aw Products, Inc. developed standard costs for direct material and direct labor. In 2017, All estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted price $80 per pound Budgeted quantity Direct materials 0.6 pounds Direct labor 0.15 hours $30 per hour During June, Heavy Products produced and sold 16,000 containers using 2,500 pounds of direct materials al average cost per pound of $83 and 2,400 direct manufacturing labor-hours at an average wage of $80.50 per hour The direct manufacturing labor efficiency variance during June is OA SO OB. $28,980 unfavorable OC. $121 200 favorable OD. S808,000 unfavorable

aw Products, Inc. developed standard costs for direct material and direct labor. In 2017, All estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted price $80 per pound Budgeted quantity Direct materials 0.6 pounds Direct labor 0.15 hours $30 per hour During June, Heavy Products produced and sold 16,000 containers using 2,500 pounds of direct materials al average cost per pound of $83 and 2,400 direct manufacturing labor-hours at an average wage of $80.50 per hour The direct manufacturing labor efficiency variance during June is OA SO OB. $28,980 unfavorable OC. $121 200 favorable OD. S808,000 unfavorable

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

Bmpany has recently createda standard cost system to help control costs and has established the following standards for the Maze toy Direct materials: 6 microns per toy at $0.31 per micron Direct labor. 11 hours per toy at $750 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows Direct materials 79,000 microns were purchased at a cost of $0.28 per micron. 38,500 of these microns were stil in inventory at the end of the month Direct labor. 6,440 direct labor-hours were worked at a cost of $50,876 Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "E for favorable. "U" for unfavorable. and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances 1a Material price…
Animent Industries, Inc. (AII), developed standard costs for direct material and direct labor. In 2015, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.. Budgeted quantity Budgeted price Direct materials 0.10 pounds $60 per pound Direct labor 0.05 hours $30 per hour During June, AII produced and sold 20,000 containers using 1,900 pounds of direct materials at an average cost per pound of $64 and 1,000 direct manufacturing labor-hours at an average wage of $30.50 per hour.The direct manufacturing labor efficiency variance during June is ________.
Julia Company produces a single product. The company has set the following standards for materials and labor: Standard quantity or hours per unit Standard price or rate Direct materials ? pounds per unit $ ? per pound Direct labor 3.0 hours per unit $ 10 per hour During the past month, the company purchased 7,000 pounds of direct materials at a cost of $17,500. All of this material was used in the production of 1,300 units of product. Direct labor cost totaled $36,750 for the month. The following variances have been computed: Materials quantity variance $ 1,375 U Total materials variance $ 375 F Labor efficiency variance $ 4,000 F Required:1. For direct materials:a. Compute the standard price per pound of materials.b. Compute the standard quantity allowed for materials for the month's production.c. Compute the standard quantity of materials…
Miguez Corporation makes a product with the following standard costs: Standard Quantity orHours Standard Price orRate Standard Cost Per Unit Direct materials 2.8 liters $ 7.50 per liter $ 21.00 Direct labor 0.5 hours $ 27.00 per hour $ 13.50 Variable overhead 0.5 hours $ 2.50 per hour $ 1.25 The company budgeted for production of 3100 units in September, but actual production was 3000 units. The company used 5940 liters of direct material and 1730 direct labor-hours to produce this output. The company purchased 6300 liters of the direct material at $7.70 per liter. The actual direct labor rate was $29.10 per hour and the actual variable overhead rate was $2.40 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 variable overhead rate variance for September is:
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…
Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Direct materials Direct labor variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours ? ? ? Materials Used $ 6,720 $ 5,355 standard Price or Rate $4.00 per yard Overhead is applied to production on the basis of direct labor-hours. During March, 420 backpacks were manufactured and sold. Selected Information relating to the month's production is given below: ? $ 420 U Total standard cost allowed* Actual costs incurred. Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance *For the month's production. The following additional Information is available for March's production: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March ? $2 per…
Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $16. The budgeted conversion cost for the year is $308,000 for 2,200 production hours. A unit of Style Omega requires 18 minutes of cell production time. The following transactions took place during June: Materials were acquired to assemble 620 Style Omega units for June. Conversion costs were applied to 620 Style Omega units of production. 600 units of Style Omega were completed in June. 580 units of Style Omega were sold in June for $100 per unit. a. Determine the budgeted cell conversion cost per hour.$fill in the blank 1b6fdf054f9e011_1 per hour b. Determine the budgeted cell conversion cost per unit.$fill in the blank 1b6fdf054f9e011_2 per unit c. Journalize the summary transactions (1)–(4) for June. If an amount box does not require an entry, leave it blank. 1. ? ? ? ? 2. ? ? ? ? 3. ? ?…
Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $706,200 for 2,140 production hours. Each unit requires 12 minutes of cell process time. During March, 960 DVR players were manufacture the cell. The materials cost per unit is $66. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3.960 DVR players were assembled and placed in finished goods. 4.910 DVR players were sold for $234 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. per unit
possible Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, All estimated the following standard costs for one of their major products, the 10- gallon plastic container. Budgeted quantity. 0.1 pounds Budgeted price $100 per pound $20 per hour Direct materials Direct labor 0.1 hours During June, Heavy Products produced and sold 20,000 containers using 2,500 pounds of direct materials at an average cost per pound of $106 and 2,000 direct manufacturing labor - hours at an average wage of $101.00 per hour. The direct manufacturing labor efficiency variance during June is A. $162,000 favorable O B. $1,620,000 unfavorable OC. $0 M OD. $20,200 unfavorable http He In20 gallo Missim https:// Heav In 2017, 10minus 1 answer Missing: 0
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $3 per pound) $45 Direct labor (3 hours @ $14 per hour) 42 During May the company incurred the following actual costs to produce 8,600 units. Direct materials (131,700 pounds @ $2.80 per pound) $368,760 Direct labor (29,200 hours @ $14.10 per hour) 411,720 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.
Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (2 hours @ $14 per hour) 28 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $4.75 per pound) $ 595,175 Direct labor (22,300 hours @ $14.15 per hour) 315,545 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.