Prepare an income statement for management for the month endedJanuary 31, 2020 with the given information:Neo industries usesa standard costing accounting system.During August, it reported the following manufacturingvariances.Materials priceLabor quantityvariance1,220variance840UMaterials quantityvariance760FOverhead variance740ULabor price variance450In addition, 8,100 units of product were sold at 7 per unit.Each unit sold had a standard cost of 4.Selling and administrative expenses were 7,890 for the month.

Standard costing is an costing method in which it was used to identify variances between actual and…

Answered: Prepare an income statement for…

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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Prepare an income statement for the year ended December 31, through the gross profit for Baxter Company using the following information: Baxter Company sold 8,800 units at $135 per unit. Normal production is 9,200 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.) Enter favorable variances as negative numbers. Standard: 5 yards per unit at $6.30 per yard Actual yards used: 44,500 yards at $6.25 per yard Standard: 2.25 hours per unit at $16.00 Actual hours worked: 19,550 at $15.90 per hour Standard: variable overhead $1.05 per unit Standard: fixed overhead $202,400 (budgeted and actual amount) Actual total factory overhead: $237,500
A company's standards for its product are 8 pounds of direct materials at $13.20 per pound. For this period, the company produced 3,240 units, using 26,520 pounds of direct materials costing $358,020. The company uses a standard costing system. Prepare the entry to record direct materials variances and charge direct material costs to Work in Process Inventory. View transaction list Journal entry worksheet < Record direct materials and charge direct material costs to Work in Process Inventory. Note: Enter debits before credits. Transaction 1 General Journal Work in process inventory Direct materials price variance Direct materials quantity variance Record entry Clear entry Debit 358,020 Credit View general journal
The following labor standards have been established for a particular product: Standard labor hours per unit of output 8.7 hours Standard labor rate $18.10 per hour The following data pertain to operations concerning the product for November: Actual hours worked 3,800 hours Actual total labor cost $67,640 Actual output 500 units What is the direct labor rate variance for November?
Elm Industries uses a standard cost accounting system. During the month of May, Elm's actual total direct labor costs are $51,450. The direct labor rate variance is $1,800 unfavorable, and the direct labor efficiency variance is $750 favorable. What is the total amount of direct labor costs that Elm applies to its work in process inventory for the month of May? O $50,400 O $51,450 O $52,500 $53,250 O None of the above
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $12.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,500 hours Actual total labor cost $78,650 Actual output 900 units What is the labor efficiency variance for the month? Multinl e CholcA
The following labor standards have been established for a particular product: Standard labor hours per unit of output Standard labor rate The following data pertain to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 5,700 hours $ 98,610 4.9 hours $17.20 per hour 1,100 units Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance for the month? Note: 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.
Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Direct Materials Price Debit Credit Variance $1,000 Direct Materials Quantity $2,000 Variance $500 Direct Labor Rate Variance $3,000 Direct Labor Efficiency Variance Unadjusted Cost of Goods Sold equals $200,000. Which of the following would be FALSE when the year-end closing entry is made? O The Cost of Goods Sold account will be debited. O Adjusted Cost of Goods Sold will be $198,500. The Direct Labor Rate Variance account will be debited. O The Direct Materials Price Variance account will be credited.
ABC uses a standard cost accounting system. During January the company reported the following: $1,500 F Material Price Variance $1,300 U Material Quantity Variance $750 U Labour Price Variance $1,300 U Labour Quantity Variance $600 F Overhead Controllable Variance $4,000 U Overhead Volume Variance 12,000 Units were Sold $20 per Unit Selling Price $14 Standard Cost $11,000 Selling & Administration Costs Instructions Prepare an income statement for January 31, current year.
Anthon Corporation has provided the following information regarding last month's activities. Units produced (actual) Master production budget Direct materials Direct labor Overhead Standard costs per unit Direct materials Direct labor Variable overhead Actual costs Direct materials purchased and used Direct labor Overhead Direct materials Direct labor Variable overhead Fixed overhead 11,040 $ 241,164 204,624 281,967 Price Variance $ 3.96 per liter x 5 liters per unit of output $ 33.60 per hour x 0.50 hour per unit $ 30.30 per direct labor-hour Variable overhead is applied on the basis of direct labor-hours. Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. $ 242,580 (62,200 liters). 182,628 (5,340 hours)…
Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $10. During January, Amos incurred 3,415 hours of direct labor and paid $33,606 in wages in production of 16,600 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable. Direct labor rate variance Direct labor efficiency variance $ Click if you would like to Show Work for this question: Open Show.Work
The standard cost of product 5252 includes 1.9 hours of direct labor at $12.00 per hour. The predetermined overhead rate is $22 per direct labor hour. During July, the company incurred 4,000 hours of direct labor at an average rate of $12.30 per hour and $80,700 of manufacturing overhead costs. It produced 2,000 units. (a) Compute the total, price, and quantity variances for labor. Total labor variance 3160 Unfavorable Labor price variance 800 Unfavorable Labor quantity variance $ 2360 Unfavorable (b) Compute the total overhead variance. Total overhead variance $ 7300 Favorable
Alpine Productions uses a standard cost system for recording transactions. Alpine reported the following data for the year ended December 31:Sales revenues: $800,000Cost of goods sold (standard costing): $382,000Selling & administrative expenses: $105,000Variances: Sales revenue variance $4100 F Direct materials cost variance 30 U Direct materials efficiency variance 300 F Direct labor cost variance 65 U Direct labor efficiency variance 10 F Variable overhead cost variance 300 U Variable overhead efficiency variance 80 F Fixed overhead cost variance 430 U Fixed overhead volume variance 100 F What is the net operating income on a standard cost income statement? Group of answer choices $312,665 $421,765 $316,765 $313,000

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