Lala Land Sdn Bhd manufactures two types of educational toy for the school children namelyLili and Lolo. The manufacturing of the toys will use two types of materials, 001 and 002, andtwo grades of labour, skilled labour and semi-skilled labour.Data regarding the consumption of material and the hours worked to produce one unit of eachproduct is shown below:LiliLoloDirect material 00110 kilos12 kilos(RM4 per kg)Direct material 0023 kilos2 kilos(RM10 per kg)Skilled labour4 hours2.5 hours(RM10 per hour)Semi-skilled labour2 hours1.5 hours(RM6 per hour)重Projected data for January 2018 are as follows:LINLolo001002Opening stock (units)Closing stock(units)9001,50014,00010,5009901650Units sold12501000Required:Using the information above, you are required to prepare the following budgets for the monthof January 2018:a) Production Budget for Lill and Lolo.b) Direct Material Purchase Budget for materials 001 and 002.c) Direct Labour Budget for Lili and Lolo.

Budget is the estimated amount of production, material cost and labor cost. It help in finding…

Answered: Lala Land Sdn Bhd manufactures two…

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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Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 132.00 $ 94.00 Direct materials per unit $ 64.60 $ 53.00 Direct labor per unit $ 9.60 $ 8.00 Direct labor-hours per unit 1.2 DLHs 1.0 DLHs Estimated annual production and sales 24,000 units 70,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $ 2,470,000 Estimated total direct labor-hours 98,800 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system. 2. The company is considering replacing its traditional costing system with an…
Floyd Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is provided in the table below. Estimation for Number of Units Produced, Machine Hours Used, and Direct Labor Hours Toy Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 8,000 MH 700 DLH Puppy 3,000 5,000 MH 1,000 DLH Bunny 5,000 4,000 MH 2,300 DLH The total machine running costs incurred during the year is $204,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to each unit of Bear? (Round your answer to two decimal points) Group of answer choices $20.00 per unit $9.60 per unit $12.00 per unit $48.00 per unit
Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 120.00 $ 87.00 Direct materials per unit $ 65.20 $ 51.00 Direct labor per unit $ 11.20 $ 8.00 Direct labor-hours per unit 1.4 DLHs 1.0 DLHs Estimated annual production and sales 30,000 units 65,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $ 2,033,000 Estimated total direct labor-hours 107,000 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing…
Floyd Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is provided in the table below. Estimation for Number of Units Produced, Machine Hours Used, and Direct Labor Hours Toy Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 8,000 MH 700 DLH Puppy 3,000 5,000 MH 1,000 DLH Bunny 5,000 4,000 MH 2,300 DLH The total machine running costs incurred during the year is $204,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Bear during the year? Group of answer choices $96,000 $60,000 $48,000 $8,400
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 24 minutes $ 6.00 $ 2.40 During August, 8,380 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $48,604 for the month. Required: 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $40,224 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
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A firm makes a range of running shoes. There are three models – Short; Middle; and Long distance. The products are aimed at different segments of the market. Product costs are computed using an overhead rate based on the labour hour method. Selling prices are set on full cost plus 20%. A unit refers to a pair of running shoes. The following information is available: Short distance Middle distance Long distance Direct material cost per unit $25 $35 $40 Labour hours per unit 2 hrs 2 hrs 2 hrs Labour rate per hour $12 $12 $12 Total labour hours used 120,000 hrs 24,000 hrs 16,000 hrs Total number of units 60,000 units 12,000 units 8,000 units Cost driver information: Short distance Middle distance Long distance No. of machine hours 60,000 48,000 48,000 No. of material orders 30 100 200 No. of sales orders 12 48 63 The total overhead costs for the business amount to $1.2…

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