Hilary owns a fruit smoothie shop at the local mall. Each smoothie requires 1/2pound of mixed berries, which are expected to cost $5.50 per pound during thesummer months. Shop employees are paid $7.00 per hour. Variable overheadconsists of utilities and supplies, with a variable overhead rate of $0.12 per minuteof direct labor time. Each smoothie should require 4 minutes of direct labor time.Determine the following standard costs per smoothie:Direct materials costDirect labor costVariable overhead cost

Step 1: Definition of Standard CostsStandard Costs refer to the estimated costs assigned to…

Answered: Hilary owns a fruit smoothie shop at…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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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 hour 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 Dt. 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 matorials, (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 nearest cont) Standard cost of input
Summer company manufactures beach chairs. $ 4.00 of direct materials are needed for each chair. Labor is $ 15 an hour. The company manufactures 3 chairs per hour. Indirect costs are $ 9.00 per hour. Commissions to sellers are $ 2.00 per unit sold. The cost of a chair will be:
if the employees make 15$/hour what is the toral cost of trianing?
Oak Valley Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $8 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are $30 per hour. Payroll costs are $3.00 per hour, and benefits are $5 per hour. How much is the direct materials standard cost per square foot? A. $8.20 B. $11.20 C. $13.20 D. $8.00
Bethany Liang delivers parts for several local auto parts stores. She charges clients $3.65 per mile driven. She has determined that if she drives 2,800 miles in a month, her average operating cost is $3.45 per mile. If Bethany drives 5,600 miles in a month, her average operating cost is $2.30 per mile. Required: 1. Using the high-low method, determine Bethany's variable and fixed operating cost components. 2. Complete the contribution margin income statement for the business last month, when Bethany drove 3,080 miles. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Bethany's variable and fixed operating cost components. Note: Round your cost per mile answer to 2 decimal places. Variable cost per mile driven Fixed cost
Bethany Liang delivers parts for several local auto parts stores. She charges clients $3.28 per mile driven. She has determined that if she drives 2,700 miles in a month, her average operating cost is $3.08 per mile. If Bethany drives 5,400 miles in a month, her average operating cost is $2.20 per mile. Required: 1. Using the high-low method, determine Bethany's variable and fixed operating cost components. 2. Complete the contribution margin income statement for the business last month, when Bethany drove 2,970 miles. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Bethany's variable and fixed operating cost components. Note: Round your cost per mile answer to 2 decimal places. Variable cost per mile driven Fixed cost $ 0.01
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Use the information provided to calculate standard costs: To make one switch it takes 15 feet of plastic-coated copper wire and 0.4 pounds of plastic material. The plastic material can usually be purchased for $19 per pound, and the wire costs $2.68 per foot. The labor necessary to assemble a switch consists of two types. The fırst type of labor is assembly, which takes 3.7 hours. These workers are paid $29 per hour. The second type of labor is finishing, which takes 3.0 hours. These workers are paid $25 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.06 per labor hour. The fixed overhead rate is $14.70 per hour. What is the total standard cost for direct materials? Round to the nearest penny, two decimal places.
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Waterway Nail Salon Limited is trying to determine the standard labour cost of a manicure. The following data has been collected after analyzing one month's work: actual time spent on a manicure 1 hour; hourly wage rate $12; payroll taxes 5% of wage rate; set-up and downtime 8% of actual labour time; cleanup and rest periods 17% of actual labour time. Your answer is correct. Determine the standard direct labour hours per manicure. (Round calculations and final answer to 2 decimal places, e.g. 15.25.) Standard direct labour hours per manicure (b) eTextbook and Media 1.25 hours Attempts: 1 of 2 used Determine the direct labour cost per direct labour hour. (Round calculations and final answer to 2 decimal places, e.g. 15.25.) Direct labour cost per direct labour hour eTextbook and Media Save for Later +A SUPPORT Attempts: 0 of 2 used Submit Answer
Use the information provided to calculate standard costs: To make one switch it takes 17 feet of plastic-coated copper wire and 0.2 pounds of plastic material. The plastic material can usually be purchased for $18 per pound, and the wire costs $2.93 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.8 hours. These workers are paid $29 per hour. The second type of labor is finishing, which takes 2.1 hours. These workers are paid $27 per hour. Overhead is applied using labor hours. The variable overhead rate is $14 per labor hour. The fixed overhead rate is $14.25 per hour. What is the total standard cost for direct labor? Round to the nearest penny, two decimal places.

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