3. Fizen Lures Inc. manufactured fishing lures. Their most popular lure is a Bass plug which uses a hook purchased from another manufacturer and polystyrene for the body of the lure itself. The company uses highly automated injection molding machines to manufacture lures. Because of this direct labor cost are at a minimum because one machine operator can operate three injection molding machines at same time. The company has developed the following standard costs include scrap to manufacture each lure: Material standards: Hook: 1.1 Hooks per lure at $.10 per hook. Polystyrene plastic: 3.5 ounces per lure at $.25 per Labor standards: ounce. Direct labor: .005 hours to produce one lure at $23.50/hr. including all employer payroll taxes and benefits. During month of April the company manufactured 120,000 Bass lures and incurred the following costs: Material costs: Purchased 30,000 pounds (480,000 ounces) of polystyrene for a total cost of $144,000 dollars. Used 418,000 ounces of polystyrene to produce the Bass lures. Purchased 140,000 hooks for a total cost of $13,500. Used 130,000 hooks to produce the Bass lures. Labor costs: 635 hours for a total direct labor cost of $15,240, Calculate the PPv: Note for the PPV and the MUV you must calculate the veriance tor the Hooks and Plastic. Calculate the MUV Calculate the LRV Calculate the LeV +
3. Fizen Lures Inc. manufactured fishing lures. Their most popular lure is a Bass plug which uses a hook purchased from another manufacturer and polystyrene for the body of the lure itself. The company uses highly automated injection molding machines to manufacture lures. Because of this direct labor cost are at a minimum because one machine operator can operate three injection molding machines at same time. The company has developed the following standard costs include scrap to manufacture each lure: Material standards: Hook: 1.1 Hooks per lure at $.10 per hook. Polystyrene plastic: 3.5 ounces per lure at $.25 per Labor standards: ounce. Direct labor: .005 hours to produce one lure at $23.50/hr. including all employer payroll taxes and benefits. During month of April the company manufactured 120,000 Bass lures and incurred the following costs: Material costs: Purchased 30,000 pounds (480,000 ounces) of polystyrene for a total cost of $144,000 dollars. Used 418,000 ounces of polystyrene to produce the Bass lures. Purchased 140,000 hooks for a total cost of $13,500. Used 130,000 hooks to produce the Bass lures. Labor costs: 635 hours for a total direct labor cost of $15,240, Calculate the PPv: Note for the PPV and the MUV you must calculate the veriance tor the Hooks and Plastic. Calculate the MUV Calculate the LRV Calculate the LeV +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. Fizen Lures Inc. manufactured fishing lures. Their most popular lure is a Bass plug which uses
a hook purchased from another manufacturer and polystyrene for the body of the lure itself.
The company uses highly automated injection molding machines to manufacture lures. Because
of this direct labor cost are at a minimum because one machine operator can operate three
injection molding machines at same time. The company has developed the following standard
costs include scrap to manufacture each lure:
Material standards:
Hook: 1.1 Hooks per lure at $.10 per hook.
Polystyrene plastic: 3.5 ounces per lure at $.25 per
Labor standards:
ounce.
Direct labor: .005 hours to produce one lure at $23.50/hr. including all employer payroll taxes
and benefits.
During month of April the company manufactured 120,000 Bass lures and incurred the
following costs:
Material costs:
Purchased 30,000 pounds (480,000 ounces) of polystyrene for a total cost of $144,000 dollars.
Used 418,000 ounces of polystyrene to produce the Bass lures.
Purchased 140,000 hooks for a total cost of $13,500.
Used 130,000 hooks to produce the Bass lures.
Labor costs: 635 hours for a total direct labor cost of $15,240,
Transcribed Image Text:Calculate the PPv: Note for the PPV and the MUV you must calculate the veriance tor the Hooks and Plastic.
Calculate the MUV
Calculate the LRV
Calculate the LeV
+
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