Puvo. Inc., manufactures a single product in which variable manufacturing overhead is assigned onthe basis of standard direct labor-hours. The company uses a standard cost system and hasestablished the following standards for one unit of product:StandardQuantityStandard Priceor RateStandardCostDirect materials5.90 pounds$0.70 per poundDirect labor0.50 hours$34.50 per hour$ 4.13$ 17.25Variable manufacturing 0.50 hours$8.60 per hour$ 4.30During March, the following activity was recorded by the company:-The company produced 2.500 units during the month.-A total of 19.500 pounds of material were purchased at a cost of $13.680.-There was no beginning inventory of materials on hand to start the month: at the end of themonth. 3.720 pounds of material remained in the warehouse.-During March, 1.100 direct labor-hours were worked at a rate of $31.50 per hour.Variable manufacturing overhead costs during march totaled $14.161.-The direct materials purchases variance is computed when the materials are purchased.-The variable overhead rate variance for march is:a. $4.7017b. $5.046 uc. $5.0467d. $4,701 u

Variable overhead rate variance = Actual variable overhead costs - (Variable overhead standard rate…

Answered: Puvo. Inc., manufactures a single…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
Rocks Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: Â What is the activity rate for each cost pool?
Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Required: 1. Calculate the unit cost for June using the weighted average method. 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. 3. CONCEPTUAL CONNECTION Cassien had just finished implementing a series of measures designed to reduce the unit cost to 2.00 and was assured that this had been achieved and should be realized for Junes production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?
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Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?
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?
Puvd, Inc manulactures a single product in which varlable manufacturing overthead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product Standard Cost Standard Price Direct materials Direct labor Variable manufacturing overhead Standard Quantity 1.5 pounds 0.5 hours or Rate $ 6.75 per pound $21.00 per hour $ 5.00 per hour $ 10.12 $ 10.50 $ 2.50 0.5 hours During March, the following activity was recorded by the company: • The company produced 6,000 units during the month. A total of 12.500 pounds of material were purchased at a cost of $35.000. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 2.500 pounds of material remainedhe warehouse • During March, 3.200 direct labor-hours were worked at a rate of $21.50 per hour. • Varlable manufacturing overhead costs during March totaled $8,200. The direct materials purchases variance…
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:. Standard Price Standard Standard Quantity 6.50 poundS or Rate $1.30 per pound $40.50per hour Cost Direct materials Direct labor Variable manufacturing overhead $8.45 0.40 hours $ 16.20 $ 3.68 0.40 hours $ 9.20 per hour During March, the following activity was recorded by the company. - The company produced 3,100 units during the month. A total of 20O100 pounds of material were purchased at a cost of $14,280. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,320 pounds of material remained in the warehouse. During March, 1.160 direct labor-hours were worked at a rate of $37.50 per hour. Variable manufacturing overhead costs during March totaled $14.761. The direct materials purchases…

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