Bello Company produces chairs and has determined the following direct cost categories and budgeted amounts: Budget Inputs Budget Cost Category per unit per input Direct Materials 3.20 Ibs. $7.50 per Ib. Direct Labor 4.0 hours $15.00 per hr. Budgeted output 4,500 units Actual performance for the company is shown below: Actual output: (in units) 4,000 Direct Materials (DM): DM pounds purchased and used 11,700 Actual price per pound $8.25 Direct Manufacturing Labor (DL): Actual DL price per hour $15.85 Actual DL cost $268,816 a. Calculate the direct materials price, efficiency, and flexible budget variances

Bello Company produces chairs and has determined the following direct cost categories and budgeted amounts: Budget Inputs Budget Cost Category per unit per input Direct Materials 3.20 Ibs. $7.50 per Ib. Direct Labor 4.0 hours $15.00 per hr. Budgeted output 4,500 units Actual performance for the company is shown below: Actual output: (in units) 4,000 Direct Materials (DM): DM pounds purchased and used 11,700 Actual price per pound $8.25 Direct Manufacturing Labor (DL): Actual DL price per hour $15.85 Actual DL cost $268,816 a. Calculate the direct materials price, efficiency, and flexible budget variances

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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Banks Corporation has the following information for direct materials for the latest period. BANKS CORPORATION INFORMATION FOR DIRECT MATERIALS FOR THE LATEST PERIOD Standard price per unit of direct materials Actual price per unit of direct materials Budgeted units of output Standard quantity of direct materials allowed per unit of output Actual units of direct materials used Actual units of direct materials purchased Actual units of output produced SA SA $ 15.00 $ 16.50 45,000 3 units 40,000 50,000 14,000 The company calculates its price variance based on quantity purchased. What was the total quantity of direct materials allowed based on the standards? 45,000. 50,000.
The following data is given for the Bahia Company: Budgeted production 1,038 units Actual production 958 units Materials: Standard price per pound $1.819 Standard pounds per completed unit 12 Actual pounds purchased and used in production 11,151 Actual price paid for materials $22,860 Labor: Standard hourly labor rate $14.49 per hour Standard hours allowed per completed unit 4.1 Actual labor hours worked 4,933.7 Actual total labor costs $75,239 Overhead: Actual and budgeted fixed overhead $1,182,000 Standard variable overhead rate $24.00 per standard labor hour Actual variable overhead costs $138,144 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a.$91,098.27 unfavorable b.$91,098.27 favorable c.$43,876.80 unfavorable d.$43,876.80 favorable
The following data are given for Stringer Company: Budgeted production 963 units Actual production 1,070 units Materials: Standard price per ounce $1.78 Standard ounces per completed unit 12 Actual ounces purchased and used in production 13,225 Actual price paid for materials $27,111 Labor: Standard hourly labor rate $14.12 per hour Standard hours allowed per completed unit 5.0 Actual labor hours worked 5,510.5 Actual total labor costs $84,035 Overhead: Actual and budgeted fixed overhead $1,192,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $154,294 Overhead is applied on standard labor hours. Do not round interim calculations. Round your final answer to the nearest dollar. The direct materials price variance is Oa. S8,927 unfavorable Ob. $3,571 unfavorable Oc. $3,571 favorable Od. $8,927 favorable
Maria Company uses both standards and budgets. For the year, estimated production of Product X is 597,000 units. Total estimated cost for materials and labor are $1,194,000 and $1,671,600respectively.Compute the estimates for (a) a standard cost and (b) a budgeted cost. (Round standard costs to 2 decimal places, e.g. 1.25.) Materials Labor (a) Standard cost $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places (b) Budgeted cost $enter a dollar amount $enter a dollar amount
Sweet Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.0 ounces $ 3.00 per ounce $ 18.00 Direct labor 0.3 hours $ 11.00 per hour $ 3.30 Variable overhead 0.3 hours $ 9.00 per hour $ 2.70 The company reported the following results concerning this product in April. Originally budgeted output 3,600 units Actual output 3,200 units Raw materials used in production 21,000 ounces Purchases of raw materials 22,100 ounces Actual direct labor-hours 500 hours Actual cost of raw materials purchases $ 42,300 Actual direct labor cost $ 13,600 Actual variable overhead cost $ 3,800 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 efficiency variance for April is:
