Landram Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 liters Direct labor 0.7 hours $7.00 per liters $15.00 per hour $5.00 per hour Variable overhead 0.7 hours The company produced 4,500 units in April using 10,130 liters of direct material and 2,110 direct labor hours. During the month, the company purchased 10,700 liters of the direct material at $7.10. per liter. The actual direct labor rate was $15.50 per hour and the actual variable overhead rate was $5.00 per hour. 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 April is: A. $7,910 F B. $8,023 U C. $8,023 F D. $7,910 U

Landram Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 liters Direct labor 0.7 hours $7.00 per liters $15.00 per hour $5.00 per hour Variable overhead 0.7 hours The company produced 4,500 units in April using 10,130 liters of direct material and 2,110 direct labor hours. During the month, the company purchased 10,700 liters of the direct material at $7.10. per liter. The actual direct labor rate was $15.50 per hour and the actual variable overhead rate was $5.00 per hour. 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 April is: A. $7,910 F B. $8,023 U C. $8,023 F D. $7,910 U

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
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Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units of Kings, which retails for $170. The direct materials cost is $20 per unit of Aces and $15 per unit of Kings. The labor rate is $30 per hour, and Five Card Draw estimated 64000 direct labor hours. It takes 4 direct labor hours to manufacture Aces and 3 hours for Kings. The total estimated overhead is $128,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. How much is the gross profit per unit for Aces and Kings? B. What is the total gross profit for the year?
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