Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds ofdirect materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct laborhours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were usedduring the year.(a)If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimalplaces, e.g. 2.75.)(b)Your answer is correct.Standard materials price per pound $(c)eTextbook and MediaYour answer is correct.If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit?Standard materials quantity per unit(d)eTextbook and MediaYour answer is correct.What were the standard hours allowed for the units produced?Standard hours allowedeTextbook and Media45,280 hoursActual hours worked0.95If the labor quantity variance was $6,500 unfavorable, what were the actual direct labor hours worked?hours4 poundsAttempts: 1 of 5 usedAttempts: 4 of 5 usedAttempts: 1 of 5 used

Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. (a) If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) (b) Your answer is correct. (c) Standard materials price per pound $ eTextbook and Media Your answer is correct. (d) If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? Standard materials quantity per unit eTextbook and Media Your answer is correct. What were the standard hours allowed for the units produced? Standard hours allowed eTextbook and Media 45,280 hours Actual hours worked 0.95 If the labor quantity variance was $6,500 unfavorable, what were the actual direct labor hours worked? hours 4 pounds Attempts: 1 of 5 used Attempts: 4 of 5 used Attempts: 1 of 5 used

Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. (a) If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) (b) Your answer is correct. (c) Standard materials price per pound $ eTextbook and Media Your answer is correct. (d) If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? Standard materials quantity per unit eTextbook and Media Your answer is correct. What were the standard hours allowed for the units produced? Standard hours allowed eTextbook and Media 45,280 hours Actual hours worked 0.95 If the labor quantity variance was $6,500 unfavorable, what were the actual direct labor hours worked? hours 4 pounds Attempts: 1 of 5 used Attempts: 4 of 5 used Attempts: 1 of 5 used

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and production hours 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 Model A is responsible for 40% of the materials cost. Calculate the unit cost for Models A and B, 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.
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. (a) Your answer is correct. If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound $ (b) eTextbook and Media * Your answer is incorrect. 0.95 Standard materials quantity per unit If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? Attempts: 1 of 5 used -5.3 pounds