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

See similar textbooks

Similar questions

The following is the standard cost card for X Company's only product:Direct materials, 4 metres at $4.00Direct labour, 5 hours at $10.00Variable overhead. 1.5 hours at $3.00Fixed overhead, 1.5 hours at $7.00Standard cost per unit $16.00 $15.00 $4.50 $10.50 $46.00 The company manufactured and sold 18,000 units of product during the year. A total of 70,200 metres of material was purchased during the year at cost of $4.20 per metre. All of this material was used to manufacture the 18,000 units. The company records showed no beginning or ending inventories for the year. The company worked 29,250 direct labour hours during the year at a cost of $9.75 per hour. Overhead cost is applied to products on the basis of direct labour hours. The denominator activity level (direct labour hours) was 22,500 hours. Budgeted fixed overhead costs as shown on the flexible budget were $157,500, while actual fixed overhead costs were $156,000. Actual variable overhead costs were $90,000 Required: Compute…
Walthaus Corporation's standard cost sheet is as follows: Direct material 4 feet at $5.00 per foot Direct labor 3 hours at $10.00 per hour Variable overhead 3 hours at $2.00 per hour Fixed overhead 3 hours at $1.00 per hour Additional information: Actual results: purchased 30,000 lbs of material at $5.25 per lb. (there were no beginning or ending material inventories); direct labor cost incurred was 26,000 hours at $9.75 per hour; actual variable overhead incurred, $50,000; and actual fixed overhead incurred $43,000. Overhead is applied to work-in-process on the basis of direct labor hours. The company produced 8,000 units of product during the period. The number of estimated hours for computing the fixed overhead application rate totaled 45,000 hours. What are the labor price and efficiency variances? Multiple Choice $6,500 F; $20,000 U. $6,500 U; $20,000 U. $7,200 F; $8,400 U. None of these.
6
Integrity Company uses standard costing for each specialized product. The following information is available: Standards: Material- 3.0 feet per unit @ P42.00 per foot Labor- 2.5 hours per unit @ P75.00 per hour Actual: Production- 2,750 units produced during the month Material- 8,700 feet used; 9,000 feet purchased @ P45.00 per foot Labor- 7,000 direct labor hours @ P79.00 per hour How much is the amount of direct materials debited to Work in Process Inventory?
The standard cost sheet for a product is shown. Standard Cost Manufacturing Costs Standard price Standard Quantity per unit Direct materials $4.50 per pound 5.70 pounds $ 25.65 Direct labor $11.87 per hour 2.00 hours $ 23.74 Overhead $2.20 per hour 2.00 hours $ 4.40 $ 53.79 The company produced 3,000 units that required: 17,600 pounds of material purchased at $4.35 per pound • 5,910 hours of labor at an hourly rate of $12.17 per hour • Actual overhead in the period was $13,540 Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the ne Budget Performance Report Variance Manufacturing Costs: Actual Standard (Favorable)/ 3,000 units Costs Costs Unfavorable Direct materials $76,560 Direct labor 71,220 Overhead 13,540 $655
The following are standard costs related to a product of Jacobs, SRL: Inputs: Unit of Input Units per item Price or rate Direct Materials: square feet 80 $22/square foot Direct Labor: direct labor hours 24 $38/direct labor hour Variable Overhead: direct labor hours $49/direct labor hour The company applies variable overhead on the basis of direct labor hours. In April, the following results were reported: Actual output: 506 items Raw Materials used: 45,684 square feet Raw Material purchased: 42,335 square feet Actual direct labor hours: 14,168 hours Actual cost of raw materials purchased: $973,705 Actual direct labor cost: $609,224 Actual variable overhead cost: $665,896 The direct material purchases variance is computed when the materials are purchased. Determine each of the following variances and whether they are favorable or unfavorable: Part 1: Direct Material quantity variance: 114,488 Unfavorable 114,488 Favorable 83,145 Favorable 83, 145…
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $3 per pound) Direct labor (2 hours @ $14 per hour) $ 42 28 During May the company incurred the following actual costs to produce 8.100 units. Direct materials (115,780 pounds @ $2.80 per pound) Direct labor (19,700 hours @ $14.10 per hour) $ 323,968 277,770 AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ AP Standard Quantity Actual Price SP=Standard Price AH = Actual Hours SH Standard Hours (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. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
Quicksand Company has set the following standards for one unit of product:Direct materialQuantity: 6.2 pounds per unitPrice per pound: $11 per poundDirect laborQuantity: 6 hours per unitRate per hour: $23 per hour Actual costs incurred in the production of 2,800 units were as follows:Direct material: $194,350 ($11.50 per pound)Direct labor: $393,750 ($22.50 per hour)All materials purchased were consumed during the period.Indicate whether direct-quantity variances are favorable or unfavorable.Indicate whether direct-labor rate is favorable or unfavorable. Indicate whether labor efficiency variances are favorable or unfavorable.
Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) Direct labor (3 hours @ $15 per hour) During June the company incurred the following actual costs to produce 8,300 units. Direct materials (119,100 pounds @ $4.70 per pound) Direct labor (28,600 hours @ $15.20 per hour) AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $70 45 $ 559,770 434,720
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
The following standard costs per unit, of one product, have been taken from the records of Bahrain Company. Direct materials 5 kgs at $3 per kg Direct labor 2.5 hours at $10 per hour Actual data for last month: Units produced: 12,000 Direct materials used: 35,000 kgs Direct material price: $4 per kg Direct labor hours: 22,000 Direct labor rate per hour: $9 Direct materials purchased: 100,000 kgs Required: (n) Compute the price and efficiency variances for direct materials and direct labor. Direct material price variance to be calculated at the time of purchase. (6) Prepare the journal entries to record the price and efficiency variances for direct materials and direct labor. For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac).
The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used 17,300 pounds at $4.70 per pound Actual direct labor used 17,935 hours at $32 per hour Actual units produced 32,600 Standard quantity and price per unit for direct materials 0.50 pound at $4.65 per pound Standard quantity and rate per unit for direct labor 0.50 hour at $33 per hour 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 and efficiency variances.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS