Shannon Sharpe owns and operates three Frazer Speedo outlets in Columbus, OH. Frazer Speedo is an oil and lubrication service outlet - one ofmany outlets popular throughout the Midwest. The Frazer Speedo outlets also change transmission and power steering fluids. In May, purchasesof materials equaled $80,000, the beginning inventory of materials was $47,300, and the ending inventory of materials was $15,250. Payments todirect labor during the month totaled $63,000. Overhead incurred was $110,000. The Columbus outlet also spent $5,000 on advertising during themonth. A franchise fee of $2,000 per outlet is paid every month. Revenues for May were $400,000What is the TotalCost for May ?$173,000O $285,050O $175,050O $400,000

The total cost includes the total cost of production incurred to produce the product.

Answered: many outlets popular throughout the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1COMP

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Shannon Sharpe owns and operates three Frazer Speedo outlets in Columbus, OH. Frazer Speedo is an oil and lubrication service outlet - one of many outlets popular throughout the Midwest. The Frazer Speedo outlets also change transmission and power steering fluids. In May, purchases of materials equaled $80,000, the beginning inventory of materials was $47,300, and the ending inventory of materials was $15,250. Payments to direct labor during the month totaled $63,000. Overhead incurred was $110,000. The Columbus outlet also spent $5,000 on advertising during the month. A franchise fee of $2,000 per outlet is paid every month. Revenues for May were $400,000 What is the Prime Cost for May ? O $80,000 O $143,000 $175,050 O $110,000
Angelica Virata owns and operates three Compufix shops in Quezon City area. Compufix repairs and upgrades computers on site. In August, purchases of materials equaled P 9,750, the beginning inventory materials was P 850, and the ending inventory of materials was P 950. Payments for direct labor during the month totaled P 18,570. Overhead incurred was P 15,000. The Quezon City shops also spent P 5,000 on advertising during the month. Administrative costs (primarily accounting and legal services) amounted to P 3,000 for the month. Revenues for August were P 60,400.What was the total cost of services for August?
Sinkoe’s Optometry Center purchases all raw materials (e.g. lenses, frames, etc.) on credit. During June, these purchases totalled P 8,700. Labor and actual overhead during June totalled P 24,000 and P 35,000, respectively. In addition to the labor cost, the applied conversion cost included an added P 38,000. All of the eyeglasses worked on during the month were completed and sold on credit for a total of P 80,000. Requirements: Record these transactions (including any closing entries) into T-accounts, assuming a traditional costing. Record these transactions (including any closing entries) into T-accounts, assuming a JIT cost system.
Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: Budget Actual 7,600 hours 6,100 hours Direct labor hours Machine hours 7,200 hours 6,300 hours Depreciation on salespeople's autos $23,000 $23,000 Indirect materials $48,500 $50,500 Depreciation on trucks used to deliver uniforms to customers solla $13,000 $70,000 $40,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $72,500 $42,000 Customer service hotline $19,000 $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements 1odel tba 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers usA acco
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows:
BTS owns and operates three Compufix shops in Quezon City area. Compufix repairs and upgrades computers on site. In August, purchases of materials equaled P 9,750, the beginning inventory materials was P 850, and the ending inventory of materials was P 950. Payments for direct labor during the month totaled P 18,570. Overhead incurred was P 15,000. The Quezon City shops also spent P 5,000 on advertising during the month. Administrative costs (primarily accounting and legal services) amounted to P 3,000 for the month. Revenues for August were P 60,400.What was the total cost of services for August?
Servix, Inc., produces water pumps. Each water pump contains a small valve that costs $ 5. During May, 600 valves were drawn from the supply room and installed in water pumps in the production process. Eighty percent of these units were completed and transferred into finished goods warehouses. Of the units completed, thirty percent were still unsold at the end of the month. There were no beginning inventories. 52.The cost of valves in cost of goods sold for May would be: a. $1,680 b. $2,100 c.$900 d. $72
Calzado Company produces leather shoes in batches. The shoes are produced in one plant located on 20 acres. The plant operates two shifts, five days per week. Each time a batch is produced, just-in-time suppliers deliver materials to the plant. When the materials arrive, a worker checks the quantity and type of materials with the bill of materials for the batch. The worker then makes an entry at a PC terminal near the point of delivery acknowledging receipt of the material. An accounts payable clerk reviews all deliveries at the end of each day and then prints and mails checks the same day materials are received. Prior to producing a batch, the equipment must be configured to reflect style and size features. Once configured, the batch is produced passing through three operations: cutting, sewing, and attaching buckles and other related parts such as heels.At the end of the production process, a sample of shoes is inspected to ensure the right level of quality. After inspection, the…
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Big Sur Water Sports, Inc., manufactures fiberglass boards used for riding the waves at the beach. The products are sold under the brand name Crazy Board. The standard cost for material and labor is $89.20 per board. This includes 8 kilograms of direct material at a standard cost of $5.00 per kilogram and 6 hours of direct labor at $8.20 per hour. The following data pertain to November: Purchases of material: 46,500 kilograms for $248,000 Total actual direct labor costs: $301,490 Actual hours of direct labor: 36,500 hours Production: 5,600 units 1. Calculate the total direct materials variance 2. Calculate the total direct labor variance Check Figures: Total Direct Materials Variance $23,845 Unfavorable Total Direct Labor Variance $25,970 Unfavorable
The manager of Mandaue LTO has determined that it typically takes 30 minutes for the department's employees to register a new car. In Mandaue, the fixed overhead rate computed on ah estimated 4,000 direct labor hours is P8 per direct labor hour, whereas the variable overhead rate is estimated at P3 per direct labor hour. During July, 7,600 cars were registered in Mandaue and 3,700 direct labor hours were worked in registering those vehicles. For the month, variable overhead was P10,730 and fixed overhead was P29,950 Required: a. Compute the overhead variances using a four-variance approach. b. Compute the overhead variances using a three-variance approach c. Compute the overhead variances using a two-variance approach d. Compute the overhead variances uUsing a one way approach.
The Adam manufacturing company produces a single product which goes through one process only. The manufacturing cycle takes a month. The company started its manufacturing operation on 1st February 2021 and costs of production for this month were as follows: Material Rs. 41,412; Labor Rs. 32,054; FOH Rs. 23,870 The production statistics for the month were as follows: Units completed and transferred to finished goods store were 6,500, while no loss was observed during the process. Units in Process on February 28, 2021 were 1,600 (Material 40%, Labor and FOH 20 per cent) Requirement: Prepare the Cost of Production Report at the end of February 2019

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