a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle.
a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...
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Question
![17
Perez Company manufactures molded candles that are finished by hand. The company developed the following
standards for a new line of drip candles.
Amount of direct materials
per candle
Price of direct materials
per pound
Quantity of labor per unit
Price of direct labor per
hour
Total budgeted fixed
overhead
During Year 2, Perez planned to produce 26,000 drip candles. Production lagged behind expectations, and it actually
produced only 19,000 drip candles. At year-end, direct materials purchased and used amounted to 26,700 pounds at a
unit price of $0.56 per pound. Direct labor costs were actually $8.20 per hour and 29,000 actual hours were worked to
produce the drip candles. Overhead for the year actually amounted to $106,400. Overhead is applied to products using
a predetermined overhead rate based on estimated units.
Req A
and B
Required
a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost
for one drip candle.
c.&d. Compute the actual cost per candle for direct materials, direct labor, overhead and also the total actual cost per
candle.
$
e. Compute the price and usage variances for direct materials and direct labor.
f. Compute the fixed cost spending and volume variances.
Cost
$
Complete this question by entering your answers in the tabs below.
Req C
and D
1.30 pounds
0.60
1.40 hours
8.70/hour
Direct material
Direct labor
Overhead
Total per
candle
$137,800
Req E Req F
Compute the standard cost per candle for direct materials, direct labor, overhead and also
the total standard cost for one drip candle. (Round your answers to 2 decimal places.)
Standard
cost per
unit
<Req A and B
Req C and D >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4100da26-36bd-43a6-aafd-ee8e0ffe886a%2F067d83bd-4171-4b59-b889-b105edc0ff2e%2F6ub47g8_processed.png&w=3840&q=75)
Transcribed Image Text:17
Perez Company manufactures molded candles that are finished by hand. The company developed the following
standards for a new line of drip candles.
Amount of direct materials
per candle
Price of direct materials
per pound
Quantity of labor per unit
Price of direct labor per
hour
Total budgeted fixed
overhead
During Year 2, Perez planned to produce 26,000 drip candles. Production lagged behind expectations, and it actually
produced only 19,000 drip candles. At year-end, direct materials purchased and used amounted to 26,700 pounds at a
unit price of $0.56 per pound. Direct labor costs were actually $8.20 per hour and 29,000 actual hours were worked to
produce the drip candles. Overhead for the year actually amounted to $106,400. Overhead is applied to products using
a predetermined overhead rate based on estimated units.
Req A
and B
Required
a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost
for one drip candle.
c.&d. Compute the actual cost per candle for direct materials, direct labor, overhead and also the total actual cost per
candle.
$
e. Compute the price and usage variances for direct materials and direct labor.
f. Compute the fixed cost spending and volume variances.
Cost
$
Complete this question by entering your answers in the tabs below.
Req C
and D
1.30 pounds
0.60
1.40 hours
8.70/hour
Direct material
Direct labor
Overhead
Total per
candle
$137,800
Req E Req F
Compute the standard cost per candle for direct materials, direct labor, overhead and also
the total standard cost for one drip candle. (Round your answers to 2 decimal places.)
Standard
cost per
unit
<Req A and B
Req C and D >
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