Question:35 A company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. These units were completed and transferred out and the department started and transferred out an additional 120,000 units during this period. The ending goods in process inventory consist of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Also, its beginning inventory included $6,600 of direct labor and $9,800 of overhead costs. The direct labor cost per equivalent unit is: A. $0.141B. $0.170 C. $0.200 D. $0.255 E. $0.310 The following is the budgeted sales information for an entity: January February March Sales $ 99,539.33 $1,28,898.60 $1,00,946.50 For the past few years, the gross profit has steadily been around 35.16%. Operating in Canada means the weather can sometimes get in the way of deliveries. Due to trucks with merchandise sometimes being late at the beginning of the month due to icy roads, the entity prefers to have 17.52 % of next month's sales held in inventory at the end of every month. What are the budgeted purchases for February (in units)? a. 43,598.89 b. 83,577.85 c. 80,402.50 d. 124,001.39 The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 6.4 hours Standard variable overhead rate $12.80 per hour The following data pertain to operations for the last month: Actual hours Actual total variable manufacturing overhead cost Actual output 2,650 hours $ 34,570 150 units What is the variable overhead efficiency variance for the month? A. $22,282 U B. $21,632 U C. $650 F D. $12,288 F
Question:35 A company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. These units were completed and transferred out and the department started and transferred out an additional 120,000 units during this period. The ending goods in process inventory consist of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Also, its beginning inventory included $6,600 of direct labor and $9,800 of overhead costs. The direct labor cost per equivalent unit is: A. $0.141B. $0.170 C. $0.200 D. $0.255 E. $0.310 The following is the budgeted sales information for an entity: January February March Sales $ 99,539.33 $1,28,898.60 $1,00,946.50 For the past few years, the gross profit has steadily been around 35.16%. Operating in Canada means the weather can sometimes get in the way of deliveries. Due to trucks with merchandise sometimes being late at the beginning of the month due to icy roads, the entity prefers to have 17.52 % of next month's sales held in inventory at the end of every month. What are the budgeted purchases for February (in units)? a. 43,598.89 b. 83,577.85 c. 80,402.50 d. 124,001.39 The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 6.4 hours Standard variable overhead rate $12.80 per hour The following data pertain to operations for the last month: Actual hours Actual total variable manufacturing overhead cost Actual output 2,650 hours $ 34,570 150 units What is the variable overhead efficiency variance for the month? A. $22,282 U B. $21,632 U C. $650 F D. $12,288 F
Chapter5: Process Costing
Section: Chapter Questions
Problem 5EA: A company has 1,500 units in ending work in process that are 30% complete after transferring out...
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Transcribed Image Text:Question:35
A company uses a process cost accounting system. Its Assembly
Department's beginning inventory consisted of 50,000 units, 3/4
complete with respect to direct labor and overhead. These units were
completed and transferred out and the department started and
transferred out an additional 120,000 units during this period. The
ending goods in process inventory consist of 40,000 units that are 1/4
complete with respect to direct labor and overhead. All direct materials
are added at the beginning of the process. The department incurred
direct labor costs of $24,000 and overhead costs of $32,000 for the
period. Also, its beginning inventory included $6,600 of direct labor and
$9,800 of overhead costs. The direct labor cost per equivalent unit is:
A. $0.141B. $0.170 C. $0.200 D. $0.255 E. $0.310
The following is the budgeted sales information for an entity:
January
February
March
Sales
$ 99,539.33 $1,28,898.60 $1,00,946.50
For the past few years, the gross profit has steadily been around
35.16%. Operating in Canada means the weather can sometimes get in
the way of deliveries. Due to trucks with merchandise sometimes being
late at the beginning of the month due to icy roads, the entity prefers to
have 17.52 % of next month's sales held in inventory at the end of
every month. What are the budgeted purchases for February (in units)?
a. 43,598.89 b. 83,577.85 c. 80,402.50 d. 124,001.39
The following standards for variable manufacturing overhead have been
established for a company that makes only one product:
Standard hours per unit of output
6.4 hours
Standard variable overhead rate
$12.80 per hour
The following data pertain to operations for the last month:
Actual hours
Actual total variable manufacturing overhead cost
Actual output
2,650 hours
$ 34,570
150 units
What is the variable overhead efficiency variance for the month?
A. $22,282 U
B. $21,632 U
C. $650 F
D. $12,288 F
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