6. Cartman makes Supersized Cheezy-Poofs. Cartman determined the standards for each unit (bag) of Cheezy-Poof produced requires 1.5 gallons of ingredients (direct materials) and 0.75 direct labor hours. Cartman expects to pay $2 per gallon of ingredients and his employees a rate of $10 per hour. Based on the company's forecasts, Cartman is expecting to sell 15,000 units (bags) during the year. At the end of year, Cartman actually sold 16,000 units (bags), used 25,000 gallons of ingredients, and paid $1.9 per gallon. Further, Human resources informed Cartman that he incurred $144,000 in direct labor costs from 10,000 direct labor hours (assume no overtime is used). a. What is the material price variance? Indicate favorable / unfavorable variances for full credit b. What is the material quantity variance? Indicate favorable / unfavorable variances for full credit d. What is the labor rate variance? Indicate favorable / unfavorable variances for full credit

6. Cartman makes Supersized Cheezy-Poofs. Cartman determined the standards for each unit (bag) of Cheezy-Poof produced requires 1.5 gallons of ingredients (direct materials) and 0.75 direct labor hours. Cartman expects to pay $2 per gallon of ingredients and his employees a rate of $10 per hour. Based on the company's forecasts, Cartman is expecting to sell 15,000 units (bags) during the year. At the end of year, Cartman actually sold 16,000 units (bags), used 25,000 gallons of ingredients, and paid $1.9 per gallon. Further, Human resources informed Cartman that he incurred $144,000 in direct labor costs from 10,000 direct labor hours (assume no overtime is used). a. What is the material price variance? Indicate favorable / unfavorable variances for full credit b. What is the material quantity variance? Indicate favorable / unfavorable variances for full credit d. What is the labor rate variance? Indicate favorable / unfavorable variances for full credit

Name: 6. Cartman makes Supersized Cheezy-Poofs. Cartman determined the stan
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Description: 6. Cartman makes Supersized Cheezy-Poofs. Cartman determined the standards for each unit (bag)of Cheezy-Poof produced requires 1.5 gallons of ingredients (direct materials) and 0.75 direct laborhours. Cartman expects to pay $2 per gallon of ingredie

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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Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 per pound. The company produced 1,000 units that required 4,500 pounds, which were purchased at $3.00 per pound. The product also requires 3 standard hours per unit at a standard hourly rate of $17 per hour. The 1,000 units produced required 2,800 hours at an hourly rate of $16.50 per hour. In addition, the standard variable overhead cost per unit is $1.40 per hour and the actual variable factory overhead was $4,000. Finally, the standard fixed overhead cost per unit is $0.60 per hour at 3,500 hours, which is 100% of normal capacity. Prepare an income statement through gross profit for Dvorak Company for the month ended July 31. Assume that Dvorak sold 1,000 units at $90 per unit. If an amount box does not require an entry, leave it blank or enter "0".
Shadee Corp. expects to sell 620 sun visors in May and 380 in June. Each visor sells for $22 Shadee's beginning and ending finished goods inventories for May are 90 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 26 closures on hand on May 1, 18 closures on May 31, and 27 closures on June 30. Additionally. Shadee's fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $1.50 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June 2. Determine Shadee's budget manúfacturing overhead for May and June Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answeos to 2 decimal…
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Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,830 canoes, 3,110 canoes, and 3,550 canoes. Canoes sell for $930 each. The standard variable cost information for a canoe is as follows. Direct materials $ 220 Direct labor 109 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 454 Annual fixed overhead cost is expected to be: Maintenance $ 22,200 Depreciation 42,900 Insurance 27,100 Rent 33,530 Total $ 125,730
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Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,700 helmets, using 2.812 kilograms of plastic. The plastic cost the company $18,559. According to the standard cost card, each helmet should require 0.66 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3.700 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,700 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of kilograms allowed…
Garcia Company sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, variable overhead of $50, and variable selling, general, and administrative costs of $8. The company has fixed overhead costs of $645,000 and fixed selling, general, and administrative costs of $111,000. It expects to produce and sell 10,500 snowboards. What is the selling price per unit if Garcia uses a markup of 15% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Selling price per unit
Nardin Outfitters has a capacity to produce 21,000 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,800 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs The company has received a special order for 2,300 tents at a price of $780 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $63 per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (loss) per case Required: a. What is the…
Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,200 helmets, using 2,048 kilograms of plastic. The plastic cost the company $13,517. According to the standard cost card, each helmet should require 0.58 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,200 helmets? 2. What is the standard materials cost allowed (SQ x SP) to make 3,200 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? Note: For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. 1. Standard quantity of kilograms…
Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,800 helmets, using 2,812 kilograms of plastic. The plastic cost the company $21,371. According to the standard cost card, each helmet should require 0.66 kilogram of plastic, at a cost of $8.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets? 2. What is the standard materials cost allowed (SQ x SP) to make 3,800 helmets? 3. What is the materials spending variance? 4. What are the materials price variance and the materials quantity variance? Note: For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. 1. Standard quantity of kilograms…
Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10.10 from an outside vendor. Division A needs 11,100 lamps for the coming year. Division B has the capacity to manufacture 49,600 lamps annually. Sales to outside customers are estimated at 38,500 lamps for the next year. Reading lamps are sold at $12.09 each. Variable costs are $6.87 per lamp and include $1.41 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $75,900. Consider the following independent situations. What should be the minimum transfer price accepted by Division B for the 11,100 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e.g. 15.25.) Per unit Minimum transfer price accepted by Division B $_ Maximum transfer…