The Gathering Sound, Inc. collected the following data regarding production of one of its products. Budgeted units 20,000 units Standard direct labor hours per unit of output 3.0 DL hours per unit Predetermined variable factory overhead rate $1.90 Per DL hour Predetermined fixed factory overhead rate $4.50 Per DL hour Actual finished units produced 21,000 units Actual direct labor hours 58,000 hrs. Actual variable overhead costs incurred $ 101,500 Actual fixed overhead costs incurred $ 262,160 Compute the fixed overhead volume variance. a. $21,340F b. $13,500U c. $7,840F d. $21,340U e. $13,500F
(18) Bello Company produces chairs and has determined the following direct cost categoriesand budgeted amounts:Budget Inputs Budget CostCategory per unit per inputDirect Materials 3.20 lbs. $7.50 per lb.Direct Labor 4.0 hours $15.00 per hr.Budgeted output 4,500 unitsActual performance for the company is shown below:Actual output: (in units) 4,000Direct Materials (DM): DM pounds purchased and used 11,700 Actual price per pound $8.25Direct Manufacturing Labor (DL): Actual DL price per hour $15.85 Actual DL cost $268,816a. Calculate the direct materials price, efficiency and flexible budget variancesb. Provide a possible cause or driver for the direct materials price variance. Be specific.c. Calculate the direct labor price, efficiency, and flexible budget variances.
Use this information for Stringer Company to answer the question that follow. The following data are given for Stringer Company: Budgeted production 930 units Actual production 1,013 units Materials: Standard price per ounce $1.85 Standard ounces per completed unit 10 Actual ounces purchased and used in production 10,434 Actual price paid for materials $21,390 Labor: Standard hourly labor rate $14.60 per hour Standard hours allowed per completed unit 4.7 Actual labor hours worked 5,216.95 Actual total labor costs $79,558 Overhead: Actual and budgeted fixed overhead $1,015,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $146,075 Overhead is applied on standard labor hours. Round your intermediate calculations and final answer to the nearest cent. The direct materials price variance is a.$5,217.00 favorable b.$2,086.80 favorable c.$2,086.80…
Use this information for Stringer Company to answer the question that follow. The following data are given for Stringer Company: Budgeted production 911 units Actual production 1,080 units Materials: Standard price per ounce $1.89 Standard ounces per completed unit 10 Actual ounces purchased and used in production 11,124 Actual price paid for materials $22,804 Labor: Standard hourly labor rate $14.32 per hour Standard hours allowed per completed unit 4.3 Actual labor hours worked 5,562 Actual total labor costs $84,821 Overhead: Actual and budgeted fixed overhead $1,082,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $155,736 Overhead is applied on standard labor hours. The direct materials quantity variance is a.$1,779.64 favorable b.$1,779.64 unfavorable c.$612.36 unfavorable d.$612.36 favorable
The following data are given for Stringer Company: Budgeted production Actual production Materials: Standard price per ounce Standard ounces per completed unit Actual ounces purchased and used in production Actual price paid for materials Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs 907 units 1,033 units $1.91 11 11,704 $23,993 $14.84 per hour 4.6 5,319.95 $81,129 Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. Do not round interim calculations. Round your final answer to the nearest dollar. The direct materials price variance is $1,071,000 $28.00 per standard labor hour $148,959
he following data is given for the Bahia Company: Budgeted production 1,091 units Actual production 974 units Materials: Standard price per pound $1.846 Standard pounds per completed unit 10 Actual pounds purchased and used in production 9,448 Actual price paid for materials $19,368 Labor: Standard hourly labor rate $14.80 per hour Standard hours allowed per completed unit 4.8 Actual labor hours worked 5,016.1 Actual total labor costs $76,496 Overhead: Actual and budgeted fixed overhead $1,055,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $140,451 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is