Oyster Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $248 per board. This includes 35 pounds of direct materials, at the budgeted price of $3 per pound, and 11 hours of direct manufacturing labor, at the budgeted rate of $13 per hour. Following are additional data for the month of July: Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labor-hours Actual direct manufacturing labor cost Direct materials efficiency variance 5,600 units 230,000 pounds $759,000 43,000 hours $623,500 $ 1,200 F

Oyster Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $248 per board. This includes 35 pounds of direct materials, at the budgeted price of $3 per pound, and 11 hours of direct manufacturing labor, at the budgeted rate of $13 per hour. Following are additional data for the month of July: Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labor-hours Actual direct manufacturing labor cost Direct materials efficiency variance 5,600 units 230,000 pounds $759,000 43,000 hours $623,500 $ 1,200 F

Name: There were no beginning inventories.Q. Compute direct manufacturing la
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: There were no beginning inventories.Q. Compute direct manufacturing labor variances for July. Oyster Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials anddirect manufacturing labor is $248 per board. This includ

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following…

A: The difference between the expected amount and the actual amount is known as variance in accounting.…

Q: Kenya Company’s standard cost accounting system recorded this information from its June operations.…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Presented here are the original overhead budget and the actual costs incurred during April for…

A: 1. To calculate flexed budget allowances for variable and fixed overhead for April: Flexed variable…

Q: The following direct materials and direct labor data pertain to the operations of Blossom Company…

A: Direct costs are the expenses that are directly used for the production of goods and services for…

Q: The purchasing department buys the quantities of raw materials that are expected to be used in…

A: Variance refers to the difference between the actual and the estimated results of the company.…

Q: The records of Heritage Home Supplies show the following for July: Standard direct labor-hours…

A: Variances are often used in performance evaluation and management accounting to monitor and control…

Q: Lcene Oysteria exible Budget onth Ended August 31 8,000 $ 33,600 3. 30q) nce ($3,000) $2,400 +…

A: Actual Flexible Budget Variance Type Actual pounds 8000 8000 - Revenue $…

Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…

A: Flexible Budget :— It is calculated by multiplying standard cost per unit with actual units.…

Q: The following direct materials and direct labor data pertain to the operations of Cullumber Company…

A: Lets understand the basics. Total Material Variance :— It is the difference between standard cost of…

Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…

A: Flexible budget :— It is calculated by multiplying standard amount per unit with actual units.…

Q: For the month of April, compute the variances, indicating whether it is favorable (F) or…

A: Direct manufacturing labor price variance = (Actual rate per hour - Standard rate per hour)*Actual…

Q: [The following information applies to the questions displayed below.] A manufactured product has the…

A: The direct material variation is the difference between actual costs incurred and the standard cost…

Q: Marv Company's direct labor costs for manufacturing its only product were as follows for October:…

A: Direct labor rate variance :— It is the difference between actual direct labor hours at standard…

Q: Required: Calculate the company's revenue and spending variances for August. (Indicate the eff for…

A: REVENUE & SPENDING VARIANCE When Actual revenue are less than flexible revenue then the…

Q: overhead rate is based on direct labor hours. cturing overhead costs incurred direct labor hours rd…

A: The variance analysis provides a better picture of the cost control of the business operations. It…

Q: Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $…

A: Activity variances is computed as = Flexible budget amount - Static budget amount

Q: The records of Heritage Home Supplies show the following for July: Standard direct labor-hours…

A: Variances are often used in performance evaluation and management accounting to monitor and control…

Q: Required: 1. Calculate the company's activity variances for July. (Indicate the effect of each…

A: In cost accounting, the phrase "activity variance" is used to describe the discrepancy between…

Q: wages and salaries Shipping Utilities Other Total expense Net operating income. Required: Calculate…

A: FLEXIBLE BUDGET A flexible budget is a budget that is prepared for different levels of activity or…

Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…

A: The variance is the difference between the actual and standard production data. The revenue and…

Q: 1. Calculate the overhead variance for the year. $ Provide the appropriate adjusting journal entry…

A: Applied overhead is the total amount of overhead that is applied to cost object that includes…

Q: ! Required information [The following information applies to the questions displayed below.] A…

A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…

Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…

A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: Budget Performance Report Salisbury Bottle Company manufactures plastic two-liter bottles for the…

A: Manufacturing Cost :— It is the total Cost Incurred in the manufacturing process of product. It is…

Q: Jake's Roof Repair has provided the following data concerning its costs Cost per Repair Hour $15.00…

A: Variable Cost :— It is the cost that changes with change in cost driver. Variable cost per cost…

Q: Amada Company's standard cost system reports this information from its December operatie $ 106,000…

A: A journal entry is a financial transaction recorded in a company's accounting records. It involves…

Q: You have just been hired by FAB Corporation, the manufacturer of a revolutiona new garage door asked…

A: Flexible budget is not rigid or static and varies with the actual units while planned budget is…

Q: None

A: Step 1: Collect Data• Data provided:Static budget variable overhead: $7,800Static budget fixed…

Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

There were no beginning inventories.

