Heidi owns a fruit smoothie shop at the local mall Each smoothie requires 3/4 pound of mixed bemes, which are expected to cost $8 per pound during the summer months Shop employees are paid 50 per Vanable overhead consists of utilities and supplies The variable overhead rate is $0 03 per minute of DL time. Each smoothie should require 3 minutes (0:05 hours) of DL time 1. What is the standard cost of direct materials for each smoothie? 2. What is the standard cost of direct labor for each smoothie? 3. What is the standard cost of variable overhead for each smoothie? Compute the standard cost of each of the following inputs per smoothie (1) direct materials, (2) direct labor, (3) variable overhead Begin by selecting the formula to calculate the standard cost of input, then enter the amounts and calculate the standard cost for each input (Round your answers to the need cent) Standard cost of put

Heidi owns a fruit smoothie shop at the local mall Each smoothie requires 3/4 pound of mixed bemes, which are expected to cost $8 per pound during the summer months Shop employees are paid 50 per Vanable overhead consists of utilities and supplies The variable overhead rate is $0 03 per minute of DL time. Each smoothie should require 3 minutes (0:05 hours) of DL time 1. What is the standard cost of direct materials for each smoothie? 2. What is the standard cost of direct labor for each smoothie? 3. What is the standard cost of variable overhead for each smoothie? Compute the standard cost of each of the following inputs per smoothie (1) direct materials, (2) direct labor, (3) variable overhead Begin by selecting the formula to calculate the standard cost of input, then enter the amounts and calculate the standard cost for each input (Round your answers to the need cent) Standard cost of put

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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Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.50 feet of leather and predicts leather will cost $4.50 per foot. Suppose Perfect Pet made 100 collars during February. For these 100 collars, the company actually averaged 2.65 feet of leather per collar and paid $4.10 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 6. Calculate the direct materials price and quantity variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 6 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine…
Camping Supply Company has developed a new camping lamp that runs on solar power. The solar cells charge in the sun all day and then the lamp is ready to run when the sun goes down. The company has a standard costing system to help control costs and has established the following standards related to the new camping lamp: 1. Direct materials: 2 small solar cells per lamp at $0.50 per cell 2. Direct labour: 0.50 hours per lamp at $15 per hour During March, the company produced 4,000 camping lights. Production data for March are as follows: 1. Direct materials: 12,000 small solar cells were purchased at a cost of $0.45 per cell; 5,500 of these were still in inventory at the end of the month (there was no opening inventory). 2. Direct labour: 1,600 direct labour-hours were worked at a cost of $25,600. Required: 1. Compute the following variances for March: a. Direct materials price and quantity variances. b.Direct labour rate and efficiency variances. 2. Prepare a brief explanation of the…
Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,020 remotes is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: Cost 10 $ 65,130 $ 55,110 $ 30,060 $ 50,100 $ 200,400 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the remotes if $20,040 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,040 can be avoided and Frannie could rent out the factory space no longer in use for $20,040? Complete this question by entering your answers in the tabs below. Required 1 Required…
Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for $6.00 each. The company normally sells its shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows: Direct materials $2.00 Direct labor 0.50 Variable factory overhead 1.50 Fixed factory overhead 2.50 Total cost per unit $6.50 Should Piper Rose Boutique accept the special order made by the college? Proposal to Sell Polo Shirts to College Line Item Description Amount Differential revenue from accepting offer Differential variable costs of additional units Differential income (loss) from accepting the offer The order should be L
The Seweeather Co. produces sweaters. The company buys raw wool on the market and processes it into wool yarn from which the sweaters are woven. One spindle of wool yarn is required to produce one sweater. The costs and revenues associated with the sweaters are given below: Per sweater Selling price $30.00 Cost to manufacture: Raw materials: Buttons, threads, lining $ 2.00 Wool yarn 16.00 Total raw materials 18.00 Direct labor 5.80 Manufacturing overhead 8.70 32,50 Manufacturing profit (loss) $(2,50) Originally, all of the wool yard was used to produce sweaters, but in recent years a market has developed for the wool yarn itself. The yarn is purchased by other companies for use in…
A factory making soft toys uses a machine on its single production line. The machine costs £2,400 per month to hire plus £10 per hour it is used. Each week up to 1,000 toys are produced and the line works anywhere between 30 and 40 hours a week. Which of the following best describes the cost of hiring the machines? OA. A variable cost O B. A step cost OC. A semi-variable cost O D. A fixed cost
Dd2. How do you solve C for leather?
Colin O’Shea has a carpentry shop that employs 4 carpenters. Colin received an order for 1,000 coffee tables. The coffee tables have a round tabletop and four decorative legs. An offer for $500 per table was received. Colin found an unfinished round tabletop that he could buy for $50 each. The quantitative cost data to make the tabletop is shown below: Direct materials $10 Direct labor 35 Variable overhead 10 Fixed overhead 7 Required: What qualitative factors would Colin consider before he decides to buy the tabletop or make it? (Hint: No calculations required]
the company the working fairies make tablecloths but the whole tablecloth is rectangular and measures 85 cm by 90 cm the fabric needed to make a tablecloth costs $22.24 the tablecloth is made in two stages the first step consists of making the tablecloth and it lasts 15 minutes the second step is spread over 30 minutes for laying the lace ribbon around the tablecloth. the cost of this lace is $1.72\m the seamstresses at the hand of fairies are paid 12.36 an hour. paul the marketing manager suggests selling the tablecloths at the price of 45,994 the boss is furious because she wants to make a profit corresponding to 12% of the production cost of each tablecloth finds arguments to help paul convince his boss that the suggested price meets his expectations
HASF Glassworks makes glass flanges for scientific use Material cost $ 1 per flange and the glass blowers are paid a wage rate of 20 per hours a glass blower blows 10 flanges per hours. Fixed manufacturing costs for flanges are 20,000 per period. other nonmanufacturing cost associated with flanges are 10,000 per period and are fixed. 1-Find out total fixed cost2-Find out Variable cost per unit
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials ? $ 6.00 per yard $ ? Direct labor ? ? ? Variable manufacturing overhead ? $ 2 per direct labor-hour ? Total standard cost per unit $ ? Overhead is applied to production on the basis of direct labor-hours. During March, 400 backpacks were manufactured and sold. Selected information relating to the month’s production is given below: Materials Used Direct Labor Variable Manufacturing Overhead Total standard cost allowed* $ 9,120 $ 5,040 $ 960 Actual costs incurred $ 5,520 ? $ 2,620 Materials price variance ? Materials quantity variance $ 1,920 U Labor rate variance ? Labor efficiency variance ? Variable overhead rate variance ?…