**Lucia Company Standard Cost and Variance Analysis****Standard Cost per Unit:**- Direct materials: 15 pounds @ $4 per pound = $60- Direct labor: 4 hours @ $15 per hour = $60**Actual Costs Incurred in May for 8,600 Units:**- Direct materials: 131,500 pounds @ $3.80 per pound = $499,700- Direct labor: 38,600 hours @ $15.10 per hour = $582,860**Definitions:**- **AR (Actual Rate):** The actual rate paid per unit of measure.- **SR (Standard Rate):** The predetermined rate expected to be paid per unit of measure.- **AQ (Actual Quantity):** The actual amount of input used.- **SQ (Standard Quantity):** The expected amount of input for actual production.- **AP (Actual Price):** The actual price per unit.- **SP (Standard Price):** The standard price per unit.**Tasks:**1. Compute the direct materials price and quantity variances.2. Compute the direct labor rate variance and the direct labor efficiency variance.**Instructions:**- Use the provided table to calculate the variances, indicating if they are favorable, unfavorable, or show no variance. The diagram consists of a table with sections for entering actual and standard costs, facilitating variance calculations. Each row corresponds to either direct materials or direct labor, separated into columns for quantity, rate, and computed variances. Use this information to determine cost efficiency and performance.

Name: **Lucia Company Standard Cost and Variance Analysis****Standard Cost
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: **Lucia Company Standard Cost and Variance Analysis****Standard Cost per Unit:**- Direct materials: 15 pounds @ $4 per pound = $60- Direct labor: 4 hours @ $15 per hour = $60**Actual Costs Incurred in May for 8,600 Units:**- Direct materials: 131,50

The difference between the standard and the actual cost is used for calculating the variances. When…

Business

Accounting

any has set the following Direct materials (15 pounds @ $4 per pound) Direct labor (4 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,600 units. Direct materials (131,500 pounds @ $3.80 per pound) Direct labor (38,600 hours @ $15.10 per hour)] AR Actual Rate SR = Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price perdit for dire $ 60 60 Required 1 Required 2 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Tidis and Complete this question by entering your answers in the tabs below. Actual Cost $ 499,700 582,860 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Required 1 Required 2 > Standard Cost

any has set the following Direct materials (15 pounds @ $4 per pound) Direct labor (4 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,600 units. Direct materials (131,500 pounds @ $3.80 per pound) Direct labor (38,600 hours @ $15.10 per hour)] AR Actual Rate SR = Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price perdit for dire $ 60 60 Required 1 Required 2 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Tidis and Complete this question by entering your answers in the tabs below. Actual Cost $ 499,700 582,860 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Required 1 Required 2 > Standard Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The manufacturing costs of Callico Industries for three months of the year are provided below: Total Cost Production (units) April $119,100 283,700 May 92,000 168,600 June 101,600 233,700 Using the high-low method, the variable cost per unit and the total fixed costs are a. $0.24 per unit and $51,012 Ob. $2.40 per unit and $5,101 Oc. $4.32 per unit and $5,101 d. $0.43 per unit and $25,506
[The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Quantity and Cost Actual Results Direct materials 7 pounds @ $7 per pound 58,600 pounds @ $7.20 per pound Direct labor 2 DLH @ $16 per DLH 16,300 hours @ $16.50 per hour Overhead 2 DLH @ $12 per DLH $ 205,500 Units manufactured 8,300 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. Compute total budgeted cost for June production. Total budgeted (standard) cost Compute total actual cost for June production. Actual cost Compute total cost variance for June. (Indicate the effect of the variance by selecting…
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (4 hours @ $14 per hour) $ 56 56 During May the company incurred the following actual costs to produce 8,600 units. Direct materials (123,200 pounds @ $3.80 per pound) Direct labor (38,700 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP Standard Price AH = Actual Hours SH Standard Hours $ 468,160 545,670 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost Standard Cost < Prev 8 of 8 Next
Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: $ 3.00 per lb. $8.20 per hour $ 2.80 per lb. 1,040,000 lbs. 21,000 1,295,000 lbs. 17,000 1,070,000 lbs. $6,120 F Actual purchase price Actual direct labor rate Standard purchase price Standard quantity for sets produced Standard direct labor hours allowed Actual quantity purchased in October Actual direct labor hours Actual quantity used in October Direct labor rate variance Required: 1. Calculate the total cost of purchases for October. 2. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity variance based on quantity used. 4. Compute the standard direct labor rate for October. 5. Compute the direct labor efficiency variance for October.
Apex Corporation estimates that its production for the coming year will be 10,000 units with the following unit costs: Direct materials P40 Direct labor P60 Direct labor is paid at the rate of P24 per hour. The machine should be run for 20 minutes to produce one unit. Total estimated overhead is expected to consist of P400,000 for variable overhead and P400,000 for fixed overhead. What is the predetermined overhead rate based on direct labor cost? B D 113% 166% 133% 153%
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,100 10,100 12,100 13,100 Each unit requires 0.20 direct labor-hours and direct laborers are paid $12.50 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $91,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $31,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Req 2…
Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost January $26,800 February 38,500 March 28,200 April 30,800 a. $23,329 Ob. $10,978 Oc. $43,914 Od. $13,723 Machine Hours 9,500 18,000 11,700 15,400 ?
Nevada Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate 3.00 per ounce 6.4 ounces 0.4 hours 0.4 hours $ $ 13.00 per hour S 5.00 per hour The company reported the following results concerning this product in March. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Direct materials Direct labor Variable overhead Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate O $3,136 F O $3,260 F S S S O $3,136 U O $3,260 U Standard Cost Per Unit S S S 4,800 units 4,900 units 30,230 ounces 1,910 hours. 32,600 ounces 2.90 per ounce 12.40 per hour 4.90 per hour 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 price variance for March is: 19.20 5.20 2.00
The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $98,908 1,180 Units May 101,540 1,650 June 105,740 2,400 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.$ per unit b. Using the high-low method, determine the total fixed costs.$
Assume a company reported the following results: Sales $400,000 Variable expenses 260,000 Contribution margin Fixed expenses 140,000 60,000 Net operating income $ 80,000 Average operating assets $575,000 The margin is closest to: Multiple Choice 35.0%. 20.0%. 69.6%. 14.5%.
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $3 per pound) Direct labor (2 hours @ $14 per hour) $ 42 28 During May the company incurred the following actual costs to produce 8.100 units. Direct materials (115,780 pounds @ $2.80 per pound) Direct labor (19,700 hours @ $14.10 per hour) $ 323,968 277,770 AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ AP Standard Quantity Actual Price SP=Standard Price AH = Actual Hours SH Standard Hours (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
Please solve all requirements