Required information [The following information applies to the questions displayed below.] Textron Manufacturing Inc. assembles industrial testing instruments in two departments, assembly and testing. Operating data for the current and prior year follow: Assembly department Actual direct labor hours per instrument Actual wage rate per hour Standard direct labor hours per instrument Standard wage rate per hour Testing department Actual direct labor hours per instrument Actual wage rate per hour Standard direct labor hours per instrument Standard wage rate per hour Current Year 25 $ 53 26 $ 52 15 $42 16 $ 45 The firm assembled and tested 37,000 instruments in both years. Prior Year 30 $ 47 29 $45 17 $ 37 20 19 $38 Required: 1. Calculate the direct labor rate and efficiency variances for both departments in both years. 2. Calculate the direct labor partial operational productivity ratio for both departments in both years. (Round your answers to 4 decimal places.) 3. Calculate the partial financial productivity ratio for both departments in both years. (Round your answers to 4 decimal places.)
Required information [The following information applies to the questions displayed below.] Textron Manufacturing Inc. assembles industrial testing instruments in two departments, assembly and testing. Operating data for the current and prior year follow: Assembly department Actual direct labor hours per instrument Actual wage rate per hour Standard direct labor hours per instrument Standard wage rate per hour Testing department Actual direct labor hours per instrument Actual wage rate per hour Standard direct labor hours per instrument Standard wage rate per hour Current Year 25 $ 53 26 $ 52 15 $42 16 $ 45 The firm assembled and tested 37,000 instruments in both years. Prior Year 30 $ 47 29 $45 17 $ 37 20 19 $38 Required: 1. Calculate the direct labor rate and efficiency variances for both departments in both years. 2. Calculate the direct labor partial operational productivity ratio for both departments in both years. (Round your answers to 4 decimal places.) 3. Calculate the partial financial productivity ratio for both departments in both years. (Round your answers to 4 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
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Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![1.
2.
Required information
[The following information applies to the questions displayed below.]
3
Textron Manufacturing Inc. assembles industrial testing instruments in two departments, assembly and testing.
Operating data for the current and prior year follow:
Assembly department
Actual direct labor hours per instrument
Actual wage rate per hour
Standard direct labor hours per instrument
Standard wage rate per hour
Testing department
Actual direct labor hours per instrument
Actual wage rate per hour
Standard direct labor hours per instrument
Standard wage rate per hour
Current
Year
Rate variance (Prior year)
Rate variance (Current year)
25
$53
Efficiency variance (Prior year)
Efficiency variance (Current year)
Partial operational productivity ratio (Prior year)
Partial operational productivity ratio (Current year)
Partial financial productivity ratio (Prior year)
Partial financial productivity ratio (Current year)
26
$ 52
The firm assembled and tested 37,000 instruments in both years.
15
$ 42
16
$ 45
Required:
1. Calculate the direct labor rate and efficiency variances for both departments in both years.
2. Calculate the direct labor partial operational productivity ratio for both departments in both years. (Round your answers to 4
decimal places.)
3. Calculate the partial financial productivity ratio for both departments in both years. (Round your answers to 4 decimal places.)
Prior
Year
30
$ 47
29
$45
17
$37
19
$38
X Answer is not complete.
Assembly Department
$2,220,000 Unfavorable
$ 925,000 Unfavorable
$ 1,665,000✔ Unfavorable
$ 1,924,000 Favorable
Testing Department
$ 629,000✔
$ 1,665,000✔ Favorable
$2,812,000 Favorable
$ 1.665,000 Favorable
✓
✓
✓](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb476d682-0c1b-4d81-b957-84480e4ac6fd%2F9b298411-82b2-4243-869f-d006170839ae%2F0brn9qj_processed.png&w=3840&q=75)
Transcribed Image Text:1.
2.
Required information
[The following information applies to the questions displayed below.]
3
Textron Manufacturing Inc. assembles industrial testing instruments in two departments, assembly and testing.
Operating data for the current and prior year follow:
Assembly department
Actual direct labor hours per instrument
Actual wage rate per hour
Standard direct labor hours per instrument
Standard wage rate per hour
Testing department
Actual direct labor hours per instrument
Actual wage rate per hour
Standard direct labor hours per instrument
Standard wage rate per hour
Current
Year
Rate variance (Prior year)
Rate variance (Current year)
25
$53
Efficiency variance (Prior year)
Efficiency variance (Current year)
Partial operational productivity ratio (Prior year)
Partial operational productivity ratio (Current year)
Partial financial productivity ratio (Prior year)
Partial financial productivity ratio (Current year)
26
$ 52
The firm assembled and tested 37,000 instruments in both years.
15
$ 42
16
$ 45
Required:
1. Calculate the direct labor rate and efficiency variances for both departments in both years.
2. Calculate the direct labor partial operational productivity ratio for both departments in both years. (Round your answers to 4
decimal places.)
3. Calculate the partial financial productivity ratio for both departments in both years. (Round your answers to 4 decimal places.)
Prior
Year
30
$ 47
29
$45
17
$37
19
$38
X Answer is not complete.
Assembly Department
$2,220,000 Unfavorable
$ 925,000 Unfavorable
$ 1,665,000✔ Unfavorable
$ 1,924,000 Favorable
Testing Department
$ 629,000✔
$ 1,665,000✔ Favorable
$2,812,000 Favorable
$ 1.665,000 Favorable
✓
✓
✓
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