Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The followingstandards have been established for the direct manufacturing costs per unit:Direct materials (2 kg at $7.50 per kilogram)$15.00 per unitDirect labour (3 hours at $12 per hour)$36.00 per unitVariable overhead$36,270Budgeted overhead for the month of April (based on expected activity of 11,160 direct labour hours) is as follows:Overhead is applied based on labour hours. The average activity per month is 12,090 direct labour hours. The company calculatesoverhead rates based on average activity. Results for the month of April are as follows:Fixed overhead24,180Units produced3,906Tulal overhead$60,450Direct materials used (8,060 kg)$55,614(a)Direct labour (11,780 hours)144,305Calculate the direct materials price, usage, and budget variances.Variable overhead35,340Fixed overhead24,800Direct materials price variance$Total costs$260,059Direct materials usage variance$There was no beginning or ending work in process inventoryTotal materials budget variance$

The objective of the question is to calculate the direct materials price, usage, and budget…

Answered: Shamrock Manufacturing Company uses a…

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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Mission Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information provided below (CMA adapted) Units produced Material moves per product line. Direct labor-hours per product line Budgeted material handling costs: $644,000 Wall Mirrors Specialty Windows 220 20 5 1,100 60 1,200 Under a traditional costing system that allocates overhead on the basis of direct labor-hours, the materials handling costs allocated to one unit of Specialty Windows would be Multiple Choice O $16.800 $54,900 $14,000 $22.700
Anthon Corporation has provided the following information regarding last month's activities. Units produced (actual) Master production budget Direct materials Direct labor Overhead Standard costs per unit Direct materials Direct labor Variable overhead Actual costs Direct materials purchased and used Direct labor Overhead 10,500 $ 237,600 201,600 267,000 $ 3.96 per liter x 5 liters per unit of output $ 33.60 per hour x 0.5 hour per unit $ 28.50 per direct labor-hour $ 207,480 (53,200 liters) 176,472 (5,160 hours) 272,000 (58% is variable) Variable overhead is applied on the basis of direct labor-hours Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variance- Note: Do not round intermediate calculations. Indicate the effect of each veriance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Puvo, Incorporated, manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Direct materials Direct labor Variable manufacturing overhead During March, the following activity was recorded by the company: The company produced 4,400 units during the month. • A total of 21,400 pounds of material were purchased at a cost of $15,580. ● • There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,620 pounds of material remained in the warehouse. During March, 1,290 direct labor-hours were worked at a rate of $50.50 per hour. Variable manufacturing overhead costs during March totaled $16,061. The variable overhead rate variance for March is: The direct materials purchases variance is computed when the materials are purchased. Multiple Choice Standard Quantity 7.80 pounds…
Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Estimated total manufacturing overhead Estimated total direct labor-hours $ 64.20 $ 17.60 Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) 1.4 DLHS 19,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost $50.40 $ 12.40 1 DLHs 69,000 units $1,854,640 95,600 DLHs Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional…
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A Company produced 80,900 units during its first year of operations and sold 77,100 at 21.60 per unit. The company chose practical activity-at 80,900 units to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials Direct labor Expected and actual variable overhead Expected and actual fixed overhead 457,085 87,372 300,139 432,006 Calculate the unit cost and the cost of finished goods inventory under absorption costing and calculate the unit cost and the cost of finished goods inventory under variable costing.
Bulluck Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 3.5 grams 0.7 hours 0.7 hours The company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate Standard Price or Rate $ 1.00 per gram $ 11.00 per hour $ 2.00 per hour The variable overhead rate variance for July is: 3,000 units 11,370 grams 1,910 hours 12,100 grams $ 1.20 per gram $11.40 per hour $ 2.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Nevada Corporation makes a product with the following standard costs: Standard Price or Rate Standard Quantity or Hours 6.4 ounces $ 0.4 hours S 0.4 hours $ 3.00 per ounce 13.00 per hour 5.00 per hour The company reported the following results concerning this product in March. Direct materials Direct labor Variable overhead. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate $ S $ O $3,277 F O $3,390 U O $3,390 F O $3,277 U Standard Cost Per Unit S S S 4,800 units 4,900 units 30,230 ounces 1,910 hours 32,600 ounces 2.90 per ounce 12.40 per hour 4.90 per hour 19.20 5.20 2.00 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is:
The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used 17,300 pounds at $4.70 per pound Actual direct labor used 17,935 hours at $32 per hour Actual units produced 32,600 Standard quantity and price per unit for direct materials 0.50 pound at $4.65 per pound Standard quantity and rate per unit for direct labor 0.50 hour at $33 per hour AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price (1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate and efficiency variances.
Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $321,600. During that time, the company produced 14,600 units of the M-008 and 2,200 units of the M-123. The direct costs of production were as follows. Direct materials Direct labor M-008 M-123 $116,800 $ 88,000 116,800 44,000 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Cost Driver Number of machine-hours Number of production runs Number of inspections. Total overhead Total $204,800 160,800 Costs $156, 600 70,000 95,000 $321,600 Activity Level M-898 M-123 2,000 8,000 20 30 20 20 Total 10,000 40 50 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product if direct…
Makena is a salaried, exempt employee with Caxkyat Stores. Makena is single with one dependent under 17 and earns $35,500 per year. Required: Complete the payroll register for the biweekly pay period ending March 11, 2022, with a pay date of March 16, 2022. Note: Round your dollar values to 2 decimal places. P/R End Date: Check Date: Name Makena Totals 03/11/2022 03/16/2022 Filing Status Dependents Hourly Rate or Period Wage M Company Name Number of Regular Hours \ Number of Overtime Hours Caxkyat Stores Commissions Regular Earnings 0.00 Overtime Earnings Gross Earnings $ 0.00

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