Juicy Ltd. is a fruit juice manufacturer that uses a standard costing system and flexible budget for factory overhead. Normal volume is 60,000 units per year. Standard cost details for producing one unit (one 2 Litre bottle) of "Sweetie Syrup" is given below: Direct Material (1.35 litres per unit @ $12.60 per litre) $ 17.01 Direct Labour (0.75 hrs per unit @ $22 per hour) $16.50 Factory Overhead $15.00 Total Standard Cost per Unit $48.51 Factory overhead is applied on the basis of standard direct labour hours. The factory overhead budget for April was $77,000 for a budgeted production level of 5,250 units. For the month of April, the following actual results are observed: 7,200 litres of direct material were purchased at a cost of $95,200 The company had beginning direct materials of 450 litres and ending materials of 800 litres for the period. Direct labour usage was 4,100 Direct Labour Hours (DLH) at a cost of $20.00 per DLH. Factory overhead incurred was $79,200 of which $38,500 was considered to be fixed. 5,500 units were sold in the period.
Juicy Ltd. is a fruit juice manufacturer that uses a standard costing system and flexible budget for factory overhead. Normal volume is 60,000 units per year. Standard cost details for producing one unit (one 2 Litre bottle) of "Sweetie Syrup" is given below: Direct Material (1.35 litres per unit @ $12.60 per litre) $ 17.01 Direct Labour (0.75 hrs per unit @ $22 per hour) $16.50 Factory Overhead $15.00 Total Standard Cost per Unit $48.51 Factory overhead is applied on the basis of standard direct labour hours. The factory overhead budget for April was $77,000 for a budgeted production level of 5,250 units. For the month of April, the following actual results are observed: 7,200 litres of direct material were purchased at a cost of $95,200 The company had beginning direct materials of 450 litres and ending materials of 800 litres for the period. Direct labour usage was 4,100 Direct Labour Hours (DLH) at a cost of $20.00 per DLH. Factory overhead incurred was $79,200 of which $38,500 was considered to be fixed. 5,500 units were sold in the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Calculate:
DMPV
DMUV
VOHSV
VOHEV
Transcribed Image Text:Juicy Ltd. is a fruit juice manufacturer that uses a standard costing system and flexible budget for factory
overhead. Normal volume is 60,000 units per year. Standard cost details for producing one unit (one 2 Litre
bottle) of "Sweetie Syrup" is given below:
Direct Material (1.35 litres per unit @ $12.60 per litre)
$ 17.01
Direct Labour (0.75 hrs per unit @ $22 per hour)
$ 16.50
Factory Overhead
$15.00
Total Standard Cost per Unit
$48.51
Factory overhead is applied on the basis of standard direct labour hours. The factory overhead budget for April
was $77,000 for a budgeted production level of 5,250 units.
For the month of April, the following actual results are observed:
7,200 litres of direct material were purchased at a cost of $95,200
The company had beginning direct materials of 450 litres and ending materials of 800 litres for the period.
Direct labour usage was 4,100 Direct Labour Hours (DLH) at a cost of $20.00 per DLH.
Factory overhead incurred was $79,200 of which $38,500 was considered to be fixed.
5,500 units were sold in the period.
Opening finished goods for the period was 1,750 units and ending finished goods was 1,400 units.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education