Ladron Candy (LC) uses activity-based-costing to allocate overhead costs to cost pools. They produced 180,000 lbs of chocolate during August. Information for the product testing cost pool is provided below. Complete the table titled "Variable Overhead Variance Analysis for LC Using Activity Based Costing: Product Testing." Product testing Activity a. Standard Rate $0.55 per test minute C. Standard Quantity per Unit Produced 0.5 minutes per unit Actual Costs $48,000 Actual Quantity Variable Overhead Variance Analysis for LC Using Activity Based Costing: Product Testing 102,000 test minutes Using the results from your table, which of the variances is correct for the product testing cost pool? $3,000 favorable spending variance; $1,500 unfavorable efficiency variance b. $3,000 unfavorable spending variance; $5,100 favorable efficiency variance $8,100 unfavorable spending variance; $5,100 unfavorable efficiency variance d. $8,100 favorable spending variance; $19,950 unfavorable efficiency variance

Ladron Candy (LC) uses activity-based-costing to allocate overhead costs to cost pools. They produced 180,000 lbs of chocolate during August. Information for the product testing cost pool is provided below. Complete the table titled "Variable Overhead Variance Analysis for LC Using Activity Based Costing: Product Testing." Product testing Activity a. Standard Rate $0.55 per test minute C. Standard Quantity per Unit Produced 0.5 minutes per unit Actual Costs $48,000 Actual Quantity Variable Overhead Variance Analysis for LC Using Activity Based Costing: Product Testing 102,000 test minutes Using the results from your table, which of the variances is correct for the product testing cost pool? $3,000 favorable spending variance; $1,500 unfavorable efficiency variance b. $3,000 unfavorable spending variance; $5,100 favorable efficiency variance $8,100 unfavorable spending variance; $5,100 unfavorable efficiency variance d. $8,100 favorable spending variance; $19,950 unfavorable efficiency variance

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Description: Ladron Candy (LC) uses activity-based-costing to allocate overhead costs tocost pools. They produced 180,000 lbs of chocolate during August. Informationfor the product testing cost pool is provided below. Complete the table titled"Variable Overhead

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Delano Company uses two types of direct labor for the manufacturing of its products: fabricating and assembly. Delano has developed the following standard mix for direct labor, where output is measured in number of circuit boards. During the second week in April, Delano produced the following results: Required: 1. Calculate the yield ratio. 2. Calculate the standard cost per unit of the yield. 3. Calculate the direct labor yield variance. 4. Calculate the direct labor mix variance.
Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-64 Performance Report Based on Actual Production Refer to the information for Palladium Inc. above. Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Required: Prepare a performance report for the period based on actual production.
Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following overhead costs and related cost drivers for the coming year. The following were incurred in manufacturing two of their cell phones, Bubble and Burst, during the first quarter. REQUIREMENT Review the worksheet called ABC that follows these requirements. You have been asked to determine the cost of each product using an activity-based cost system. Note that the problem information is already entered into the Data Section of the ABC worksheet.
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Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet: On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Required: 1. Calculate the yield ratio. 2. Calculate the standard cost per unit of the yield. (Round to the nearest cent.) 3. Calculate the direct materials yield variance. (Round to the nearest cent.) 4. Calculate the direct materials mix variance. (Round to the nearest cent.)
During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following costs were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Tool SK1 is responsible for 60% of the materials cost. Calculate the unit cost for Tool SK 1 and Tool SK3, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.
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Bullseye Company manufactures dartboards. Its standard cost information follows: Direct materials (cork board) Direct labor Standard Quantity 0.50 square feet 0.90 hour Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($21,750/87,000) Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard purchased and used Cost of corkboard used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 0.90 hour Standard Price (Rate) $ 1.30 per square feet $5.00 per hour $0.50 per hour 74,000 43,000 $ 47,200 80,000 $ 98,000 $ 103,880 $ 33,000 Standard Unit Cost $ 0.65 4.50 0.45 0.25 Required: 1. Calculate the fixed overhead spending variance for Bullseye. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). 2. Calculate the fixed overhead volume variance…
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