d. During June 2019, Maju Berhad experimented with fewer senior technicians and more ofassistant technicians in order to save costs of production. Advise Maju Berhad on whetherto continue with the new labour mix policy.Calculate the variable overhead expenditure and efficiency variance for month of June2019.е. Maju Berhad manufactures various chemicals compounds for industrial use in domestic andoverseas market. One of its compound, called Sinar, is prepared using an elaborated distillingprocess and was sold in the market at the price of RM110 per unit. The company'smanagement is anxious to determine the efficiency of Sinar production activities for the monthof June 2019. The standard cost card for compound Sinar is given as follows:RM50.00Direct materials (2.5 kg x RM20.00/kg)Direct labor (1.4 dlh at RM12.50/dlh)Variable overhead (1.4 dlh at RM3.50/dlh)17.504.90Standard cost per unit72.40During the month of June 2019, Maju Berhad manufactured 3,750 units of product Sinar. Atotal of 12,000 kg of raw materials were purchased during the month at a total cost ofRM225,000. There were no beginning inventories, but there were 2,500 kg of raw materialsremained in ending inventories at the end of June 2019.The company employs 35 lab technicians to work on the production of Sinar. In the month ofJune 2019, each technician has worked an average of 160 hours at an average wage rate ofRM12 per direct labour hour. The variable manufacturing overheads are absorbed to productSinar on the basis of standard direct labour hours. The actual variable overhead costs incurredduring the month is RM18,200.Required:

Name: d. During June 2019, Maju Berhad experimented with fewer senior techn
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: d. During June 2019, Maju Berhad experimented with fewer senior technicians and more ofassistant technicians in order to save costs of production. Advise Maju Berhad on whetherto continue with the new labour mix policy.Calculate the variable overhea

Below is the calculation for part d & part e

Business

Accounting

d. During June 2019, Maju Berhad experimented with fewer senior technicians and more of assistant technicians in order to save costs of production. Advise Maju Berhad on whether to continue with the new labour mix policy. Calculate the variable overhead expenditure and efficiency variance for month of June 2019.

d. During June 2019, Maju Berhad experimented with fewer senior technicians and more of assistant technicians in order to save costs of production. Advise Maju Berhad on whether to continue with the new labour mix policy. Calculate the variable overhead expenditure and efficiency variance for month of June 2019.

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

Carica Company is a manufacturer with two production departments (Machining andAssembly) as well as two support departments (Materials Requisitions and Utility Services).For the last quarter of 2020, Carica’s cost records indicate the following: Required: 1. Compare and explain differences in the support-department costs allocated to eachproduction department. 2. What approaches might be used to decide the sequence in which to allocate supportdepartments when using the step-down method?
The May 2024 revenue and cost information for Boise Outfitters, Inc. follows: 1(Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Boise Outfitters, Inc. Standard Cost Income Statement For the Month Ended May 31, 2024 (1) Sales Revenue $540,000 (2) Cost of Goods Sold at standard $344,000 (3) Manufacturing Cost Variances: (4) Direct Materials Cost Variance (5) Direct Materials Efficiency Variance (6) Direct Labor Cost Variance 4,800 (7) Direct Labor Efficiency Variance (8) Variable…
. Horace Company manufactures a professional-grade vacuum cleaner and began operations in 2017. For 2017, Horace budgeted to produce and sell 25,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2017 are given in the attactched picture: Q.Horace’s management is considering implementing a bonus for its supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Horace management make to improve such a plan? Explain briefly.
ComplexChem, Inc., produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August 2020: LOADING... (Click the icon to view the data.) Requirement Fill in the blanks. Use F for favorable and U for unfavorable: LOADING... (Click the icon to view the table.) (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) Variable (1) Spending variance (2) Efficiency variance (3) Production-volume variance (4) Flexible-budget variance (5) Underallocated (overallocated) manufacturing overhead Fixed Choose from any list or enter any number in the input fields and then continue to the next question. Data Table…
Using a flexible budgeting approach how do I prepare a performance report for the passion department for April 2016, compare an actual overhead cost for 4600 hours. Separate overhead cost into variable and fixed components and show the amounts of any variances between actual budgeted amounts.
Maria is studying the working papers from her client's 2025 income statement because her manager wants her to reconstruct that same income statement without the benefit of first seeing the finished product. She knows the client uses standard costing within its accounting system, but she has to figure out which inventory costing method it uses. The working paper shows the following details. No other variances were reported, and the prior year per-unit costs were the same as the 2025 per-unit costs. Gross margin Sales volume Budgeted production Beginning FG Inventory Ending FG Inventory Fixed-MOH volume variance (unfavorable) Operating income Sales $726 220 units 250 units 27 units 40 units $374 $640 $13,420
During March 2022, Vaughn Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Actual Standard Job Number Hours Costs Hours Costs Total Variance A257 220 $5,500 226 $5,650 $150 F A258 470 13,160 450 11,250 1,910 U A259 320 8,320 318 7,950 370 U A260 100 2,400 92 2,300 100 U Total variance $2,230 U Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent.Prepare a report for the factory supervisor on direct labor cost variances for March.
5 Diva, Inc. is a privately held furniture manufacturer. For August 2020, Diva had the following standards for one of its products, a wicker chair: (Click the icon to view the standards.) (Click the icon to view the costs and variances for actual production "option 1".) Direct Materials Control Work-in-Process Control Wages Payable Control Direct Materials Price Variance Direct Mfg. Labor Price Variance Accounts Payable Control (Click t Requireme Prepare jou two options Journal Entry Direct Materials Efficiency Variance Direct Mfg. Labor Efficiency Variance Option 2. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any journal en For August 2020, Diva had the following costs and variances for actual production of 2,500 chairs, 7,100 square yards of input purchased and used: Option 1: Actual production Direct materials Direct manufacturing labor $ Actual costs Budgeted price 38,340 $ 9,870 Direct materials…
During March 2020, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Actual Standard Job Number Hours Costs Hours Costs Total Variance A257 220 $5,280 226 $5,424 $144 F A258 430 11,610 411 9,864 1,746 U A259 305 7,625 303 7,272 353 U A260 100 2,200 94 2,256 56 F Total variance $1,899 U Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent.
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,100) Wages and salaries ($2,500 + $0.35q) Shipping ($0.60q) Utilities ($1,210) For the Month Ended August 31 Other ($400 + $0.019) Total expenses Net operating income Actual pounds Revenue The actual results for August were as follows: Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income 7,300 $ 30,295 2,555 3,100 5,055 4,380 1,210 473 16,773 $ 13,522 7,300 $ 26,600 2,725 2,960 5,465 4,110 1,020 1,093 17,373 $ 9,227
Harlow Parts produces a single product at its Superior Plant. The master budget for July follows: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit The following operating income statement shows the actual results for July: Quantity (units) Revenue Harlow Parts Superior Plant Operating Results (For July) Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin 8,220 $ 1,561,800 591,840 98,640 $ 871,320 214,000 372,000 $ 285,320 Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit 9,620 $ 1,765,800 788,394 111, 240 $ 866,166 225,040 382,000 $ 259, 126
The manager of the main laboratory facility at UrbanFit Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed I that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. (Click the icon to view the data.) Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,500 lab tests are performed next month. Let's begin by determining the formula that is used to calculate the variable cost (slope). Data table Variable cost (slope) Number of Lab Month Tests Performed Total Laboratory Overhead Costs January 2,800 $21,500 February 2,600 $22,700 March 3,100 $27,900 April.... 3,550 $31,400 May 3,700 $28,500 June.. 1,200 $19,500 July 1,400 $14,500 Print Done X