Maxwell Manufacturing uses a standard costing system. For September, the following data was recorded: . • Actual labor hours worked: 3,200 hours Actual wage rate: $16.50 per hour ⚫ Standard hours allowed: 3,000 hours . ⚫ Standard wage rate: $17.00 per hour Required: 1. Calculate the Labor Rate Variance 2. Calculate the Labor Efficiency Variance 3. Record the necessary journal entries

Maxwell Manufacturing uses a standard costing system. For September, the following data was recorded: . • Actual labor hours worked: 3,200 hours Actual wage rate: $16.50 per hour ⚫ Standard hours allowed: 3,000 hours . ⚫ Standard wage rate: $17.00 per hour Required: 1. Calculate the Labor Rate Variance 2. Calculate the Labor Efficiency Variance 3. Record the necessary journal entries

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 27BEA: Rath Company showed the following information for the year: Required: 1. Calculate the standard...

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Mulliner Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to factory overhead for the year. 4. Determine the plotted data points using Chart Wizard. 5. Determine R2. 6. How do these solutions compare to the solutions in P4-2 and P4-3? 7. What does R2 tell you about this cost model?
Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on the graph and draw a line by visual inspection, indicating the trend shown by the data points. 2. Determine the variable cost per unit and the total fixed cost from the information on the graph. 3. Determine the variable cost to be charged to the product for the year. 4. Determine the fixed cost to be charged to factory overhead for the year. 5. Do these answers agree with the answers to P4-2? Why or why not?
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (X). The following relationship was found: Y = $1,000 + $2X The equation was probably found through the use of which of the following mathematical techniques?
Please answer the following multiple-choice questions
Kropf Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products based on direct labor-hours. InputsStandard Quantity or Hours per Unit of OutputStandard Price or RateDirect materials 8.60liters$ 8.20per literDirect labor0.70hours$ 26.70per hourVariable manufacturing overhead 0.70hours$ 7.10per hour The company has reported the following actual results for the product for September Actual output10,800units Raw materials purchased94, 200litersActual cost of raw materials purchased$ 782,500 Raw materials used in production92,900litersActual direct labor -hours7, 110hoursActual direct labor cost$ 193,302 Actual variable overhead cost$ 45,414 Required: Compute the materials price variance for September. Compute the materials quantity variance for September Compute the labor rate variance for September. Compute the labor efficiency variance for September. Compute the variable overhead rate…
Sultan Company uses an activity - based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: [[Activity Cost Pool, Activity Measure, [[Expected], [Overhead Cost]], Expected Activity], [Labor-related, Direct labor - hours, 270, 900, 30, 100 DLHS], [Purchase order's, Number of orders, 11,745,261 orders], [Parts management, Number of part types, 78,570,97 part types], [Board etching, Number of boards, 72, 400, 1,810 boards], [ General factory, Machine - hours, 212, 400, 17,700MHs
Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 8.80 liters $ 8.40 per liter Direct labor 0.40 hours $ 28.70 per hour Variable manufacturing overhead 0.40 hours $ 7.30 per hour The company has reported the following actual results for the product for September: Actual output 11,000 units Raw materials purchased 98,400 liters Actual cost of raw materials purchased $ 854,500 Raw materials used in production 96,830 liters Actual direct labor-hours 4,000 hours Actual direct labor cost $ 120,302 Actual variable overhead cost $ 25,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate…
Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Direct materials Standard Price or Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour 8.70 liters Direct labor 0.50 hours Variable manufacturing overhead 0.50 hours The company has reported the following actual results for the product for September: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production 10,900 units 96,300 liters $823,500 94,850 liters 5,000 hours Actual direct labor-hours Actual direct labor cost $142,302 Actual variable overhead cost $ 32,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September.…