Milar Corporation makes a product with the following standard costsStandard QuantityStandard Price onor Hours6.5 poundsDirect materialsDirect laborNariable overheadRate.$ 6.00 per pound$25.00 per hour$11.50 per hour0.8 hours0.8 hoursIn January the company produced 3,360 units using 13.440 pounds of the direct material and 2.808 direct labor-hours, During the month, the company purchased 16,900 pounds of the direct material ata cost of $14,200. The actual direct labor cost was S69,795 and the actual Varlable overhead cost Was $30,940.The company applies variable overhead on the basis of direct iabor-hours. The direct materials purchases variance is computed when the materials are purchased.The labor rate variance for January isMultiple Choice$405 F$405 UWindows UpdateS2.595UCountdown to goodnes...We're all set to do the restart you scheduled.McGrawHillPrev24 of 36NexflmType here to search|耳59 F Mostly cloudy8:34 AM10/21/2021DELLF1F2F3F4F5F6F7F8F9F10F11F12PrtScrInsertDeletePgUpHom"R

Labour rate variance shows difference in standard cost and actual cost of labour due to differences…

Answered: Milar Corporation makes a product with…

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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Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost 7.40 pounds $ 2.60 per pound $ 19.24 $ 3.60 8.45 hours $ 8.00 per hour During the most recent month, the following activity was recorded: Direct materials Direct labor a. Twelve thousand one hundred pounds of material were purchased at a cost of $2.50 per pound. b. All of the material purchased was used to produce 1,500 units of Zoom. c. 575 hours of direct labor time were recorded at a total labor cost of $5,750. Required: 1. Compute the materials price and quantity varlances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values. Round your…
Mohammed Company employs a standard cost system. Mohammed has established the following standards for one unit of product: Standard Quantity Standard Price Standard Cost Direct materials 12.0 pounds $ 7.00/pound $ 84.00 Direct labor 2.0 hours $15.00/hour 75.00 During June, Mohammed planned to produce 21,000 units of product. It purchased 330,000 pounds of direct material at a total cost of $2,343,000. The total factory wages for June were $1,440,000. Mohammed manufactured 20,000 units of product during June using 302,000 pounds of direct material and 41,000 direct labor hours. How much is the labor efficiency variance? $15,000 unfavorable $75,000 unfavorable $75,000 favorable $15,000 favorable $35,000 favorable
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: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Cream base Variable 100 oz. $0.02 $ 2.00 Natural oils Variable 30 oz. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 Part A—Break-Even Analysis The…
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Standard Price or Standard Hours Rate Cost Direct materials Direct labor 6.90 pounds 0.50 houra $ 2.50 per pound $ 13.50 per hour $ 17.25 $ 6.75 During the most recent month, the following activity was recorded: a. Thirteen thousand four hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,340 units, using 12,060 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 770 hours of direct labor time were recorded at a total labor cost of $9,240. Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Materials price variance…
The materials price variance for January is: Multiple Cholce $280 U $420 F $420 U $280 F
Discover Motor Company uses a standard cost system to collect costs related to the production of its toothpick motors. The direct labor standard for each toothpick motor is 1.25 hours at a standard cost of $9.50 per hour. During the month of May, Discover's toothpick motor production used 5,900 direct labor-hours at a total direct labor cost of $54,575. This resulted in production of 4,800 toothpick motors for May. What is Discover's labor efficiency variance for the month of May? A. $950 favorableB. $1,475 favorableC. $8,975 unfavorableD. $10,450 unfavorable
Denger
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Spring, Incorporated manufactures two products. It currently has 1,000 hours of direct labor and 2,080 hours of machine time available per month. The following table lists the contribution margin, labor and machine time requirements, and demand for each product: Unit contribution margin Demand Labor time Machine time Product A $21 1, 040 units 3/4 hour 1 hour How much of each product should Spring manufacture per month? Product B $18 2,080 units 1 hour 1/2 hour
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Rahul
Handerson Corporation makes a product with the following standard costs: Standard Quantity Standard Price or or Hours 8.5 kilos Rate Direct materials $46.00 r kilo $ 20.00 per hour $ 6.00 per hour Direct labor 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output 3,200 units 29,030 kilos 31,600 kilos 1,160 hours $ 195,920 $ 22,736 $ 7,540 Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is cor purchased. The labor efficiency variance for August is:

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