I need answer of this question general accounting Hurren Corporation makes a product with the following standard costs:Standard Quantity orHoursDirect materials 5.6 gramsDirect labor1.9 hoursVariable1.9 hoursoverheadStandard Price orRateStandard Cost PerUnit$4.00 per gram$22.40$19.00 per hour$36.10$4.00 per hour$7.60The company reported the following results concerning this product in June.Originally budgeted output5,400 unitsActual output5,300 unitsRaw materials used in production28,500 gramsActual direct labor-hours5,700 hoursPurchases of raw materials33,000 gramsActual price of raw materials purchased $4.10 per gramActual direct labor rateActual variable overhead rate$19.90 per hour$3.70 per hourThe company applies variable overhead on the basis of direct labor-hours. The directmaterials purchases variance is computed when the materials are purchased.The materials price variance for June is:a. $3,300 Ub. $2,872 Fc. $2,872 Ud. $3,300 F

Step 1: Define Material VarianceThe difference between the actual and budgeted material costs is…

Answered: Hurren Corporation makes a product with…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Huron Company produces a commercial cleaning compound known as Zoom. The direct materialsand direct labor standards for one unit of Zoom are given below:Standard Quantity Standard Price Standardor Hours or Rate CostDirect materials . . . . . 4.6 pounds $2.50 per pound $11.50Direct labor. . . . . . . . . 0.2 hours $12.00 per hour $2.40During the most recent month, the following activity was recorded:a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.b. All of the material purchased was used to produce 4,000 units of Zoom.c. 750 hours of direct labor time were recorded at a total labor cost of $10,425.Required:1. Compute the direct materials price and quantity variances for the month.2. Compute the direct labor rate and effi ciency variances for the month.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials anddirect labor standards for one unit of Zoom are given below:Standard Quantity Standard Price Standardor Hours or Rate CostDirect materials ........... 4.6 pounds $2.50 per pound $11.50Direct labor ................. 0.2 hours $12.00 per hour $2.40During the most recent month, the following activity was recorded:a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.b. All of the material purchased was used to produce 4,000 units of Zoom.c. 750 hours of direct labor time were recorded at a total labor cost of $10,425.Required:1. Compute the direct materials price and quantity variances for the month.2. Compute the direct labor rate and efficiency variances for the month.
ASM Company makes a cologne called Allure. The standard cost for one bottle of Allure is as follows: Standard Manufacturing Cost Elements Quantity x Price = Cost Direct materials 6 oz. x P0.90 = P 5.40 Direct labor 0.5 hrs. x P12.00 = P 6.00 Manufacturing overhead 0.5 hrs. x P 4.80 = P 2.40 P13.80 During the month, the following transactions occurred in manufacturing 10,000 bottles of Allure: 1. 58,000 ounces of materials were purchased at P1.00 per ounce. 2. All the materials purchased were used to produce the 10,000 bottles of Allure. 3. 4,900 direct labor hours were worked at a total labor cost of P56,350. 4. Variable manufacturing overhead incurred was P15,000 and fixed overhead incurred was P10,400. The manufacturing overhead rate of P4.80 is based on a normal capacity of 5,200 direct labor hours. The total budget at this capacity is P10,400 fixed and P14,560 variable. Instructions: (a) Compute the total variance and the variances for direct materials and direct labor…
Celebes Corporation makes a product with the following standard costs: Direct Materials Direct Labor Standard Quantity or Hours Standard Price or Rate 2.4 Kilos $16.25 per kilo 1.15 Hours $18.25 per hour The company reported the following results concerning this product in June. Actual Output Raw materials used in production Actual direct labor hours Purchases of raw materials Actual price of raw materials Actual direct labor rate 14,850 units 33,400 kilos 15,700 hours 26,100 kilos $18.10 $17.75 per kilo per hour a) What was materials price variance for June? b) What was materials quantity variance for June? c) What was the labor rate variance for June? d) What was the labor efficiency variance for June?
Bohol Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate $3.10 per kilo $ 19.00 per hour Direct Materials 1.1 Direct Labor 02 Kilos Hours The company reported the following results concerning this product in June. Actual Output Raw materials used in production Actual direct labor hours Purchases of raw materials Actual price of raw materials Actual direct labor rate 148,300 units 160,750 kilos 26,100 hours 140,500 kilos $3.35 per kilo $21.50 per hour a) What was materials price variance for June? b) What was materials quantity variance for June? c) What was the labor rate variance for June? d) What was the labor efficiency variance for June?
