nd 23 ExamIncome Statement with VariancesDvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 per pound. The company produced 1,000units that required 4,500 pounds, which were purchased at $3.00 per pound. The product also requires 3 standard hours per unit at a standard hourlyrate of $17 per hour. The 1,000 units produced required 2,800 hours at an hourly rate of $16.50 per hour. In addition, the standard variable overheadcost per unit is $1.40 per hour and the actual variable factory overhead was $4,000. Finally, the standard fixed overhead cost per unit is $0.60 per hourat 3,500 hours, which is 100% of normal capacity.Prepare an income statement through gross profit for Dvorak Company for the month ended July 31. Assume that Dvorak sold 1,000 units at $90 perunit. If an amount box does not require an entry, leave it blank or enter "0".Dvorak CompanyIncome Statement Through Gross ProfitFor the Month Ended July 31SalesCost of goods sold-at standardGross profit-at standardUnfavorableFavorablePlus variance adjustments to gross profit-at standard:Direct materials priceDirect materials quantityDirect labor rateDirect labor timeFactory overhead controllablePrevious10/10 items

Name: nd 23 ExamIncome Statement with VariancesDvorak Company produces a pr
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: nd 23 ExamIncome Statement with VariancesDvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 per pound. The company produced 1,000units that required 4,500 pounds, which were purchased at $3.00 per

Answered: Image /qna-images/answer/a9f845a2-f9dd-4972-aadb-8435c4007d2b.jpg

Business

Accounting

Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 pe units that required 4,500 pounds, which were purchased at $3.00 per pound. The product also requires 3 star rate of $17 per hour. The 1,000 units produced required 2,800 hours at an hourly rate of $16.50 per hour. In cost per unit is $1.40 per hour and the actual variable factory overhead was $4,000. Finally, the standard fixe at 3,500 hours, which is 100% of normal capacity. Prepare an income statement through gross profit for Dvorak Company for the month ended July 31. Assume unit. If an amount box does not require an entry, leave it blank or enter "0". Dvorak Company Income Statement Through Gross Profit For the Month Ended July 31 Sales Cost of goods sold-at standard Gross profit-at standard Unfavorable Favorable Plus variance adjustments to gross profit-at standard: Direct materials price Direct materials quantity Direct labor rate Direct labor time Factory overhead controllable

Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 pe units that required 4,500 pounds, which were purchased at $3.00 per pound. The product also requires 3 star rate of $17 per hour. The 1,000 units produced required 2,800 hours at an hourly rate of $16.50 per hour. In cost per unit is $1.40 per hour and the actual variable factory overhead was $4,000. Finally, the standard fixe at 3,500 hours, which is 100% of normal capacity. Prepare an income statement through gross profit for Dvorak Company for the month ended July 31. Assume unit. If an amount box does not require an entry, leave it blank or enter "0". Dvorak Company Income Statement Through Gross Profit For the Month Ended July 31 Sales Cost of goods sold-at standard Gross profit-at standard Unfavorable Favorable Plus variance adjustments to gross profit-at standard: Direct materials price Direct materials quantity Direct labor rate Direct labor time Factory overhead controllable

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

Sheridan Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage is $12 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and employee benefits average $2.4 per hour. Standard production time is 1.5 hour per unit and the allowance for rest periods and setup is 0.70 hours and 0.10 hours. respectively. The standard direct labor rate per hour is
Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:Cost Driver Dollar Amount per UnitDirect materials $15Direct labor 20Factory overhead (25% of direct labor) 5Total cost per unit 40If Fremont Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 5% of the direct labor costs. a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. b. Based on the data presented, would it be advisable to make the carrying cases or to continue buying them? Explain in your own words.
Cotton Corp. currently makes 12,500 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $ 24.00 Direct labor 20.00 Variable manufacturing overhead 19.00 Fixed manufacturing overhead 9.00 Total unit cost $ 72.00 An outside supplier has offered to provide Cotton Corp. with the 12,500 subcomponents at an $76.00 per unit price. Fixed overhead is not avoidable. If Cotton Corp. accepts the outside offer, what will be the effect on short-term profits? Multiple Choice no change $78,750 increase $112,500 increase $162,500 decrease
Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 10 Direct labor 25 20 Variable manufacturing overhead 12 10 Traceable fixed manufacturing overhead 21 23 Variable selling expenses 17 13 Common fixed expenses 20 15 Total cost per unit $ 125 $ 91 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 1. Assume that Cane expects to produce and sell 55,000 Alphas during the current year. A supplier has offered to manufacture and deliver 55,000 Alphas to Cane for a price of $100 per unit. What is the financial…
Northern Sparks. sells sparkplug for $48 each. The direct materials cost per unit is $15 and the direct labor is 0.50 hours at a rate of $28 per hour. Fixed manufacturing overhead is budgeted at $72,500 per period. Calculate the break even point in units. (Remember: You cannot sell partial units).
CengageNOWv21Online teachin X ilm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator=assignment-take&inprogress-false Calculate Payroll K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Administrator Computer Programmer Consultant $50 per hour $36 per hour $2,510 per week Regular earnings rate 1.5 times hourly rate 2 times hourly rate Not applicable Overtime earnings rate $500 $253 $930 Federal income tax withheld For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 52 hours and the administrator worked 61 hours. Assume further that the social security tax rate was 6%, and the Medicare tax rate was 1.5 %. Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are…
Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $78 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $52 Direct labor 20 Factory overhead (40% of direct labor) 8 Total cost per unit $80 If Fremont Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 10% of the direct labor costs. Required: a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those…
Cozy, Inc., manufactures small and large blankets. It estimates $389,225 in overhead during the manufacturing of 97,902 small blankets and 73,121 large blankets. What is the predetermined overhead rate per machine hour if a small blanket takes 7 machine hour and a large blanket takes 9 machine hours? Round to the nearest penny, two decimal places.
Concord Corporation produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $13 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.30 per hour, and employee benefits average $2.60 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct labor rate per hour is a. $16.90. b. $13.30. c. $17.20. d. $13.00.
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 4 pounds at $10 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at so per hour Total standard cost per unit $ 84 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs. a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct laborers worked 62,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $390,600 References Foundational 10-1 (Algo) Required: 1. What raw materials cost would be included in the company's planning budget for March?