Dd.65. Eminem, Inc. manufactures music CDs. At the start of 2021, Eminem planned to produce 110,000 CDs for which thestandard cost for each CD is:Plastic (0.25 pounds at $6.00 per pound)Labor (0.10 hour at $12.00 per hour)Overhead ($0.70 fixed and $0.90 variable)$1.501.201.60$4.30TotalOverhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the pointof purchase. The following information summarizes Eminem's results for 2021:Actual production112,000 CDsActual variable overhead$91,000Actual fixed overhead$85,500How much is the controllable overhead variance for 2021?a) $4,400 favorableb) $1,300 favorablec) $1,600 favorabled) $5,000 favorablee) $1,800 favorable

Formula Overhead volume variance = Applied fixed overhead - Actual fixed…

Answered: Eminem, Inc. manufactures music CDs. At…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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Eminem, Inc. manufactures music CDs. At the start of 2021, Eminem planned to produce 110,000 CDs for which the standard cost for each CD is: Plastic (0.25 pounds at $6.00 per pound) $1.50 Labor (0.10 hour at $12.00 per hour) 1.20 Overhead ($0.70 fixed and $0.90 variable) 1.60 Total $4.30 Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information       summarizes   Eminem’s results for 2021: Actual production 112,000 CDs Actual variable overhead $91,000 Actual fixed overhead $85,500 How much is the controllable overhead variance for 2021?                       $4,400 favorable $1,300 favorable $1,600 favorable $5,000 favorable $1,800 favorable
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce)            $4.55 Labor (0.30 hour at $12.00 per hour)                       3.60 Overhead                                                                  2.40 Total                                                                      $10.55 At the start of 2021, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $64,000 and the variable overhead costs are budgeted at $1.60 per case. The following information summarizes the results for 2021: Actual production, 81,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce)            $4.55 Labor (0.30 hour at $12.00 per hour)                       3.60 Overhead                                                                  2.70 Total                                                                      $10.85 At the start of 2021, Scotch Brand planned to produce 20,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $18,000 and the variable overhead costs are budgeted at $1.80 per case. The following information summarizes the results for 2021: Actual production, 21,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
Assume that Laptop parts assembly company producing 650 laptops during 2019. The management has drawn up a standard cost plan as follows: The standard quantity of direct material is 30 parts, natural loss of parts 3%, damaged parts 1%, the standard price is $ 8/part. While the actual units used are 14,560 parts, each part $ 6. The standard direct labor time is 8 hours, and the standard number of workers is 10. Standard damaged rate is 5%, standard production stops 5%, standard work break is 1.5 hour, standard direct labor wage is 3 plus 1 as a bonus. While in fact, the direct labor hour is 31,325, the actual wage is the same as the standard price but without the bonus. The application standard rate is direct material quantity. And the application standard rate is $ 4/ part. While in actuality, the total overhead cost is $43,000. Requirements; (a) Calculate the standard and actual costs (b) Analyze the deviation for each element and provide a comment in the result of deviation.
Fast Track Auto produces and sells an auto part for S65 per unit. In 2020, 125,000 parts were produced and 80,000 units were sold. Other information for the year includes: Direct Materials $20 per unit Direct manufacturing labor $5 per unit Variable manufacturing costs $3 per unit Sales commissions $6 per part Fixed Manufacturing costs $790,000 per year Administrative expenses, all fixed $320,000 per year What is the inventoriable cost per unit using absorption costing? A. $28.00 B. $36.88 C. $34.32 D. $34.00
Assume that Laptop parts assembly company producing 350 laptops during 2019. The management has drawn up a standard cost plan as follows: The standard quantity of direct material is 30 parts, natural loss of parts 3%, damaged parts 1%, the standard price is $ 8/part. While the actual units used are 14,560 parts, each part $ 6. The standard direct labor time is 8 hours, and the standard number of workers is 10. Standard damaged rate is 5%, standard production stops 5%, standard work break is 1.5 hour, standard direct labor wage is 3 plus 1 as a bonus. While in fact, the direct labor hour is 31,325, the actual wage is the same as the standard price but without the bonus. The application standard rate is direct material quantity. And the application standard rate is $ 4/ part. While in actuality, the total overhead cost is $43,000. Requirements; 1- Calculate the standard and actual costs 2- Analyze the deviation for each element and provide a comment in the result of deviation.