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.80 feet at $3.00 per foot $ 5.40 Actual: 1.80 feet at $3.30 per foot $ 5.94 Direct labor: Standard: 0.90 hours at $18.00 per hour 16.20 Actual: 0.92 hours at $17.50 per hour 16.10 Variable overhead: Standard: 0.90 hours at $5.00 per hour 4.50 Actual: 0.92 hours at $4.50 per hour 4.14 Total cost per unit $ 26.10 $ 26.18 Excess of actual cost over standard cost per unit $ 0.08 The production superintendent was pleased when he saw this report and commented: “This $0.08 excess cost is well within the 2 percent limit management has set for acceptable variances. It's obvious that…
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Standard Price or Cost Per Rate Unit $ 3.00 per ounce $ 17.00 per hour $ 6.00 per hour Direct materials 7.3 ounces $21.90 $ 3.40 $ 1.20 Direct labor e.2 hours Variable overhead e.2 hours The company reported the following results concening this product in June. 2,700 units 2,800 units 18,500 ounces Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours 21,600 ounces 480 hours $ 42,100 $ 12,700 $ 3,350 Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies varlable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materlals are purchased. The labor rate varlance for June is:
Tharaldson Corporation makes a product with the following standard costs: Standard Standard Cost Quantity or Hours Standard Price or Rate Per Unit $ 21.20 $ 10.40 $3.20 Direct materials 5.3 ounces $ 4.00 per ounce $13.00 per hour $ 4.00 per hour Direct labor 0.8 hours Variable overhead 0.8 hours The company reported the following results concerning this product in June. 4,300 units 4,300 units 24,500 ounces 20,200 ounces 6,400 hours $ 42,800 $ 14,300 $ 4,150 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 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:
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.90 feet at $3.00 per foot $ 5.70 Actual: 1.85 feet at $3.40 per foot $ 6.29 Direct labor: Standard: 1.00 hours at $18.00 per hour 18.00 Actual: 1.05 hours at $17.40 per hour 18.27 Variable overhead: Standard: 1.00 hours at $8.00 per hour 8.00 Actual: 1.05 hours at $7.60 per hour 7.98 Total cost per unit $ 31.70 $ 32.54 Excess of actual cost over standard cost per unit $ 0.84 The production superintendent was pleased when he saw this report and commented: “This $0.84 excess cost is well within the 4 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 15,000 units.…
Genola Fashions began production of a new product on June 1. The company uses a standard cost systemand has established the following standards for one unit of the new product:Standard Quantity Standard Price Standardor Hours or Rate CostDirect materials .......... 2.5 yards $14 per yard $35.00Direct labor ................ 1.6 hours $8 per hour $12.80During June, the following activity was recorded regarding the new product:a. Purchasing acquired 10,000 yards of material at a cost of $13.80 per yard.b. Production used 8,000 yards of the material to manufacture 3,000 units of the new product.c. Production reported that 5,000 direct labor-hours were worked on the new product at a cost of$43,000.Required:1. For direct materials:a. Compute the direct materials price and quantity variances.b. Prepare journal entries to record the purchase of materials and the use of materials in production.2. For direct labor:a. Compute the direct labor rate and efficiency variances.b. Prepare a journal…
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.90 feet at $4.60 per foot $ 8.74 Actual: 1.85 feet at $5.00 per foot $ 9.25 Direct labor: Standard: 0.95 hours at $19.00 per hour 18.05 Actual: 1.00 hours at $18.50 per hour 18.50 Variable overhead: Standard: 0.95 hours at $7.00 per hour 6.65 Actual: 1.00 hours at $6.60 per hour 6.60 Total cost per unit $ 33.44 $ 34.35 Excess of actual cost over standard cost per unit $ 0.91 The production superintendent was pleased when he saw this report and commented: “This $0.91 excess cost is well within the 4 percent limit management has set for acceptable variances. It's obvious…
STI Industries manufactures two types of industrial staplers, small and regular. During October,STI purchased direct materials to produce its staplers. The quantity purchased equaled thequantity used. Related information for direct materials is as follows: Small RegularDirect materials Stapler StaplerStandard ounces per unit 12 cStandard price per ounce $2.00 $2.50Actual quantity purchased (used) per unit a 16.75Actual price per ounce $2.50 $2.80Materials price variance $1,000 U $2,010 U Materials usage variance $800 F…

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