Celebes Corporation makes a product with the following standard costs: Direct Materials Direct Labor Standard Quantity or Hours Standard Price or Rate 2.4 Kilos $16.25 per kilo 1.15 Hours $18.25 per hour The company reported the following results concerning this product in June. Actual Output Raw materials used in production Actual direct labor hours Purchases of raw materials Actual price of raw materials Actual direct labor rate 14,850 units 33,400 kilos 15,700 hours kilos per kilo per hour 26,100 $18.10 $17.75 a) What was materials price variance for June? b) What was materials quantity variance for June? c) What was the labor rate variance for June? d) What was the labor efficiency variance for June?

Celebes Corporation makes a product with the following standard costs: Direct Materials Direct Labor Standard Quantity or Hours Standard Price or Rate 2.4 Kilos $16.25 per kilo 1.15 Hours $18.25 per hour The company reported the following results concerning this product in June. Actual Output Raw materials used in production Actual direct labor hours Purchases of raw materials Actual price of raw materials Actual direct labor rate 14,850 units 33,400 kilos 15,700 hours kilos per kilo per hour 26,100 $18.10 $17.75 a) What was materials price variance for June? b) What was materials quantity variance for June? c) What was the labor rate variance for June? d) What was the labor efficiency variance for June?

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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Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. The actual variable overhead cost incurred during the period was $25,050. Assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead rate variance? Multiple Choice $1,650 F $1,650 U $1,050 U $1,050 F
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Question During December, Wards Company’s actual costs incurred in the production of 1,000 units were as follows:Direct labor: $34,500 ($5 per hour)Direct material: $16,000 ($2 per pound)The standards for one unit of Wards Company’s product are as follows:Direct labor: Quantity, 0.5 hour per unit Quantity, Rate, $4.5 per hour Price, Direct material: 0.75 pounds per unit, $1.5 per poundRequired:1. Compute the direct-material price and quantity variances. Indicate whether each variance is favorable or unfavorable. Show your calculations. 2. Compute the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Show your calculations.
6
Miguez Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Standard Cost Hours Rate Per Unit Direct materials 2.4 liters $ 7.10 per liter $17.04 $23.00 per hour $ 2.10 per hour Direct labor 0.5 hours $11.50 Variable overhead 0.5 hours $ 1.05 The company budgeted for production of 2,700 units in September, but actual production was 2,600 units. The company used 5,540 liters of direct material and 1,690 direct labor-hours to produce this output. The company purchased 5,900 liters of the direct material at $7.30 per liter. The actual direct labor rate was $25.10 per hour and the actual variable overhead rate was $1.80 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:
Subject: acounting
Subject: acounting
Help Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Mercon Wurcon Direct materials cost per unit $ 10.00 $ 8.00 Direct labor cost per unit $ 3.00 $ 3.75 Direct labor-hours per unit 0.20 0.25 Number of units produced 10,000 40,000 These products are customized to some degree for specific customers. Required: 1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as…
Miguez Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 2.3 liters $ 7.00 per liter $ 16.10 Direct labor 0.7 hours $ 22.00 per hour $ 15.40 Variable overhead 0.7 hours $ 2.00 per hour $ 1.40 The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 labor rate variance for September is: Multiple Choice $3,675 F $3,528 U $3,528 F $3,675 U
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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.7 ounces $ 2.00 per ounce $ 11.40 Direct labor 0.2 hours $ 11.00 per hour $ 2.20 Variable overhead 0.2 hours $ 6.00 per hour $ 1.20 The company reported the following results concerning this product in June. Originally budgeted output 3,900 units Actual output 3,500 units Raw materials used in production 22,500 ounces Purchases of raw materials 21,800 ounces Actual direct labor-hours 530 hours Actual cost of raw materials purchases $ 42,600 Actual direct labor cost $ 13,900 Actual variable overhead cost $ 3,850 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 June is: