Apple manufacturing company produces a single standard product. The standard overheadcost budgets are K 100,000 for this month is 20,000 direct labour hours based on theproduction budget.The standard cost card for the product is as follows:MaterialsDirect LabourFactory overheadK 100.005 pieces @ K 10.00 = K 50.005 hours @ K 5.00 = K 25.005 hour @ K 5.00 = K 25.00The following transactions occurred during the month of March 2007.(a) Direct materials purchased 3,000 pieces @ K 9.00.(b) Direct maerials requisition 1,900 pieces.(c) Actual direct labour costs 2,100 hours @ K 5.25(d) Production completed during March 420 units.Required: Calculate the materials and labour variances.

Variance is the result of the difference between the budgeted value and actual results. It is used…

Answered: Apple manufacturing company produces a…

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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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8.00 per pound $ 40.00 Direct labor: 2 hours at $14 per hour 28.00 Variable overhead: 2 hours at $5 per hour 10.00 Total standard cost per unit $ 78.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. Direct laborers worked 55,000 hours at a rate of $15.00 per hour. Total variable manufacturing overhead for the month was $280,500. 2. What raw materials cost would be included in the company’s flexible budget for March?
At the beginning of April, Winslow Toy Company budgeted 10,000 toy action figures to be manufactured in April at standard direct materials and direct labor costs as follows: Direct materials Direct labor Total $15,000 7,200 $22,200 The standard materials price is $0.50 per pound. The standard direct labor rate is $12.00 per hour. At the end of April, the actual direct materials and direct labor costs were as follows: Actual direct materials Actual direct labor Total $13,900 6,700 $20,600 There were no direct materials price or direct labor rate variances for April. In addition, assume no changes in the direct materials inventory balances in April. Winslow Toy Company actually produced 9,000 units during April. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable…
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Overhead Item Expected Cost Cost Driver Expected Quantity Setup costs $ 59,500 Number of setups 250 Ordering costs 49,000 Number of orders 1,500 Maintenance 138,000 Machine hours 2,000 Power 29,500 Kilowatt hours 4,000 Total Overhead $ 276,000 Total direct labor hours budgeted = 2,000 hours. The following actual data applies to one of the products completed during the year: Product X Direct materials $ 6,900 Number of setups 5 Direct labor $ 4,900 Number of orders 50 Units completed 100 Machine hours 50 Direct labor hours 100 Kilowatt hours 500 If Orange, Inc. uses machine hours to allocate overhead cost, the unit product cost of Product X will be: Multiple Choice $117.00. $137.00 $147.00 $167.00. $187.00.
A company manufactures a single product, that has a standard cost per as below Direct materials Direct Labour Fixed overheads Per unit (15 metres @K6/metre) 90 (5 hours @K8/hour) 40 Variable Overheads (5hours @ K4/hour) 20 (5 hours @ K2/hour) 10 The standard selling price is K195 K The monthly budget production and sales was 1,300 units. Actual figures for the month of January 2019 are as follows: Sales Production Direct materials Direct wages Variable overheads Fixed overheads Required: 1,400 units @ K200 each. 1,500 Units 23,500 metres @ K6.50 per metre 7,000 hours @ K7.80 per hour K25,600 K14,200 Calculate the following variances: (a) Material price (b) Material usage (c) Labour rate (d) Labour efficiency (e) Variable overhead expenditure (f) Variable overhead efficiency (g) Fixed overhead volume (h) Fixed overhead expenditure (i) Sales Price (j) Sales Volume
Dubberly Corporation's cost formula for its manufacturing overhead is $32,300 per month plus $52 per machine-hour. For the month of March, the company planned for activity of 7,860 machine-hours, but the actual level of activity was 7,780 machine-hours. The actual manufacturing overhead for the month was $465,470. The activity variance for manufacturing overhead in March would be closest to: Multiple Choice $24,450 U $4,160 F $4,160 U $24,450 F
Dubberly Corporation's cost formula for its manufacturing overhead is $32,100 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,820 machine-hours, but the actual level of activity was 7,760 machine-hours. The actual manufacturing overhead for the month was $556,790. The activity variance for manufacturing overhead in March would be closest to: Multiple Cholce $24,210 U $24,210 F $3,840 F $3,840 U
ABC Pillow produces and sells animal pillow for $80.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs Fixed manufacturing costs Administrative expenses, all fixed $12,000 per month Ending inventories: Direct materials $38 per unit $ 2 per unit $60,000 per month -0- WIP -0- Finished goods 750 units 11) What is gross margin when using absorption costing? A) $95,000 B) $109,500 C) $154,500 D) $49,500
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Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost Cost Category per 100 Two-Liter Bottles Direct labor $1.20 Direct materials 6.50 Factory overhead 1.80 Total $9.50 At the beginning of March, Salisbury's management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: Actual Cost for the Cost Category Month Ended March 31 Direct labor $6,550 Direct materials 33,800 Factory overhead 9,100 Total $49,450 a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. Salisbury Bottle Company Manufacturing Cost Budget For the Month Ended March 31 Standard Cost at Planned Volume (500,000 Bottles) Check My Work Multiply the standard cost per unit times the units planned…
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Overhead Item Expected Cost Cost Driver Expected Quantity Setup costs $ 52,000 Number of setups 250 Ordering costs 34,000 Number of orders 1,500 Maintenance 108,000 Machine hours 2,000 Power 22,000 Kilowatt hours 4,000 Total Overhead $ 216,000 Total direct labor hours budgeted = 2,000 hours. The following actual data applies to one of the products completed during the year: Product X Direct materials $ 5,400 Number of setups 5 Direct labor $ 3,400 Number of orders 50 Units completed 100 Machine hours 50 Direct labor hours 100 Kilowatt hours 500 If Orange, Inc. uses direct labor hours to assign overhead, the unit product cost for Product X will be: Multiple Choice $76.00. $86.00. $96.00. $106.00. $196.00.
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for esch deportment. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor Indirect labor Utilitics Supplies Equipment depreciation Factory rent Ргopсrty tакеs Factory adninistration $15.88g $8, 280 + $1.68g $6,400 + $e.seg $1,180 + $e.48g $23,0ee + $3.78g $8,400 $2,100 $11,700 + $1.9eg The Production Department planned to work 8,000 lebor-hours in March; however, it octually worked 8,400 lobor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $134,738 $ 19,860 $ 14,578 $ 4,988 $ 54, 88e $ 8,700 $ 2,100 $ 26,470 Direct labor Indirect labor lities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: 1. Prepare the Production…
The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require 6 direct labor hours (dlh) to manufacture. Each product is budgeted for 7,500 units of production for the year. What would the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate be? a.$15.00 b.$270.00 c.$45.00 d.$90.00

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