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Problem #6 ABC Manufacturing Company produces a single product and has gathered the following data about the key inputs to make its product: caw materials purchase price = $3.60 per pound aw materials incoming freight cost = $0.28 per pound aw materials receiving and handling costs = $0.09 per pound Amount of labor for a unit of product = 2 hours Wage rate per hour = $16.25 Labor benefits cost per hour = $1.85 Manufacturing overhead is allocated based on labor hours used The assigned manufacturing overhead rate is $4.90 per hour equired materials to make a unit of product = 2.8 pounds Allowance for waste in the production process for a unit = 0.4 pounds a) Calculate ABC's standard cost for each cost component of a unit of product (i.e., materials, labor and manufacturing overhead), as well as ABC's total standard cost for a unit of product. b) During the month of September, ABC produced 12,500 units using a total of 38,650 Ibs of material and incurring total materials costs of $160,784. he company also incurred 24,980 hours of manufacturing labor at an average hourly wage and benefits cost of $18.25, and manufacturing overhead costs totaled $119,780. or the month of September, calculate ABC's total variance, its direct material, direct labor and overhead variances and the breakdown of each component variance by price and quantity. Arrange your calculations so as to show unfavorable variances as negative numbers and favorable variances as positive numbers. Standard Total costs per standard Actual Sept. Total Price Quantity unit costs costs variance variance variance

Problem #6 ABC Manufacturing Company produces a single product and has gathered the following data about the key inputs to make its product: caw materials purchase price = $3.60 per pound aw materials incoming freight cost = $0.28 per pound aw materials receiving and handling costs = $0.09 per pound Amount of labor for a unit of product = 2 hours Wage rate per hour = $16.25 Labor benefits cost per hour = $1.85 Manufacturing overhead is allocated based on labor hours used The assigned manufacturing overhead rate is $4.90 per hour equired materials to make a unit of product = 2.8 pounds Allowance for waste in the production process for a unit = 0.4 pounds a) Calculate ABC's standard cost for each cost component of a unit of product (i.e., materials, labor and manufacturing overhead), as well as ABC's total standard cost for a unit of product. b) During the month of September, ABC produced 12,500 units using a total of 38,650 Ibs of material and incurring total materials costs of $160,784. he company also incurred 24,980 hours of manufacturing labor at an average hourly wage and benefits cost of $18.25, and manufacturing overhead costs totaled $119,780. or the month of September, calculate ABC's total variance, its direct material, direct labor and overhead variances and the breakdown of each component variance by price and quantity. Arrange your calculations so as to show unfavorable variances as negative numbers and favorable variances as positive numbers. Standard Total costs per standard Actual Sept. Total Price Quantity unit costs costs variance variance variance

Computer Networking: A Top-Down Approach (7th Edition)
Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
Section: Chapter Questions
Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
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Problem #6 ABC Manufacturing Company produces a single product and has gathered the following data about the key inputs to make its product: Raw materials purchase price = $3.60 per pound Raw materials incoming freight cost = $0.28 per pound Raw materials receiving and handling costs = $0.09 per pound Amount of labor for a unit of product = 2 hours Wage rate per hour = $16.25 Labor benefits cost per hour = $1.85 Required materials to make a unit of product = 2.8 pounds Allowance for waste in the production process for a unit = 0.4 pounds Manufacturing overhead is allocated based on labor hours used The assigned manufacturing overhead rate is $4.90 per hour 6a) Calculate ABC's standard cost for each cost component of a unit of product (i.e., materials, labor and manufacturing overhead), as well as ABC's total standard cost for a unit of product. 6b) During the month of September, ABC produced 12,500 units using a total of 38,650 Ibs of material and incurring total materials costs of $160,784. The company also incurred 24,980 hours of manufacturing labor at an average hourly wage and benefits cost of $18.25, and manufacturing overhead costs totaled $119,780. For the month of September, calculate ABC's total variance, its direct material, direct labor and overhead variances and the breakdown of each component variance by price and quantity. Arrange your calculations so as to show unfavorable variances as negative numbers and favorable variances as positive numbers. Standard Total costs per standard Actual Sept. Total Price Quantity unit costs costs variance variance variance Materials Labor Overhead Total
Transcribed Image Text:Problem #6 ABC Manufacturing Company produces a single product and has gathered the following data about the key inputs to make its product: Raw materials purchase price = $3.60 per pound Raw materials incoming freight cost = $0.28 per pound Raw materials receiving and handling costs = $0.09 per pound Amount of labor for a unit of product = 2 hours Wage rate per hour = $16.25 Labor benefits cost per hour = $1.85 Required materials to make a unit of product = 2.8 pounds Allowance for waste in the production process for a unit = 0.4 pounds Manufacturing overhead is allocated based on labor hours used The assigned manufacturing overhead rate is $4.90 per hour 6a) Calculate ABC's standard cost for each cost component of a unit of product (i.e., materials, labor and manufacturing overhead), as well as ABC's total standard cost for a unit of product. 6b) During the month of September, ABC produced 12,500 units using a total of 38,650 Ibs of material and incurring total materials costs of $160,784. The company also incurred 24,980 hours of manufacturing labor at an average hourly wage and benefits cost of $18.25, and manufacturing overhead costs totaled $119,780. For the month of September, calculate ABC's total variance, its direct material, direct labor and overhead variances and the breakdown of each component variance by price and quantity. Arrange your calculations so as to show unfavorable variances as negative numbers and favorable variances as positive numbers. Standard Total costs per standard Actual Sept. Total Price Quantity unit costs costs variance variance variance Materials Labor Overhead Total
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