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Sheffield Irrigation, Inc. is known throughout the world for its H2O-X high-capacity water pump, used in irrigation systems. The pump's standard cost is as follows. The company's predetermined fixed overhead rate is based on an expected capacity of 100,000 direct labor hours per month. Standard Standard Standard Price Quantity Cost Direct materials $5 per pound 14 pounds $70 Direct labor $10 per DLH 4 DLH 40 Variable overhead $9 per DLH 4 DLH 36 Fixed overhead $4 per DLH 4 DLH 16 $162 During the month of September, the company produced 22,330 of the 25,000 pumps that had been scheduled for production in the

Sheffield Irrigation, Inc. is known throughout the world for its H2O-X high-capacity water pump, used in irrigation systems. The pump's standard cost is as follows. The company's predetermined fixed overhead rate is based on an expected capacity of 100,000 direct labor hours per month. Standard Standard Standard Price Quantity Cost Direct materials $5 per pound 14 pounds $70 Direct labor $10 per DLH 4 DLH 40 Variable overhead $9 per DLH 4 DLH 36 Fixed overhead $4 per DLH 4 DLH 16 $162 During the month of September, the company produced 22,330 of the 25,000 pumps that had been scheduled for production in the

FINANCIAL ACCOUNTING
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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The image is a form intended for calculating and inputting various types of variances in cost accounting. Each variance type is followed by an empty field for entering a monetary value, denoted by a dollar sign ($), and a dropdown menu. These fields are likely used for inputting and categorizing financial data. Here’s a detailed transcription of the fields: 1. **Direct materials price variance** - Input field: $ - Dropdown selection 2. **Direct materials quantity variance** - Input field: $ - Dropdown selection 3. **Direct labor rate variance** - Input field: $ - Dropdown selection 4. **Direct labor efficiency variance** - Input field: $ - Dropdown selection 5. **Variable overhead spending variance** - Input field: $ - Dropdown selection 6. **Variable overhead efficiency variance** - Input field: $ - Dropdown selection 7. **Fixed overhead spending variance** - Input field: $ - Dropdown selection These variances help in analyzing the financial performance by comparing actual costs to standard or budgeted costs, aiding in strategic decision-making and cost control.
Transcribed Image Text:The image is a form intended for calculating and inputting various types of variances in cost accounting. Each variance type is followed by an empty field for entering a monetary value, denoted by a dollar sign ($), and a dropdown menu. These fields are likely used for inputting and categorizing financial data. Here’s a detailed transcription of the fields: 1. **Direct materials price variance** - Input field: $ - Dropdown selection 2. **Direct materials quantity variance** - Input field: $ - Dropdown selection 3. **Direct labor rate variance** - Input field: $ - Dropdown selection 4. **Direct labor efficiency variance** - Input field: $ - Dropdown selection 5. **Variable overhead spending variance** - Input field: $ - Dropdown selection 6. **Variable overhead efficiency variance** - Input field: $ - Dropdown selection 7. **Fixed overhead spending variance** - Input field: $ - Dropdown selection These variances help in analyzing the financial performance by comparing actual costs to standard or budgeted costs, aiding in strategic decision-making and cost control.
**Sheffield Irrigation, Inc. Cost Analysis** Sheffield Irrigation, Inc. is renowned globally for producing the H2O-X high-capacity water pump, which is commonly used in irrigation systems. Below is a breakdown of the pump's standard costs, emphasizing its predetermined fixed overhead rate based on an expected capacity of 100,000 direct labor hours per month. **Standard Cost Breakdown:** | Component | Standard Price | Standard Quantity | Standard Cost | |--------------------|---------------------|-------------------|---------------| | Direct Materials | $5 per pound | 14 pounds | $70 | | Direct Labor | $10 per DLH | 4 DLH | $40 | | Variable Overhead | $9 per DLH | 4 DLH | $36 | | Fixed Overhead | $4 per DLH | 4 DLH | $16 | | **Total Cost** | | | **$162** | **September Production Overview:** In September, Sheffield produced 22,330 of the planned 25,000 pumps. Here are the detailed statistics: - **Materials Used:** 356,270 pounds - **Direct Labor Payroll:** $793,200 for 95,400 direct labor hours - **Variable Overhead Costs:** $847,500 - **Fixed Overhead Costs:** $364,200 - **Materials Purchased:** 476,600 pounds of direct materials at $2,192,360 **Instructions for Calculating Variances:** You are tasked with calculating the direct materials, direct labor, and overhead variances for September. Please round per unit values to two decimal places (e.g., 52.75) and final answers to zero decimal places (e.g., 5,725). If any variance is zero, select "Not Applicable" and enter 0 for the amounts.
Transcribed Image Text:**Sheffield Irrigation, Inc. Cost Analysis** Sheffield Irrigation, Inc. is renowned globally for producing the H2O-X high-capacity water pump, which is commonly used in irrigation systems. Below is a breakdown of the pump's standard costs, emphasizing its predetermined fixed overhead rate based on an expected capacity of 100,000 direct labor hours per month. **Standard Cost Breakdown:** | Component | Standard Price | Standard Quantity | Standard Cost | |--------------------|---------------------|-------------------|---------------| | Direct Materials | $5 per pound | 14 pounds | $70 | | Direct Labor | $10 per DLH | 4 DLH | $40 | | Variable Overhead | $9 per DLH | 4 DLH | $36 | | Fixed Overhead | $4 per DLH | 4 DLH | $16 | | **Total Cost** | | | **$162** | **September Production Overview:** In September, Sheffield produced 22,330 of the planned 25,000 pumps. Here are the detailed statistics: - **Materials Used:** 356,270 pounds - **Direct Labor Payroll:** $793,200 for 95,400 direct labor hours - **Variable Overhead Costs:** $847,500 - **Fixed Overhead Costs:** $364,200 - **Materials Purchased:** 476,600 pounds of direct materials at $2,192,360 **Instructions for Calculating Variances:** You are tasked with calculating the direct materials, direct labor, and overhead variances for September. Please round per unit values to two decimal places (e.g., 52.75) and final answers to zero decimal places (e.g., 5,725). If any variance is zero, select "Not Applicable" and enter 0 for the amounts.
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