Required informetion[The following information applies to the questions displayed below.jSaskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. Thefollowing standards have been set by the production-engineering staff and the controller.Direct Labor:Direct Material:Quantity, 0.25 hourQuantity, 4 kilogramsPrice, $8.60 per kilogramRate, $12.50 per hourActual material purchases amounted to 200,000 kilograms at $0.640 per kilogram. Actual costs incurred In the productionof 40,000 units were as follows:Direct labor:$137, 700 for 10,800 hours$188, 800 for 170,000 kilogramsDirect material: Required:Post the Journal entries prepared above to the appropriate T-accounts below. Be sure to select from the dropdown menu thetransaction number associated with each amount posted.Raw-Material InventoryDirect-Material Purchase Price Variance1.Work-in-Process InventoryDirect-Material Quantity VarianceAccounts PayableDirect-Labor Rate VarianceWages PayableDirect-Labor Efficiency VarianceCost of Goods Sold

Working Notes: 1. Accounts Payable = Actual purchase of material * Rate per KG = (200,000*$0.640) =…

Answered: Requlred Information [The following…

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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Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours 7.10 pounds 0.20 hours Standard Price or Rate $ 1.80 per pound $ 12.00 per hour During the most recent month, the following activity was recorded: a. 19,250.00 pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 400 hours of direct labor time were recorded at a total labor cost of $5,200. Required: 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance Standard Cost $ 12.78 $ 2.40 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no…
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours 4.6 pounds 0.2 hours Rate $ 2.50 per pound $18.00 per hour During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. b. The company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 750 hours of direct labor time were recorded at a total labor cost of $14,925. Standard Price or Materials price variance Materials quantity variance Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Answer is complete but…
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? b. What is the total indirect manufacturing cost incurred to make 20,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be…
Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material: Quantity, 0.28 hour Quantity, 7 kilograms Rate, $14.00 per hour Price, $0.66 per kilogram Actual material purchases amounted to 340,400 kilograms at $0.690 per kilogram. Actual costs incurred in the production of 46,000 units were as follows: Direct labor: $197,340 for 13,800 hours Direct material: $225,354 for 326,600 kilograms
Athena Can Company manufactures recyclable soft-drink cans. A unit ofproduction is a case of 12 dozen cans. The following standards have beenset by the production-engineering staff and the controller. Direct Labour: Direct Material:Quantity .25 hour Quantity, 4 kilogramsRate, $16 per hour Price, $0.80 per kilogram Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram.Actual costs incurred in the production of 50,000 units were as follows: Direct Labour: $211,900 for 13,000 hoursDirect Material: $170,100 for 210,000 kilograms REQUIRED:(a) Use the variance formulas to compute the direct-material price and quantityvariances and the direct-labour rate and efficiency variances. Indicate whethereach variance is favourable or unfavourable.(Hilton, p. 480, 9-30)(b) Refer to the data in the preceding exercise. Use diagrams similar to those in Figures6.1 and 6.2 to…
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.90 pounds $ 2.10 per pound $ 16.59 Direct labor 0.50 hours $ 5.00 per hour $ 2.50 During the most recent month, the following activity was recorded: Fourteen thousand eight hundred and fifity pounds of material were purchased at a cost of $2.00 per pound. All of the material purchased was used to produce 1,500 units of Zoom. 600 hours of direct labor time were recorded at a total labor cost of $4,200. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).
Required information [The following information applies to the questions displayed below.] Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material: Quantity, 0.10 hour Quantity, 3 kilograms Price, $0.30 per kilogram Rate, $5.00 per hour Actual material purchases amounted to 34,000 kilograms at $0.325 per kilogram. Actual costs incurred in the production of 10,000 units were as follows: Direct labor: $6,120 for 1,200 hours Direct material: $10,075 for 31,000 kilograms
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below. Direct materials Direct labor Standard Quantity or Hours 7.80 pounds 0.30 hours Standard Price or Rate $ 2.30 per pound $ 8.00 per hour During the most recent month, the following activity was recorded: a. 25,900.00 pounds of material were purchased at a cost of $2.10 per pound b. All of the material purchased was used to produce 3,000 units of Zoom c. 700 hours of direct labor time were recorded at a total labor cost of $6,300 Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month 1. Materials price variance 1. Materials quantity variance 2 Labor rate variance 2 Labor efficiency variance Standard Cast $17.94 $2.40 Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for…
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours 6.80 pounds 0.20 hours Standard Cost $ 19.72 $ 1.80 Standard Price or Rate Direct materials Direct labor $ 2.90 per pound $ 9.00 per hour During the most recent month, the following activity was recorded: a. 15,100.00 pounds of material were purchased at a cost of $2.60 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. C. 300 hours of direct labor time were recorded at a total labor cost of $3,300. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations…
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ? During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: Materials quantity variance $ 4,050 U Labor spending variance $ 2,180 U Labor efficiency variance $ 770 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production. c. Compute the…
Bramble Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-2 pound plastic at $6 per pound Direct labor-1.0 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (10,330 pounds) Direct labor (5,000 hours) Variable overhead Fixed overhead Total manufacturing costs Show Transcribed Text $64,046 61.000 52.122 21,578 The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,200 direct labor hours (5.200 units) for the month. The master budget showed total variable overhead costs of $36,400 ($7.00 per hour) and total fixed overhead costs of $36,400 ($7.00 per hour) Actual costs for October in producing 5.100 units were as follows. $198.746 Overhead volume variance Overhead controllable variance $ $12.00 12.00 $ 7.00 7.00 The…

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