Muspest Supplies is currently evaluating the cost of manufacturing some of the components utilised in their products. Currently the company expects to need 6 000 parts each month. A supplier of the part has been identified and the total cost of purchasing the parts on a monthly basis would be $97 000. In analysing the part costs, the direct labour and materials cost would be $64 000 and the variable overheads would be $22 000.Based only on the relevant cost per unit, which would be the preferred option of Muspest Supplies?HD EDUCATIONA. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case, the best option would be to commence purchasing the part.B. Unit costs to produce the part would be $10.67 with the unit cost to purchase of $ 16.17. In this case, the best option would be to continue to make the part.C. None of the other answers D. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case,…
More Martinez Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2022 for each baseball bat: Standard Quantity Standard Price Unit Standard Cost 1. 2. Direct Materials 2 Pounds (Aluminum) 3, $4.00 $8.00 4. Direct Labor 1/2 hour $10.00 $5.00 In 2022, the company planned to produce 121,800 baseball bats at a level of 60,900 hours of direct labor. Manufacturing Overhead Actual results for 2022 are presented below: Direct materials purchases were 224,500 pounds of aluminum which cost $931,675. Direct materials used were 224,500 pounds of aluminum. Direct labor costs were $592,900 for 60,500 direct labor hours actually worked. Total manufacturing overhead was $370,000. 1/2 hour $6.00 $3.00
Isabella Company has developed the following standard costs for its product for 2019: ISABELLA COMPANY Standard Cost Card Product A Cost Element Standard Quantity × Standard Price = Standard Cost Direct materials 4 pounds $3 $12 Direct labor 3 hours 8 24 Manufacturing overhead 3 hours 4 12 $48 The company expected to produce 30,000 units of Product A in 2020 and work 90,000 direct labor hours. Actual results for 2020 are as follows: 31,000 units of Product A were produced. Actual direct labor costs were $746,200 for 91,000 direct labor hours worked. Actual direct materials purchased and used during the year cost $346,500 for 126,000 pounds. Actual variable overhead incurred was $155,000 and actual fixed overhead incurred was $205,000. Instructions Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or unfavorable. (a) Materials quantity variance. (b) Total direct labor variance. (c) Direct labor…
Great Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using 142,000 square feet of extruded vinyl purchased at $1.20 per square foot. Production required 440 direct labor hours that cost $14.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.25 per square foot. The labor standard was 0.027 direct labor hour per fender, at a standard cost of $13.50 per hour. Read the requirement. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ= actual quantity, FOH = fixed overhead; SC standard cost; SQ = standard quantity.) Direct materials cost variance Direct labor cost variance Formula Variance Requirement Compute the cost and efficiency, variances for direct materials and direct labor Does the pattern of…
More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2019 for each baseball bat: Direct Materials Direct Labor Manufacturing Overhead Standard Quantity 2 Pounds (Aluminum) 1/2 hour 1/2 hour Standard Price $4.00 $10.00 $6.00 Unit Standard Cost $8.00 $5.00 $3.00 In 2019, the company planned to produce 120,000 baseball bats at a level of 60,000 hours of direct labor. Actual results for 2019 are presented below: 1. Direct materials purchases were 246,000 pounds of aluminum which cost $1,020,900. 2. Direct materials used were 220,000 pounds of aluminum. 3. Direct labor costs were $575,260 for 58,700 direct labor hours actually worked. 4. Total manufacturing overhead was $352,000. 5. Actual production was 114,000 baseball bats. Compute the following variances and identify whether the variance is favorable or unfavorable? 1. Direct Materials Price $ 2. Direct Materials Quantity $ 3.…
At the end of June 2019, Ash Design has spent RM 320,000 on 80,000 meters of fabric in the production of 20,000 dolls. The production manager is concerned that they are paying more than the company's standard RM 2 per meter fabric and is fully aware of the standard requirement of 8 meters of fabric per doll. The company spent RM 450,000 for 90,000 direct labor hours in the production of 20,000 dolls. The standard labor per doll is 4 hours at an hourly rate of RM 4. A review of Ash Design's 6-months performance revealed that the company had produced 20,000 dolls and incurred RM 90,000 of variable production overheads and worked 90,000 direct labor hours. The standard variable production overhead rate is RM 0.75 per direct hour for each doll and requires 4 standard direct labor hours. Ash Design budgeted and actual fixed overhead incurred for the last six months are RM 180,000 and RM 152,000 respectively. The annual budgeted production volume for Ash Design is 50,000 dolls. Based on the…

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