Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:Standard Quantity Standard Price Standard CostDirect materials 6.0 grams $3.50/gram $21.00Direct labour 1.3 hours $11.00/hour 14.30$35.30During March, Bryan purchased 170,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000units of product during March using 151,000 grams of direct material and 32,000 direct labour hours.TB 11 -76 The price variance for the direct...The price variance for the direct material acquired by the company during March is:Multiple Choice$7,550 favourable.$7,550 unfavourable.$8,250 unfavourable.$8,250 favourable.

Price variance is a measure of cost control and efficiency. It is the difference between the actual…

Answered: Bryan Company employs a standard 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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Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Direct materials Direct labor Hi-Tek produced and sold 60,000 units of B300 at a price of $19 per unit and 12,800 units of T500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Manufacturing overhead Cost of goods sold $ 1,652,000 1,241,100 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $109,000 of the company's advertising expenses could be…
rane makes Halloween costumes. The company incurred the following total costs to produce 30,700 costumes. Direct materials $235,000 Direct labor 164,000 Variable overhead 21,590 Fixed overhead 119,730 (a) Under the absorption costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 21,900 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.) Average unit product cost $enter a dollar amount rounded to 2 decimal places Product cost $enter a dollar amount rounded to 0 decimal places (b) Under the variable costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 21,900 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.) Average unit product cost…
Aurora Company produces special kitchen utensils using the JIT system. Transactions for the current period are as follow:(1) Raw materials purchased, P1,590,000(2) Direct labor costs of P2,500,000 were incurred.(3) Actual overhead costs of P3,500,000 were incurred.(4) Conversion costs are directly charged to cost of sales.(5) Finished goods, end amounted to P420,000 of which P200,000 is materials.(6) Finished goods, beg amounted to P600,000 of which P350,000 is materials(7) RIPI, beginning P850,000, of which materials is P600,000.(8) RIPI, ending P750,000, of which materials is P500,000. The cost of sales for the period amounted to
Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the costs to process PM-20 are $524,000 for materials and $196,000 for conversion costs. The results of the processing follow: Alpha Beta Gamma Product Alpha Beta Units Produced 24,000 19, 200 4,800 Required: Assign costs to Alpha, Beta, and Gamma for February using the net realizable value method. Gamma Total Sales Value per Unit $ 9.60 18.00 80.00 Cost Assigned
Integrity Company uses standard costing for each specialized product. The following information is available:Standards:Material- 3.0 feet per unit @ P42.00 per footLabor- 2.5 hours per unit @ P75.00 per hourActual:Production- 2,750 units produced during the monthMaterial- 8,700 feet used; 9,000 feet purchased @ P45.00 per footLabor- 7,000 direct labor hours @ P79.00 per hourHow much is the materials usage variance?
Cutie Pie Company produces a single product. The standard cost for the product follows: Direct materials used in production 5,000 yards Direct materials purchased (6,000 yards) P 28,500 Direct labor costs incurred (2,100 hours) P 17,850 Variable manufacturing overhead incurred P 10,080 During the recent period, the company produced 1,200 units of product. Various costs associated with the production of these units are applied to products on the basis of direct labor hours. Other information are as follows: Direct materials (4 yards @ P5) P 20 Direct labor (1.5 hours @ P10) P 15 Variable manufacturing overhead (1.5 hours @ P4) P 6 The company record all variances at the earliest time possible. The variable overhead spending variance for the period is
Regent Corporation uses a standard cost system to account for the costs of its one product. Materials standards are 3 pounds of material at $14.00 per pound, and labor standards are 9 hours of labor at a standard wage rate of $10.5. During July, Regent Corporation produced 3,050 units. Materials purchased and used totaled 10,600 pounds at a total cost of $143,213. Payroll totaled $151,780 for 38,150 hours worked. Required: a. Calculate the direct materials price variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct materials spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero…
The Bottling Department of Mountain Springs Water Company had 4,400 liters in beginning work in process inventory (25% complete). During the period, 55,400 liters were completed. The ending work in process inventory was 3,000 liters (65% complete). All inventories are costed by the first-in, first-out method. What are the equivalent units for conversion costs under the FIFO method? what are the equivalent units for conversion costs
Raiden Sdn. Bhd. manufactures two products: A and B. The company predicts a sales volume of 10,000 units for product A and ending finished-goods inventory of 2,000 units. These numbers for product B are 12,000 and 3,000, respectively. Raiden Sdn. Bhd currently has 7,000 units of A in inventory and 9,000 units of B. The following raw materials are required to manufacture these products: Description Raw Required for Product A Cost per Kilo gram (RM / KG) 2.00 Material 2 kg 1 kg 1 kg 3 kg Y 2.50 1.25 Product A requires three hours of cutting time and two hours of finishing time; B requires one hour and three hours, respectively. The direct labour rate for cutting is RM10 per hour and RM18 per hour for finishing. Required to prepare: (a) Production budget in units for products A and B. (b) Materials usage budget in kilogram and cost for materials X, Y. and Z. (c) Direct labour budget in hours and cost for product A.
Cello Industries commenced operations in January and uses a standard cost accounting system. During the month of January, Cello purchased and used 32,000 pounds of raw materials at a cost of $2.80 per pound. The standard price is $3.00 per pound. Cello completed 15,500 units of finished goods during January and the standard quantity of raw materials per unit is 2.0 pounds.. Which of the following journal entries properly records the purchase and use of raw materials in January? A. B. C. D. WIP inventory Dr. $93,000 Dr. $93,000 Dr. $92,600 Dr. $92,600 O Choice A O Choice B O Choice C O Choice D O None of the above Price variance Cr. $6,400 Cr. $6,200 Dr. $6,200 Dr. $6,400 Quantity variance Dr. $3,000 Dr. $2,800 Cr. $2,800 Cr. $3,000 Accounts payable Cr. $89,600 Cr. $89,600 Cr. $96,000 Cr. $96,000
Meman
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product It manufactures. Direct materials (15 lbs. @ $4 per lb.) Direct labor (2 hrs. @ $15 per hr.) During May the company incurred the following actual costs to produce 8,100 units. Direct materials (125,300 lbs. @ $3.80 per lb.) Direct labor (20,400 hrs. @ $15.10 per hr.). AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ - Actual Quantity SQ - Standard Quantity = AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance. Round "Rate per hour" answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. 0 $60…

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