Sharjah Dates Valley Orchards, Inc. (SVO), developed standard costs for direct material and direct labor. In 2011, SVO estimated the following standard costs for one oftheir most well loved products, the SVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and minceingredients in addition to the apples. (2x2-4)Budgeted quantity. Budgeted price1.5 pounds0.25 hours$7.25 per pound$1.00 per bourDirect materialsDirect laborDuring September, SVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 and 320 direct labor hours at an averagewage of S14.25 per hourSeplember's direct material price variance is:A) $468.75 favorableB) S468.75 unfavorableC) S75.00 unfavorableDI None of these answers are correct

Direct material price variance means variance in standard cost and actual cost of materials due to…

Answered: Sharjah Dates Valley Orchards, Inc.…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 3PA: Lean accounting Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar...

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Budgeting; direct material usage, manufacturing cost, and gross margin. Xander ManufacturingCompany manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 36skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $6 per gallon. All other materials are indirect. At the beginning of the year Xander has an inventory of 458,000 skeins of wool at a costof $961,800 and 4,000 gallons of dye at a cost of $23,680. Target ending inventory of wool and dye is zero.Xander uses the FIFO inventory cost-flow method.Xander blue rugs are very popular and demand is high, but because of capacity constraints the firmwill produce only 200,000 blue rugs per year. The budgeted selling price is $2,000 each. There are no rugs inbeginning inventory. Target ending inventory of rugs is also zero.Xander makes rugs by hand, but uses a machine to dye the wool. Thus, overhead costs are accumulated in two cost pools—one for weaving and the other for dyeing.…
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Blue Spruce Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 5,040 units are as follows. Per Unit Total Direct materials $ 110 Direct labor $ 70 Variable manufacturing overhead $ 10 Fixed manufacturing overhead $ 151,200 Variable selling and administrative expenses $ 10 Fixed selling and administrative expenses $ 128,520 Blue Spruce Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window line. A total of $1,280,160 in assets is committed to production of the new tinted window.
The Anazi Leather Company manufactures leather handbags and moccasins. The company has been using the factory overhead rate method but has decided to evaluate the multiple production department factory overhead rate to allocate factory overhead. The factory overhead estimated per unit together with direct materials and direct labor will help determine selling prices. Handbags = 60,000 units, 3 hours of direct labor Moccasins = 40,000 units, 2 hours of direct labor Total Budgeted factory overhead cost = $360,000 The company has two different production departments: Cutting and Sewing. The cutting department has a factory overhead budget of $80,000. Each unit will require 1 direct labor hour or a total of 100,000 direct labor hours. The Sewing Department estimates factory overhead in the amount of $280,000. Handbags require 2 hours of sewing time and Moccasins require 1 hour for a total of 160,000 labor hours. Calculate the total factory overhead to be allocated to each product using…
Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume Processing Hours (Cases) Per Case Tortilla chips Potato chips Pretzels 4,500 5,400 5,400 15,300 Tortilla chips Potato chips $28,280 70,086 7,992 16,600 39,347 22,132 $184,437 Pretzels 0.15 Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $ per processing hour Factory Overhead 0.10 b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted…
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House - Mate for residences. Budgeted and actual operating data for the year 2020 were as follows Static Budget Victor House-Mate Total 6,600 $1,560,000 27,000 $3,140,000 Number sold 33,600 $4,700,000 Contribution margin Actual Results Victor House-Mate Total Number sold Contribution margin 5,400 $1,400,000 38,000 $4,130,000 43,400 $5,530,000 What is the total flexible - budget variance in terms of the contribution margin? (Round intermediary calculations to the nearest dollar.) A. $4,408,000 unfavorable O B. $152,400 unfavorable O C. $1,274.400 favorable O D. $152,400 favorable

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