5) Rainbow Painting Services Inc, paints interiors of residents and commercial structures. The firm management has established cost standards based on the amount of area to be painted: Direct material ($18 per gallon of paint): $1.50 per 100 square feet Direct labor: $2 per 100 square feet; 400 square feet per hour per worker Variable overhead: 0.60 per 100 square feet Fixed overhead (based on 600,000 square feet er month) $1.25 per 100 square feet The company painted 600,000 square feet of wall and ceiling space. The following costs were incurred: $8,550/ 450 =act Direct Material (450 gallons purchased and used) Direct Labor (1,475 hours) Variable overhead Fixed overhead 12,390 3,422 7,740 Compute the following variances indicating whether each is favorable or unfavorable. (10 Points) Std price $18, act19 1. Direct material price variance 2. Direct material usage variance 3. Direct labor rate variance

5) Rainbow Painting Services Inc, paints interiors of residents and commercial structures. The firm management has established cost standards based on the amount of area to be painted: Direct material ($18 per gallon of paint): $1.50 per 100 square feet Direct labor: $2 per 100 square feet; 400 square feet per hour per worker Variable overhead: 0.60 per 100 square feet Fixed overhead (based on 600,000 square feet er month) $1.25 per 100 square feet The company painted 600,000 square feet of wall and ceiling space. The following costs were incurred: $8,550/ 450 =act Direct Material (450 gallons purchased and used) Direct Labor (1,475 hours) Variable overhead Fixed overhead 12,390 3,422 7,740 Compute the following variances indicating whether each is favorable or unfavorable. (10 Points) Std price $18, act19 1. Direct material price variance 2. Direct material usage variance 3. Direct labor rate variance

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Description: 5) Rainbow Painting Services Inc. paints interiors of residents and commercial structures. The firmmanagement has established cost standards based on the amount of area to be painted:Direct material ($18 per gallon of paint); $1.50 per 100 square fe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $220,000 typically perform both tasks; other firm-wide overhead is expected to total $80,000. These costs are allocated as follows: Bouquet Production Delivery Other Wages and salaries 70 % 20 % 10 % Other overhead 50 % 30 % 20 % Skyline anticipates making 20,000 bouquets and 5,000 deliveries in the upcoming year.What is the cost of wages and salaries and other overhead that would be charged to each bouquet made?
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Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 2.1 hours. On average, HHH completes about 21,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials $39,900 Direct labor 655,200 Variable overhead 21,000 Fixed overhead 25,200 Required: If required, round your answers to the nearest cent. 1. Calculate the prime cost per cleaning.$fill in the blank 1per cleaning 2. Calculate the conversion cost per cleaning.$fill in the blank 2per cleaning 3. Calculate the total variable cost per cleaning.$fill in the blank 3per cleaning 4. Calculate the total service cost per cleaning.$fill in the blank 4per cleaning 5. What if rent on the office that Jean and Tom use to run HHH increased by $2,100? Which of the following statements best describes the effect of this on HHH's costs?
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