8 part 1 Trini Company set the following standard costs per unit for its single productDirect materials (30 pounds @ $5.50 per pound)Direct labor (7 hours@ $14 per hour)Variable overhead (7 hours@ $6 per hour)Fixed overhead (7 hours @ $12 per hour)Standard cost per unitOverhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% ofthe company's capacity of 62,000 units per quarter. The following additional information is available.Operating LevelsProduction (in units)Standard direct labor hours (7 DLH/unit)Budgeted overhead (flexible budget)Fixed overheadVariable overhead$ 165.0098.0042.0084.00$ 389.0070%43,400303,800$ 4, 166,400$ 1,822, 800Direct materials (1,674, 000 pounds @ $5.50 per pound)Direct labor (390, 600 hours $14 per hour)Overhead (390, 600 hours @ $18 per hour)Standard (budgeted) costActual costs incurred during the current quarter follow.Direct materials (1,658, 000 pounds @ $7.60 per pound)Direct labor (386, 600 hours $12.00 per hour)Fixed overheadVariable overheadActual cost80%49,600347, 200Required:(a) Compute the variable overhead spending and efficiency variances.(b) Compute the fixed overhead spending and volume variances.(c) Compute the overhead controllable variance.$ 4, 166, 400$ 2,083, 200During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labortotaled 386,600 hours. Units produced were assigned the following standard costs.$ 9,207,0005,468, 4007,030, 800$ 21, 706, 20090%55,800390, 600$ 12, 600, 8004,639, 2003,321, 4003,109, 400$ 23,670, 800$ 4,166,400$ 2,343, 600 Required ARequired B Required CCompute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "cost per unit" and "rate per hour" answers to 2 decimal places.)Flexible BudgetStandard Cost (VOH applied)Actual Variable OH Cost

Name: 8 part 1 Trini Company set the following standard costs per unit for i
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Description: 8 part 1 Trini Company set the following standard costs per unit for its single productDirect materials (30 pounds @ $5.50 per pound)Direct labor (7 hours@ $14 per hour)Variable overhead (7 hours@ $6 per hour)Fixed overhead (7 hours @ $12 per hour)St

AVR = Actual overheads incurred / Actual direct labor hours As per the requirement, I have done part…

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per unit 101 Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 per hour) Standard cost per unit $ 165.00 98.00 Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead During the current quart the con 42.00 84.00 $ 389.00 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 62,000 units per quarter. The following additional information is available. Operating Levels 80% 49,600 347, 200 70% 43,400 303, 800 $ 4,166,400 $ 1,822, 800 $ 4,166, 400 $ 2,083, 200 90% 55,800 390, 600 $ 4,166, 400 $ 2,343, 600 stod at 90% of capacity and produced FF 900 uniter notual direct Inbor

per unit 101 Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 per hour) Standard cost per unit $ 165.00 98.00 Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead During the current quart the con 42.00 84.00 $ 389.00 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 62,000 units per quarter. The following additional information is available. Operating Levels 80% 49,600 347, 200 70% 43,400 303, 800 $ 4,166,400 $ 1,822, 800 $ 4,166, 400 $ 2,083, 200 90% 55,800 390, 600 $ 4,166, 400 $ 2,343, 600 stod at 90% of capacity and produced FF 900 uniter notual direct Inbor

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...

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Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
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Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Moleno Company produces a single product and uses a standard cost system. The normal production volume is 120,000 units; each unit requires 5 direct labor hours at standard. Overhead is applied on the basis of direct labor hours. The budgeted overhead for the coming year is as follows: At normal volume. During the year, Moleno produced 118,600 units, worked 592,300 direct labor hours, and incurred actual fixed overhead costs of 2,150,400 and actual variable overhead costs of 1,422,800. Required: 1. Calculate the standard fixed overhead rate and the standard variable overhead rate. 2. Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance? 3. CONCEPTUAL CONNECTION Break down the total fixed overhead variance into a spending variance and a volume variance. Discuss the significance of each. 4. CONCEPTUAL CONNECTION Compute the variable overhead spending and efficiency variances. Discuss the significance of each.
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Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?