▼PasteVJ21HomeClipboard FSXLB-insentCalibriReadyvage LayFontB11vBIU A EX ✓ fxVromukasYA A2223Direct materials price variance =Direct materials quantity variance =2425 Total direct materials cost variance =262728293031323334353637==FГDataCAlignmentProblem 1 of 2 Problem 2 of 2LargeSmall3 feet at $0.20 per foot 1.5 feet at $0.20 per foot1 at $0.051 at $0.05A1 Problem 1 of 22 Ed Co. manufactures two types of O rings, large and small. Both rings use the same material3 but require different amounts. Standard materials for both are shown.4ReviewDollar amount of varianceY56Rubber7 Connector891011121314151617 At the beginning of the month, Ed Co. bought 25,000 feet of rubber for $6,875. The company18 made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber.19MDHelpGeneral$ % 9vNumberEEConditional FormattiFormat as Table -Cell Styles20 A. Calculate the following variances and indicate whether the variance is favorable or unfavorable21 (show all calculations in Excel, record your variance answers in the grey cells and favorable/unfavorable in the blue cells)Favorable orUnfavorableF4StylesGH

The company's efficiency and effectiveness in using materials are gauged by the computation of…

Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. 1 B Rubber Connector 5 5 Large Small 3 feet at $0.20 per foot 1.5 feet at $0.20 per foot 1 at $0.05 1 at $0.05 At the beginning of the month, Ed Co. bought 25,000 feet of rubber for $6,875. The company 3 made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. 9 DA. Calculate the following variances and ndicate whether the variance is favorable or unfavorable (show all calculations in Excel, record your variance answers in the grey cells and favorable/unfavorable in the blue cells, Favorable or Unfavorable 2 3 Direct materials price variance = Direct materials quantity variance = 4 5 Total direct materials cost variance = 6 7 8 9 Dollar amount of variance

Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. 1 B Rubber Connector 5 5 Large Small 3 feet at $0.20 per foot 1.5 feet at $0.20 per foot 1 at $0.05 1 at $0.05 At the beginning of the month, Ed Co. bought 25,000 feet of rubber for $6,875. The company 3 made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. 9 DA. Calculate the following variances and ndicate whether the variance is favorable or unfavorable (show all calculations in Excel, record your variance answers in the grey cells and favorable/unfavorable in the blue cells, Favorable or Unfavorable 2 3 Direct materials price variance = Direct materials quantity variance = 4 5 Total direct materials cost variance = 6 7 8 9 Dollar amount of variance

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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Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each product requires time on a single machine. The machine has a monthly capacity of 540 hours. Total market demand for the two products is limited to 2,000 units of TI-12 and 1,000 units of TI-28 monthly. Talbot is currently producing and selling 1,500 TI-12 models and 780 TI-28 models each month. Cost and machine-usage data for the two products are shown in the following spreadsheet, which analysts at Talbot use for production planning purposes: Price Less variable costs per unit Material Labor Overhead Contribution margin per unit Fixed costs Manufacturing Marketing and administrative Machine hours per unit Machine hours used Machine hours available Quantity produced Maximum demand Profit TI-12 $ 80 Required A Required B 23 29 8 $ 20 0.1
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Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow:Selling price per unit on the intermediate market $ 80Variable costs per unit $ 62Fixed costs per unit (based on capacity) $ 8Capacity in units 25,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 5,000 speakers per year. It has received a quote of $77 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits.Required: 1. Assume the Audio Division is selling 22,500 speakers per year to outside customers. A. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? B. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? C. What is the…
Clone Computers assembles and packages personal computer systems from brand-name components. Its Home Office PC System is assembled from components costing $1400 per system and sells for $2000. Labour costs for assembly are $100 per system. This product line's share of overhead costs is $10,000 per month. a. How many Home Office systems must be sold each month to break even on this product line? b. What will be the profit or loss for a month in which 15 Home Office systems are sold?
Each year, Giada Company produces 20,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.39. The unit cost is: Direct materials $0.83 Direct labor 0.34 Variable overhead 0.13 Fixed overhead 2.55 Total unit cost $3.85 1. What are the alternatives for Giada Company? a. Make the part in house b.Buy the part externally c.Make the part in house or buy the part externally d.None 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. a.Direct materials, direct labor and variable and fixed overhead b.Direct materials, direct labor and variable overhead c.Direct materials, direct labor and fixed overhead d.None List the relevant cost(s) of external purchase. a.Purchase price b.Sales price c.Material price d.None 3. Which alternative is more cost effective and by how much? a. Making the part in house b. Buying the part from the external supplier by $___________ 4. What if…
Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each product requires time on a single machine. The machine has a monthly capacity of 540 hours. Total market demand for the two products is limited to 2,000 units of TI-12 and 1,000 units of TI-28 monthly. Talbot is currently producing and selling 1,500 TI-12 models and 780 TI-28 models each month. Cost and machine-usage data for the two products are shown in the following spreadsheet, which analysts at Talbot use for production planning purposes: Price Less variable costs per unit Material Labor Overhead Contribution margin per unit Fixed costs Manufacturing Marketing and administrative Machine hours per unit Machine hours used Machine hours available Quantity produced Maximum demand Profit Required A Required B TI-12 Model TI-28 Model TI-12 $ 80 23 29 8 $ 20 units units 0.1
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