Menounos Manufacturing Co. uses standard costs. Standard costs and actual costs for directmaterials and direct labor for the manufactureC3,000 units during 20Y6 were as follows:SpecificsStandard CostsActual CostsDirect materials18,000 Ibs. at $4.50 per pound.18,500 lbs. at $4.35 per pound.Direct labor7,500 hours at $12.00 per hour.7,420 hours at $12.30 per hour.• Each unit requires 2.5 hours of direct labor.a. Compute the direct materials price variance and direct materials quantity variance. Indicatewhether each variance is favorable or unfavorable.b. Compute the direct labor rate variance and direct labor time variance. Indicate whethereach variance is favorable or unfavorable.

Definition: Direct material variances: The difference between the actual material cost per unit…

Answered: Menounos Manufacturing Co. uses…

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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a. Direct Materials Price Variance Wrong Direct Materials Quantity Variance Wrong Total Direct Materials Cost Variance Wrong b. Direct Labor Rate Variance Wrong Direct Labor (Time) Efficiency Variance Wrong Total Direct Labor Cost Variance Wrong C. Fixed Factory Overhead Volume Variance Standard for amount produced Normal Capacity at 100% Capacity not used Standard Fixed FOH cost rate Factory Overhead Volume Variance Wrong Variable Factory Overhead Controllable Variance Standard Variable FOH Cost for 3,000 hours Actual Variable FOH Cost Factory Overhead Controllable Variance Wrong Total Factory Overhead Cost Variance Wrong
Bramble's standard quantities for 1 unit of product include 3 pounds of materials and 1.0 labor hours. The standard rates are $3 per pound and $5 per hour. The standard overhead rate is $10 per direct labor hour. The total standard cost per unit of Bramble's product is O $24.00. O $18.00. O $15.00. O $14.00.
The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) Variable overhead 3 hours per unit @ $0.78 per hour 3 hours per unit @ $2.00 per hour a. $0 b. $624 favorable O c. $780 unfavorable O d. $624 unfavorable Actual Costs Total variable cost, $18,000 Total fixed cost, $7,900 The amount of the fixed factory overhead volume variance is
gue Corporation uses a standard cost system. The following information was provided for the period that just ended: Actual price per kilogram $3.00 Actual kilograms of material used 31,000 Actual hourly labor rate $18.20 Actual hours of production 4,900 labor hours Standard price per kilogram $2.80 Standard kilograms per completed unit 6 kilograms Standard hourly labor rate $18.00 Standard time per completed unit 1 hr. Actual total factory overhead $34,900 Actual fixed factory overhead $18,000 Standard fixed factory overhead rate $1.20 per labor hour Standard variable factory overhead rate $3.80 per labor hour Maximum plant capacity 15,000 hours Units completed during the period 5,000 The direct labor cost variance is _____.
Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Price (Rate) Standard Quantity 2.50 sq. ft. 1 hrs. $2.90 per sq. ft. $11.00 per hr. $ 0.40 per hr. Direct materials (cork board) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($68,250+ 195,000 units) Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard used Cost of corkboard used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Required 1 Required 2 Required 3. 1 hrs. Complete this question by entering your answers in the tabs below. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance Required: 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. 2. Calculate the direct labor rate, efficiency, and total spending variances for…
Oriole's standard quantities for 1 unit of product include 3 pounds of materials and 2.5 labor hours. The standard rates are $4 per pound and $5 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost per unit of Oriole's product is
Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Direct materials Direct labor 251,600 lbs. at $5.20 per lb. 18,500 hrs. at $16.80 per hr. Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $4.10 Fixed cost, $6.50 Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Factory overhead Actual Costs 249,100 lbs. at $5.00 per lb. 18,930 hrs. at $17.10 per hr. $ Direct Materials Price Variance Direct Materials Quantity Variance Favorable Favorable Favorable Total Direct Materials Cost Variance b. Determine the direct…
Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (2 hours @ $14 per hour) 28 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $4.75 per pound) $ 595,175 Direct labor (22,300 hours @ $14.15 per hour) 315,545 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.
Bramble Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-2 pound plastic at $6 per pound Direct labor-1.0 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (10,330 pounds) Direct labor (5,000 hours) Variable overhead Fixed overhead Total manufacturing costs Show Transcribed Text $64,046 61.000 52.122 21,578 The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,200 direct labor hours (5.200 units) for the month. The master budget showed total variable overhead costs of $36,400 ($7.00 per hour) and total fixed overhead costs of $36,400 ($7.00 per hour) Actual costs for October in producing 5.100 units were as follows. $198.746 Overhead volume variance Overhead controllable variance $ $12.00 12.00 $ 7.00 7.00 The…
Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $5 per pound) Direct labor (3 hours @ $15 per hour) $ 75 45 During June the company incurred the following actual costs to produce 8,400 units. Direct materials (128,700 pounds @ $4.75 per pound) Direct labor (29,500 hours @ $15.15 per hour) $ 611,325 446,925 AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfav Actual Cost Standard Cost $ $ $ Required 1 Required 2 >

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