ParagraphQuestion 1:WPC Company's Budget and actual costs per unit are provided below for the most recent period. Duringthis period, 700 units were actually produced.ProductStandard CostProductActual CostMaterialsMetresUnit Price Per MetreStandard$2.00$10.00Actual5.2$2.20$11.44Direct labourHoursHourly RateStandard3$5.00$15.00$17.60ActualVariable3.2$5.50overheadHoursHourly Rate$12.00$3.00$3.10Standard$13.02$42.06Actual4.2Total unit cost$37.00Required:Given the information above, compute the following variances. Also indicate if the variances arefavorable or unfavorable.1. Materials price variance2. Materials quantity variance3. Direct labour rate variancens: OnDELLF6F7F8F9F10F11F12 A A AE E T T«AaBbCcAaBbCcAaBbCcBody)AaBbCcNo SpacingAaBbCcE E TNormalHeading 1Heading 2Heading 3U ab x, x Aa v Iv A .StylesFontParagraph$12.00$3.00$3.10Standard4$13.02$42.06Actual4.2Total unit cost$37.00Required:Given the information above, compute the following variances. Also indicate if the variances arefavorable or unfavorable.1. Materials price variance2. Materials quantity variance3. Direct labour rate variance4. Direct labour efficiency variance5. Variable overhead rate variance6. Variable overhead efficiency variance7. Please give some managerial suggestions based on your calculation.Text Predictions: On

“Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Question 1: WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Unit Price Per Metre $2.00 Materials Metres $10.00 Standard $2.20 $11.44 Actual 5.2 Direct labour Hours Hourly Rate $5.00 $15.00 Standard $5.50 $17.60 Actual 3.2 Variable overhead Hours Hourly Rate $12.00 $3.00 $3.10 Standard 4 $13.02 $42.06 Actual 4.2 $37.00 Total unit cost Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable. 1. Materials price variance 2. Materials quantity variance 3. Direct labour rate variance

Question 1: WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Unit Price Per Metre $2.00 Materials Metres $10.00 Standard $2.20 $11.44 Actual 5.2 Direct labour Hours Hourly Rate $5.00 $15.00 Standard $5.50 $17.60 Actual 3.2 Variable overhead Hours Hourly Rate $12.00 $3.00 $3.10 Standard 4 $13.02 $42.06 Actual 4.2 $37.00 Total unit cost Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable. 1. Materials price variance 2. Materials quantity variance 3. Direct labour rate variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

dont give answer in image format
Please do not give solution in image format thanku
Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 Insurance Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs H =
Subject: acounting
Difference A company has numerous products and currently absorbs its production overheads based on labour hours; it has the following information: G H All products Budget (units) 2,400 3,000 Labour hours (£10/ hour) 1 hour 0.2 hours 1,000,000 Material cost / unit £2.00 £3.50 Material requisitions 4 8 4,000 Number of batches 6 3 10,000 Overheads are budgeted as £2,500,000 for production set-up related and £1,200,000 for materials handling and storage related. Required: Calculate the unit cost for products G and H if the company was to adopt activity based costing and comment on the difference.
Please do not give solution in image format thanku
0 Required information [The following information applies to the questions displayed below] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $11 per pound Direct labor: 3 hours at $12 per hour $ 55 36 Variable overhead: 3 hours at $7 per hour 21 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production. b. Direct laborers worked 63,000 hours at a rate of $13 per hour. c. Total variable manufacturing overhead for the month was $510,930. 5. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production,…
Paragraph Styles Question 1: WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Materials Unit Price Per Metre $2.00 $2.20 Metres Standard $10.00 Actual 5.2 $11.44 Direct labour Hours Hourly Rate $50 $5.50 Standard 3. $15.00 Actual 3.2 $17.60 Variable overhead Hours Hourly Rate Standard 4 $3.00 $12.00 $3.10 $13.02 Actual 4.2 Total unit cost $37.00 $42.06 Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.
Please do not give solution in image format thanku
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $215,160 Machine hours Assembly 189,550 Direct labor hours Inspecting 30,520 Number of inspections Setup 39,730 Number of setups Materials handling 36,960 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,180 4,600 9,780 Direct labor hours 4,460 6,690 11,150 Number of inspections 1,660 520 2,180 Number of setups 230 60 290 Number of loads 700 180 880 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the…
None
Dhapa