Question 5 A company has budgeted to use 20 kilograms of direct materials to produce 1 unit. Each kilogram has a cost of $7.00. The direct manufacturing labour budget is set at 2 hours per unit at a budgeted cost of $25 per hour. The company produces 300 units using 4,500 kilograms of materials. The company paid $6.50 for each kilogram. The company used a total of 675 labour hours at an actual cost of $23 per hour. Required 1. Calculate the flexible budget variance, price variance and efficiency variance for direct materials. 2. 3. Suppose 5,000 of kilogram of direct materials were purchased at a cost of $6.50 per kilogram. Price variances are calculated at the time of purchases and efficiency variances are calculated at the time of production. Calculate the price and efficiency variances under this approach. Calculate the flexible budget variance, price variance and efficiency variance for direct manufacturing labour.

Question 5 A company has budgeted to use 20 kilograms of direct materials to produce 1 unit. Each kilogram has a cost of $7.00. The direct manufacturing labour budget is set at 2 hours per unit at a budgeted cost of $25 per hour. The company produces 300 units using 4,500 kilograms of materials. The company paid $6.50 for each kilogram. The company used a total of 675 labour hours at an actual cost of $23 per hour. Required 1. Calculate the flexible budget variance, price variance and efficiency variance for direct materials. 2. 3. Suppose 5,000 of kilogram of direct materials were purchased at a cost of $6.50 per kilogram. Price variances are calculated at the time of purchases and efficiency variances are calculated at the time of production. Calculate the price and efficiency variances under this approach. Calculate the flexible budget variance, price variance and efficiency variance for direct manufacturing labour.

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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Chapter 23 Mesa Bottle Company (MBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost per 100 Two-Liter Bottles Cost Category Direct labor Direct materials $1.86 6.48 0.56 Factory overhead Total $8.90 At the beginning of July, MBC management planned to produce 600,000 bottles. The actual number of bottles produced for July was 645,000 bottles. The actual costs for July of the current year were as follows: Actual Cost for the Month Ended Cost Category July 31, 2019 Direct labor $12,143 Direct materials 40,915 Factory overhead Total 3,780 $56,838 a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for MBC, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances direct materials, direct labor, and factory overhead for July. c. Interpret the budget performance report.
Lean Accounting The annual budgeted conversion costs for a lean cell are $70,500 for 1,500 production hours. Each unit produced by the cell requires 18 minutes of cell process time.. During the month, 1,050 units are manufactured in the cell. The estimated materials costs are $52 per unit. (Round the per unit cost to the nearest cent and use in subsequent computations. If required, round your answers to the nearest dollar.) Journalize the following entries for the month: a. Materials are purchased to produce 1,110 units. b. Conversion costs are applied to 1,050 units of production. c. The cell completes 1,000 units, which are placed into finished goods. If an amount box does not require an entry, leave it blank. a. b.
Answer numbers 4-6.
For the month of June 2023, patient charges at Southfield Hospital (a not-for-profit hospital) were $2,940,000. Third-party payers were billed $1,900,000. The hospital estimated that contractual adjustments would reduce the amount collected from their-party payers to $1,790,000. Prepare the neccessary journal entry to record the contractual adjustments.
A company has the following budgeted and actual cost data for manufacturing 2,000 Product X units: Direct materials $50 per unit Direct labor $40 per unit Variable manufacturing overhead $ 5 $40,000 per year per unit Fixed manufacturing Overhead Product X sells for $200 per unit. Assume no beginning or ending inventories. The Gross Profit for selling 15 Product X units is %24
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Ace Widget Company is a process manufacturer. The company budgeted 11,500 direct labor hours, but it had actual direct labor hours of 12,000. The company produced 60,000 equivalent units, spending $300,000 on material. The labor rate is $15 per hour, and overhead is applied at a rate of $25 per direct labor hour. What is the total manufacturing cost per unit? a. $11.92 b. $15.00 c. $12.67 d. $13.00
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Subject: Acounting