Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are madefrom brass. Manufacturing has 70 employees. Each employee presently provides 36 hours of labor perweek. Information about a production week is as follows:SHOW WORK!Standard wage per hr. $15.00Standard labor time per faucet 35 min.Standard number of Ibs. of brass per faucetStandard price per lb. of brass $2.40Actual price per lb. of brass2.5 lbs.$2.30Actual Ibs. of brass used during the weekNumber of faucets produced during the week 4,780Actual wage per hr. $15.5011,800 Ibs.Actual hours for the week (70 employees x 36 hours) 2,520A. What is the standard cost per unit for direct materials?B. What is the standard cost per unit for direct labor?C. What is the Direct Materials Price Variance?one)Favorable or unfavorable (CircleD. What is the Direct Materials Quantity Variance?one)Favorable or unfavorable (CircleE. What is the Direct Labor Rate Variance?Favorable or unfavorable (Circleone)F. What is the direct Labor Time Variance?one)Favorable or unfavorable (Circle

Solution: Introduction: Under the standard Costing method, standard cost is a predetermined cost and…

Answered: Abbeville Fixture Company manufactures…

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 1COMP

See similar textbooks

Similar questions

Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?
Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the manufacturing of 360,000 small blankets and 120,000 large blankets. What is the predetermined overhead rate if a small blanket takes 2 hours of direct labor and a large blanket takes 3 hours of direct labor?
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $15.00 Standard labor time per faucet 40 min. Standard number of Ib. of brass 3 lb. Standard price per Ib. of brass $2.40 Actual price per Ib. of brass $2.50 Actual Ib. of brass used during the week 14,350 Ib. Number of faucets produced during the week 4,800 Actual wage per hr. $14.40 Actual hrs. for the week 3,240 hrs. Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit Direct labor standard cost per unit Total standard cost per unit b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to two decimal…
Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $15.00 Standard labor time per faucet 40 min. Standard number of lb. of brass 3 lb. Standard price per lb. of brass $2.40 Actual price per lb. of brass $2.50 Actual lb. of brass used during the week 14,350 lb. Number of faucets produced during the week 4,800 Actual wage per hr. $14.40 Actual hrs. for the week 3,240 hrs. Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit $fill in the blank 1 Direct labor standard cost per unit fill in the blank 2 Total standard cost per unit $fill in the blank 3 b. Determine the direct materials price variance, direct materials…
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $12.60 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.2 lbs. Standard price per lb. of brass $12.25 Actual price per lb. of brass $12.50 Actual lbs. of brass used during the week 7,787 lbs. Number of units produced during the week 6,300 Actual wage per hour $12.98 Actual hours for the week (40 employees × 35 hours) 1,400 Required: b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $fill in the…
Lenni Clothing Co. manufacturers clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: standard wage per hr. $12.00 standard labor time per unit 12 min standard number of yds. of fabric per unit. 5.0 yds standard price per yd. of fabric $5.00 actual price per yd. of fabric $5.10 actual yds. of fabric used during the week 26,200 number of units produced during the week 5,220 Actual wage per hr. $11.80 actual hrs. for the week 1,000 hrs. Determine (a) the standard cost per unit for direct materials and direct labor; (b) the price variance, quantity variance, and total direct materials cost variance; and (c) the rate variance, time variance, and total direct labor cost variance?
Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet Industries has 70 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hour $12.00 Standard labor time per faucet 20 min. Standard number of lbs. of zinc 2.1 lbs. Standard price per lb. of zinc $10.00 Actual price per lb. of zinc $10.25 Actual lbs. of zinc used during the week 15,600 lbs. Number of faucets produced during the week 7,200 Actual wage per hour $12.40 Actual hours per week 2,520 hrs a. Determine the standard cost per faucet for direct materials and direct labor. Do not round intermediate calculations and round your answers to the nearest cent.
Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Standard wage per hr. $12.00 Standard labor time per unit 12 min. Standard number of yds. of fabric per unit 5.0 yds. Standard price per yd. of fabric $5.00 Actual price per yd. of fabric $5.10 Actual yds. of fabric used during the week 26,200 yds. Number of units produced during the week 5,220 Actual wage per hr. $11.80 Actual hrs. for the week 1,000 hrs.
The manager of a crew that installs wood floors has tracked the crew’s output over the past several weeks. Each worker works 40 hours per week, and earns $21 per hour. The wholesale cost of lumber to the company is $6 per square foot, and the company charges its customers $15 per square foot of flooring installed. The firm’s overhead rate is 150%. Week Crew Size Lumber Used (sq. ft) Flooring Installed (sq ft) 1 4 480 420 2 2 250 238 a. Calculate labor productivity for each of the weeks shown. Use the best measure of output and labor available. b. Now calculate multifactor productivity for each of the weeks shown. Explain your results imply in terms of dollars of output
Picture It Inc. manufactures customized wooden frames. The direct materials needed to construct the frames are wood, glass, and cardboard. Picture It has 22 employees who work for 40 hours in a work week and are each paid $17 per hour. The company produced and sold 900 frames in the month of September. During the month of September the following purchases were made to produce the 900 frames: Wood-4000 ft. at $1.20/ft. Glass-400 pieces at $5.60/piece Cardboard-500 pieces at $0.50/piece Required: 1. Calculate the total product cost for the month. Assume that all employees worked for 4 weeks in September and that the company incurred $55,000 as manufacturing overhead costs. 2. Calculate the per-unit cost. Round your answer to two decimal places. 3. Calculate the gross margin for the month of September assuming that the company sells each frame for $250.

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS