Gilder Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Standard Cost Per Hours Rate Unit Direct materials 7.90 grams $10.00 per gram $79.00 Direct labor 0.15 hours $28.00 per hour $4.20 Variable 0.15 hours $8.00 per hour $1.20 overhead The company reported the following results concerning this product in June: Originally budgeted output 4,800 units Actual output 5,040 units Raw materials used in production 37,492 grams Purchases of raw materials 41,792 grams Actual direct labor-hours 670 hours Actual cost of raw materials purchases $392,840 Actual direct labor cost Actual variable overhead cost $18,164 $3,028 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 materials quantity variance for June is: a. $240 U b. $22,980 F c. $23,240 U d. $23,240 F

Gilder Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Standard Cost Per Hours Rate Unit Direct materials 7.90 grams $10.00 per gram $79.00 Direct labor 0.15 hours $28.00 per hour $4.20 Variable 0.15 hours $8.00 per hour $1.20 overhead The company reported the following results concerning this product in June: Originally budgeted output 4,800 units Actual output 5,040 units Raw materials used in production 37,492 grams Purchases of raw materials 41,792 grams Actual direct labor-hours 670 hours Actual cost of raw materials purchases $392,840 Actual direct labor cost Actual variable overhead cost $18,164 $3,028 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 materials quantity variance for June is: a. $240 U b. $22,980 F c. $23,240 U d. $23,240 F

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 21E: Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
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Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 6.5 ounces 0.2 hours 0.2 hours The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The labor rate variance for June is: Standard Price or Rate $ 2.00 per ounce $23.00 per hour $ 6.00 per hour 2,700 units 2,800 units 19,380 ounces 21,400 ounces 500 hours $ 40,660 $ 12,050 $ 3,100 Standard Cost Per Unit $ 13.00 $ 4.60 $ 1.20 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
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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 5.5 ounces $ 2.00 per ounce $ 11.00 Direct labor 0.6 hours $ 11.00 per hour $ 6.60 Variable overhead 0.6 hours $ 8.00 per hour $ 4.80 The company reported the following results concerning this product in June. Originally budgeted output 4,100 units Actual output 4,100 units Raw materials used in production 20,500 ounces Purchases of raw materials 21,600 ounces Actual direct labor-hours 4,800 hours Actual cost of raw materials purchases $ 42,800 Actual direct labor cost $ 14,100 Actual variable overhead cost $ 4,050 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 materials price variance for June is:
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