Jensen Company manufactures a single product. Selected data from the company's cost records for two recentmonths are given below.Level of ActivityMarch - LowSeptember - HighNumber of units produced9,00012,000Cost of goods manufactured$285,000$390,000Work in process inventory, beginning14,00022,000Work in process inventory, ending25,00015,000Direct materials cost per unit1515Direct labour cost per unit6.6.Manufacturing overhead cost, totalThe company's manufacturing overhead cost consists of both variable and fixed cost elements. To have dataavailable for planning, management wants to determine how much of the overhead cost is variable with unitsproduced and how much of it is fixed per year.

Cost of Goods Manufactured: Cost of Goods Manufactured is the cost of the goods produced during a…

Answered: Jensen Company manufactures a single…

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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Milar Corporation makes a product with the following standard costs Standard Quantity Standard Price on or Hours 6.5 pounds Direct materials Direct labor Nariable overhead Rate. $ 6.00 per pound $25.00 per hour $11.50 per hour 0.8 hours 0.8 hours In January the company produced 3,360 units using 13.440 pounds of the direct material and 2.808 direct labor-hours, During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,200. The actual direct labor cost was S69,795 and the actual Varlable overhead cost Was $30,940. The company applies variable overhead on the basis of direct iabor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for January is Multiple Choice $405 F $405 U Windows Update S2.595U Countdown to goodnes... We're all set to do the restart you scheduled. Mc Graw Hill Prev 24 of 36 Nexflm Type here to search |耳 59 F Mostly cloudy 8:34 AM 10/21/2021 DELL F1 F2 F3 F4 F5 F6 F7…
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate Direct materials Direct labor Variable overhead 9.0 grams e.4 hours $ 3.60 per gram $36.00 per hour $ 8.60 per hour e.4 hours The company produced 6,800 units in January using 40.910 grams of direct material and 2.540 direct labor-hours. During the month, the company purchased 46,000 grams of the direct material at $3.30 per gram. The actual direct labor rate was $35.30 per hour and the actual varlable overhead rate was $8.40 per hour. The company applies varlable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchased. The varlable overhead rate varlance for January is:
Assume the following information appears in the standard cost card for a company that makes only one product: Standar Quantity or Hours Standar Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 16.90 per hour $ 33.80 Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor rate variance?
gue Corporation uses a standard cost system. The following information was provided for the period that just ended: Actual price per kilogram $3.00 Actual kilograms of material used 31,000 Actual hourly labor rate $18.20 Actual hours of production 4,900 labor hours Standard price per kilogram $2.80 Standard kilograms per completed unit 6 kilograms Standard hourly labor rate $18.00 Standard time per completed unit 1 hr. Actual total factory overhead $34,900 Actual fixed factory overhead $18,000 Standard fixed factory overhead rate $1.20 per labor hour Standard variable factory overhead rate $3.80 per labor hour Maximum plant capacity 15,000 hours Units completed during the period 5,000 The direct labor cost variance is _____.
Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Price (Rate) Standard Quantity 2.50 sq. ft. 1 hrs. $2.90 per sq. ft. $11.00 per hr. $ 0.40 per hr. Direct materials (cork board) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($68,250+ 195,000 units) Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard used Cost of corkboard used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Required 1 Required 2 Required 3. 1 hrs. Complete this question by entering your answers in the tabs below. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance Required: 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. 2. Calculate the direct labor rate, efficiency, and total spending variances for…
Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows: Direct materials: 4 units @ $6.50 $26.00 Direct Labor: 8 hours @ $8.50 68 Variable factory overhead: 8 hours @ $7.00 56 Fixed factory overhead: 8 hours @ $25 20 Total standard cost per unit $170,000 The following information pertains to activity for December: 1. Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations. 2. Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity. 3. Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year. 4. Actual production amounted to 6,500 completed units. Compute Arrow's direct labor variances.
COVID 19 Co has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,443,140 59.000 machine-hours Processing orders $ 80,905 2,750 orders Inspection $145.733 1,910 inspection-hours The company makes 890 units of product YBa year, requiring a total of 2,070 machine-hours, 41 orders, and 35 inspection-hours per year. The product's direct materials cost is $56.46 per unit and its direct labor cost is $22.67 per unit The product sells for $148.50 per unit According to the activity-based costing system, the product margin for product YB is: (Round your intermediate calculations and final answers to 2 decimal places.) Select one: a $4.560.38 b $5.450.38 C $7.230 38 d. $6.340.38
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 3.80 per hour $ 7.60 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. The actual variable overhead cost incurred during the period was $25,000. Assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead efficiency variance?
andall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 120% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 86,000 $ 49,000 Work in process 75,000 51,000 Finished goods 124,000 109,000 Other information Direct materials purchases $ 333,000 Cost of goods available for sale 980,000 Actual factory overhead costs 269,000 The amount of underapplied or overapplied overhead is: Multiple Choice $59,000 overapplied. $59,000 underapplied. $17,000 overapplied. $17,000 underapplied. $0.
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 7.7 pounds $ 4.00 per pound Direct labor 0.1 hours $ 20.00 per hour Variable overhead 0.1 hours $ 4.00 per hour In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756.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 variable overhead rate variance for January is: $84 U $84 F $80 U $80 F Do not give solution in image
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ? During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: Materials quantity variance $ 4,050 U Labor spending variance $ 2,180 U Labor efficiency variance $ 770 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production. c. Compute the…
Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours Job Bravo Direct labor-hours Machine-hours Assembly $1,400,000 70,000 28,000 Assembly Fabrication 15 7 7 10 Fabrication Total $1,680,000 $3,080,000 Total 22 17 42,000 140,000 112,000 168,000 Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied…

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