Q. Compute direct manufacturing labor variances for July.

Oyster Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and
direct manufacturing labor is $248 per board. This includes 35 pounds of direct materials, at the budgeted
price of $3 per pound, and 11 hours of direct manufacturing labor, at the budgeted rate of $13 per hour.
Following are additional data for the month of July:
Units completed
Direct material purchases
Cost of direct material purchases
Actual direct manufacturing labor-hours
Actual direct manufacturing labor cost
Direct materials efficiency variance
5,600 units
230,000 pounds
$759,000
43,000 hours
$623,500
$ 1,200 F

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

hd.11.
4
Amada Company's standard cost system reports this information from its December operations. Standard direct materials cost Direct materials quantity variance Direct materials price variance Actual direct labor cost Direct labor efficiency variance Direct labor rate variance Actual overhead cost Volume variance Controllable variance View transaction list Journal entry worksheet 1 Required: 1. Prepare December 31 journal entries to record the company's costs and variances for the month for (a) direct materials, (b) direct labor, and (c) overhead. Ignore the journal entry to close the variances. 2 3 Record direct materials costs and variances. Date December 31 Note: Enter debits before credits. $ 100,000 General Journal 3,000 U 500 F 90,000 7,000 F 1,200 U 375,000 12,000 U 9,000 U Debit Credit >
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,100) Wages and salaries ($2,500 + $0.35q) Shipping ($0.60q) Utilities ($1,210) For the Month Ended August 31 Other ($400 + $0.019) Total expenses Net operating income Actual pounds Revenue The actual results for August were as follows: Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income 7,300 $ 30,295 2,555 3,100 5,055 4,380 1,210 473 16,773 $ 13,522 7,300 $ 26,600 2,725 2,960 5,465 4,110 1,020 1,093 17,373 $ 9,227
Question 3 A shoe company had the following journal entries recorded for the end of June. Materials Control 300,000 Direct Materials Price Variance 10,000 Accounts Payable Control 290,000 Work-in-Process Control 120,000 8,000 Direct Materials Efficiency Variance Materials Control 128,000 Standard cost for direct labor per pair of shoes: 1 hour at a standard price of $100 each. The company produced 8,500 shoes in June with 8,470 hours and incurred total direct labor costs of $832,000.
Accounting Capstone - Budget Performace Variance Report
H
The following direct materials and direct labor data pertain to the operations of Ivanhoe Company for the month of August. Actual labor rate Actual materials price Standard labor rate Costs Standard materials price Actual hours incurred and used (a) Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used $15 $180 $14.50 $182 Quantities Total materials variance Materials price variance Total labor variance Materials quantity variance $ Compute the total, price, and quantity variances for materials and labor. $ LA $ per hour per ton per hour per ton $ LA ↑ 4,700 hours 1,900 tons 4,760 hours 1,890 tons M < <
Required:1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned toeach product.2. Calculate the predetermined departmental overhead rates and calculate the overheadassigned to each product.3. Using departmental rates, compute the applied overhead for the year. What is the under- oroverapplied overhead for the firm?4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement3, assuming it is not material in amount. What additional information would you need ifthe variance is material to make the appropriate journal entry?
A business is reporting on materials cost variances for the month. The report indicates a large favorable materials price variance and a large unfavorable materials quantity variance. Discuss reasons (or provide explanations) that might have caused these off-setting variances.
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies. Indirect labor Depreciation Cost Formula $16,800+ $0.17 per machine-hour $38,600+ $1.90 per machine-hour $0.40 per machine-hour $94,700+ $2.10 per machine-hour $67,700 Actual Cost in March $ 22,850 $ 79,900 $9,800 $ 148, 100 $ 69,400 During March, the company worked 23,000 machine-hours and produced 17,000 units. The company had originally planned to work 25,000 machine-hours during March.…