HelpA company uses a standard costing system with the standards per unit below:Direct materialsDirect laborVariable overheadStandard Quantity/Hours6.5 yards0.2 hoursStandard Price/Rate$2.00 per yard$23.00 per hour$ 6.00 per hourStandard Cost per Unit$13.00$ 4.60$ 1.200.2 hoursThe company reported the following results concerning this product in January.Master Budget OutputActual OutputRaw materials used in productionPurchases of raw materialsActual direct labor-hoursActual cost of raw materials purchasesActual direct labor cost2,700 units2,820 units19,380 yards21,400 yards500 hours$ 40,660$ 12,050$ 3,100Actual variable overhead costThe company applies variable overhead on the basis of direct labor-hours. The direct materials purchases price variance is computedwhen the materials are purchased.Use the above information to calculate the following FIVE variances.The materials purchases price variance for January is:O$ 2,140 FO $ 1,900 FO $ 1,900 UO$ 2,140 UThe materials quantity variance for January is:Next >13 of 23< Prev The materials quantity variance for January is:O$ 2,100 F$6,140 FO$ 2,100 UO$ 6,140 UThe direct labor efficiency variance for January is:$1,472 F$ 1,472 U$ 550 U$ 550 FThe variable overhead rate variance for January is:$ 100 F$ 100 UO$ 284 FO$ 284 UThe variable overhead spending variance for January is:O$ 384 UO$284 F

Solution 1: Actual price of material = $40,660 / 21400 = $1.90 per yard Material purchase price…

A company uses a standard costing system with the standards per unit below: Standard Quantity/Hours 6.5 yards 0.2 hours 0.2 hours Standard Price/Rate $2.00 per yard $23.00 per hour $ 6.00 per hour Standard Cost per Unit $13.00 $ 4.60 $ 1.20 Direct materials Direct labor Variable overhead The company reported the following results concerning this product in January. Master Budget Output Actual Output Raw materials used in production Purchases of raw materials Actual direct labor-hours 2,700 units 2,820 units 19,380 yards 21,400 yards 500 hours Actual cost of raw materials purchases Actual direct labor cost $ 40,660 $ 12,050 $ 3,100 Actual variable overhead cost

A company uses a standard costing system with the standards per unit below: Standard Quantity/Hours 6.5 yards 0.2 hours 0.2 hours Standard Price/Rate $2.00 per yard $23.00 per hour $ 6.00 per hour Standard Cost per Unit $13.00 $ 4.60 $ 1.20 Direct materials Direct labor Variable overhead The company reported the following results concerning this product in January. Master Budget Output Actual Output Raw materials used in production Purchases of raw materials Actual direct labor-hours 2,700 units 2,820 units 19,380 yards 21,400 yards 500 hours Actual cost of raw materials purchases Actual direct labor cost $ 40,660 $ 12,050 $ 3,100 Actual variable overhead cost

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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Crash Bang, Co. uses a standard cost system and provides the following information:Standards: Static budget variable overhead $5,590.00. Static budget fixed overhead $22,180.00. Static budget direct labor hours 565 hours. Static budget number of units 20,200 units. Static budget direct labor hours 0.016 hours per unit. Crash Bang, Co. allocates manufacturing overhead to production based on standard direct labor hours. Crash Bang, Co. reported the following actual results for 2020:Actual: Number of units produced 21,000. Actual variable overhead $5,220.00 Actual fixed overhead $24,370.00. Actual direct labor hours 482. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the variable overhead allocation rates. Budgeted VOH ? Budgeted allocation base = Standard VOH allocation rate = 2. Calculate the variable overhead cost and efficiency variances. (AC ? SC) ? AQ =…
Anthon Corporation has provided the following information regarding last month's activities. Units produced (actual) Master production budget Direct materials Direct labor Overhead Standard costs per unit Direct materials Direct labor Variable overhead Actual costs Direct materials purchased and used Direct labor Overhead 10,500 $ 237,600 201,600 267,000 $ 3.96 per liter x 5 liters per unit of output $ 33.60 per hour x 0.5 hour per unit $ 28.50 per direct labor-hour $ 207,480 (53,200 liters) 176,472 (5,160 hours) 272,000 (58% is variable) Variable overhead is applied on the basis of direct labor-hours Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variance- Note: Do not round intermediate calculations. Indicate the effect of each veriance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Budgeted standard direct labour-hours Actual fixed overhead cost for the year Actual direct labour-hours Standard direct labour-hours allowed for the actual output $63,450 $60,950 14,100 15,300 12,600 Required. 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance
A manufactured product has the following information for June. Standard Quantity and Cost Actual Results Direct materials 6 pounds @ $8 per pound 45,500 pounds @ $8.20 per pound Direct labor 2 DLH @ $15 per DLH 14,600 hours @ $15.60 per hour Overhead 2 DLH @ $12 per DLH $ 186,100 Units manufactured 7,500 units (1) Prepare the standard cost card showing standard cost per unit.(2) Compute total budgeted cost for June production.(3) Compute total actual cost for June production.(4) Compute total cost variance for June.
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.0 ounces $ 9.00 per ounce $ 54.00 Direct labor 0.7 hours $ 11.00 per hour $ 7.70 Variable overhead 0.7 hours $ 9.00 per hour $ 6.30 The company reported the following results concerning this product in June. Originally budgeted output 3,600 units Actual output 3,200 units Raw materials used in production 21,000 ounces Purchases of raw materials 20,900 ounces Actual direct labor-hours 5,000 hours Actual cost of raw materials purchases $ 42,100 Actual direct labor cost $ 13,600 Actual variable overhead cost $ 3,800 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is:
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Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH @ $16 per DLH 3 DLH @ $13 per DLH (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June. Actual Results 43,700 pounds @ $8.20 per pound 21,400 hours @ $16.60 per hour $ 287,500 7,200 units
Spree Party Lights overhead expenses are: Indirect material, pounds per unit Indirect material, cost per pound Indirect labor hours Indirect labor rate per hour Variable maintenance per unit Variable utilities per unit Supervisor salaries Maintenance salaries Insurance Depreciation Units to Produce Variable Costs Indirect Material Indirect Labor Maintenance Prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,400, 3,100, and 2,800, respectively. Spree Party Lights Manufacturing Overhead Budget For the Quarter Ending January - March January February 2,400 3,100 Utilities Total Variable Manufacturing Costs Fixed Costs 0.30 Supervisory Salaries Maintenance Salaries Insurance Depreciation Total Fixed Manufacturing Coats Total Manufacturing Overhead $2 $16.50 $0.75 $0.20 $11,000 $9,000 $3,000 $1,600 1,440 30,500 1.1900 11,000 5,000 3,000 1,500 24,600 67,020 1,860 51,150 620 53,955 11,000 9,000 3,000 1,000 24,400 10,355 March 2,1800…
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Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 7.1 ounces 0.2 hours 0.2 hours Standard Price or Rate Standard Cost Per Unit $ 28.40 $ 4.00 per ounce $ 11.00 per hour $ 2.20 $ 4.00 per hour $ 0.80 The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production 2,500 units 3,000 units 21,500 ounces Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 22,500 ounces 560 hours $ 45,100 $ 12,500 $ 3,250 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for June is: Multiple Choice $306 F $6.340 U $306 U $6,340 F