Assume that during the past month, Sanford produced 10,000 cartons of Liquid ACCENTⓇhighlighters. Liquid ACCENT® offers a translucent barrel and cap with a visible ink supplyfor see-through colour. The special fluorescent ink is fade- and water-resistant. Each cartoncontains 100 boxes of marker, and each box contains five markers. The markers come inboxes of one of five fluorescent colours-orange, blue, yellow, green, and pink-and in a five-colour set.Assume the following additional facts: The standard cost for one carton of 500markers is as follows.Manufacturing Cost ElementsDirect materialsTips (boxes of 500)500Translucent barrels and caps (boxes of 500) 500Fluorescent ink (100 oz. containers)100 oz.Total direct materialsDirect laborManufacturing overheadStandardQuantity X PriceX $ 0.03X $ 0.09 =X $ 0.32 =0.25 hrs X $ 9.00 =0.25 hrs$48.00 =Cost$15.0045.0032.0092.002.2512.00$106.25During the month, the following transactions occurred in manufacturing the 10,000 cartons ofhighlighters.1. Purchased 10,000 boxes of tips for $148,000 ($14.80 per 500 tips); purchased 10,200boxes of translucent barrels and caps for $453,900 ($44,50 per 500 barrels and caps); andpurchased 9,900 containers of fluorescent ink for $328,185 ($33.15 per 100 ounces).2. All materials purchased during the period were used to make markers during the period.3. 2,300 direct labour hours were worked at a total labour cost of $20,240 (an averagehourly rate of $8.80).4. Variable manufacturing overhead incurred was $34,600, and fixed overhead incurred was$84,000.The manufacturing overhead rate of $48.00 is based on a normal capacity of 2,600 labourhours. The total budget at this capacity is $83,980 fixed and $40,820 variable.Instructionsa) Compute the total variance and the variances for direct materials and direct labourelementsb) Compute the total variance for manufacturing overheadc) Explain and compare the results of Favourable and Unfavourable in points a and b

The study of variances between actual behavior and predicted or planned behavior in budgeting or…

Assume that during the past month, Sanford produced 10,000 cartons of Liquid ACCENTⓇ highlighters. Liquid ACCENT® offers a translucent barrel and cap with a visible ink supply for see-through colour. The special fluorescent ink is fade- and water-resistant. Each carton contains 100 boxes of marker, and each box contains five markers. The markers come in boxes of one of five fluorescent colours-orange, blue, yellow, green, and pink-and in a five- colour set. Assume the following additional facts: The standard cost for one carton of 500 markers is as follows. Manufacturing Cost Elements Standard Quantity X Price = Cost

Assume that during the past month, Sanford produced 10,000 cartons of Liquid ACCENTⓇ highlighters. Liquid ACCENT® offers a translucent barrel and cap with a visible ink supply for see-through colour. The special fluorescent ink is fade- and water-resistant. Each carton contains 100 boxes of marker, and each box contains five markers. The markers come in boxes of one of five fluorescent colours-orange, blue, yellow, green, and pink-and in a five- colour set. Assume the following additional facts: The standard cost for one carton of 500 markers is as follows. Manufacturing Cost Elements Standard Quantity X Price = 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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