Question:68 The chief accountant reports the following information for LM Corp. Direct Materials Direct Labor Actual inputs Standard prices $ 4,900 $ 8,000 Standard inputs allowed for actual output * $ 4,700 $ 11,000 Actual costs $ 5,000 $10,000 1. For Direct Materials, compute the following variances: A. Flexible budget variance B. Price variance C. Quantity variance 2. For Direct Labor, compute the following variances: A. Flexible budget variance B. Rate variance C. Efficiency variance The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1,200 units, the actual direct labor cost was $32,000 for 2,000 direct labor hours worked, the total direct labor variance is The Refining Department of Sweet Sugar, Inc. had 79,000 tons of sugar to account for in July. Of the 79,000 tons, 49,000 tons were completed and transferred to the Boiling Department, and the remaining 30,000 tons were 50% complete. The materials required for production are added at the beginning of the process. Conversion costs are added equally throughout the refining process. Calculate the total equivalent units of production for direct materials.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 23E: (Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate...
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Question:68
The chief accountant reports the following information for LM Corp.
Direct
Materials
Direct
Labor
Actual inputs Standard prices
$ 4,900
$ 8,000
Standard inputs allowed for actual output *
$ 4,700
$ 11,000
Actual costs
$ 5,000
$10,000
1. For Direct Materials, compute the following variances:
A. Flexible budget variance
B. Price variance
C. Quantity variance
2. For Direct Labor, compute the following variances:
A. Flexible budget variance
B. Rate variance
C. Efficiency variance
The per-unit standards for direct labor are 2 direct labor hours at $15
per hour. If in producing 1,200 units, the actual direct labor cost was
$32,000 for 2,000 direct labor hours worked, the total direct labor
variance is
The Refining Department of Sweet Sugar, Inc. had 79,000 tons of sugar
to account for in July. Of the 79,000 tons, 49,000 tons were completed
and transferred to the Boiling Department, and the remaining 30,000
tons were 50% complete. The materials required for production are
added at the beginning of the process. Conversion costs are added
equally throughout the refining process.
Calculate the total equivalent units of production for direct materials.
Transcribed Image Text:Question:68 The chief accountant reports the following information for LM Corp. Direct Materials Direct Labor Actual inputs Standard prices $ 4,900 $ 8,000 Standard inputs allowed for actual output * $ 4,700 $ 11,000 Actual costs $ 5,000 $10,000 1. For Direct Materials, compute the following variances: A. Flexible budget variance B. Price variance C. Quantity variance 2. For Direct Labor, compute the following variances: A. Flexible budget variance B. Rate variance C. Efficiency variance The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1,200 units, the actual direct labor cost was $32,000 for 2,000 direct labor hours worked, the total direct labor variance is The Refining Department of Sweet Sugar, Inc. had 79,000 tons of sugar to account for in July. Of the 79,000 tons, 49,000 tons were completed and transferred to the Boiling Department, and the remaining 30,000 tons were 50% complete. The materials required for production are added at the beginning of the process. Conversion costs are added equally throughout the refining process. Calculate the total equivalent units of production for direct materials.
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