Sheridan Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.Direct materials (8 pounds at $3.30 per pound)Direct labor (1 hours at $12.00 per hour)$26.40$12.00During the month of April, the company manufactures 240 units and incurs the following actual costs.Direct materials purchased and used (2,300 pounds)$8,050Direct labor (280 hours)$3,304Compute the total, price, and quantity variances for materials and labor.Total materials variance$Materials price variance$Search

1.Total material variance = (SQ × SP) - Actual material costWhere:SQ is the standard quantity of…

Answered: Sheridan Inc., which produces a single…

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 commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Standard Price or Rate $2.90 per pound $9.00 per hour Quantity or Standard Hours Cost Direct materials 6.80 pounds $19.72 Direct labor 0.20 hours $ 1.80 During the most recent month, the following activity was recorded: a. Fifteen thousand one hundred 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…
Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.40 per hour. During October, the company actually uses 20,500 hours of direct labor at a $340,300 total cost to produce 7,000 units. In November, the company uses 24,500 hours of direct labor at a $407,925 total cost to produce 7,400 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. (2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?
During June, Danby Company's material purchases amounted to 10,920 pounds at a price of $5.30 per pound. Actual costs incurred in the production of 2,100 units were as follows: Direct labor: Direct material: $74,693 ($11.30 per hour) $45,633 ($5.30 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Quantity, 3 hours per unit Rate, $11.00 per hour Direct Material: Quantity, 4 pounds per unit Price, $5.10 per pound ok at Required: Fill in the amounts in the tables below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no "Actual Price" and "Standard Price" to 2 decimal places.) Direct-Material Price and Quantity Variances Actual Material Cost Projected Material Cost Standard Material Cost Actual Quantity Actual Price Actual Quantity Standard…
Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $26,000. Additional estimated information is given below. Totes Direct materials cost per unit $30 Direct labor cost per unit $52 Number of units 510 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) A. 86.15% OB. 1.68% OC. 98.04% OD. 53.15% Satchels $45 $64 350
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…
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BrightWater, LLP uses a standard costing system to collect costs related to the production of its mineral-infused water. The direct labor standard for each unit is 1.25 hours at a standard cost of $11.00 per hour. During the month of November, BrightWater’s unit production used 9,820 direct labor hours at a total direct labor cost of $106,547. This resulted in production of 8,500 units for November. What is BrightWater’s labor efficiency variance for November? Select one: a. $10,328 favorable. b. $13,047 unfavorable. c. $8,855 favorable. d. $14,520 unfavorable. e. Unable to calculate from the information given.
Richards Company manufactures small plastic widgets. The standard direct materials quantity required to produce one widget is 1/2 pound at a cost of $9 per pound. Every widget requires 7 direct labor hours at a standard cost of $19 per direct labor hour. During November, 1,500 widgets were produced using 770 pounds of materials costing $3,120. At the end of November, an examination of the labor cost records showed that the company used 10,400 direct labor hours (DLHr) at a cost of $18 per hour. What is the direct labor efficiency variance? $1,900 F B. $1,900 U C. $10,400 F D. $10,400 U
Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $7.80 per machine hour, and the balance of the overhead is applied at the rate of 250% of direct labor cost. Required: a. Calculate the cost per unit of October production of 4,500 toy flutes that required. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Raw materials costing $690. 23 direct labor hours costing $390. 25 machine hours. b. At the end of October, 3,920 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31.
Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours 6.00 pounds 0.50 hours During the most recent month, the following activity was recorded: a. 11,000.00 pounds of material were purchased at a cost of $2.10 per pound b. All of the material purchased was used to produce 1,500 units of Zoom. c. 500 hours of direct labor time were recorded at a total labor cost of $6,500. Required: Direct materials Direct labor 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 Price or Rate Standard Cost $ 2.30 per pound $10.00 per hour Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,…
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 7.40 pounds $ 2.60 per pound $ 19.24 $ 3.60 8.45 hours $ 8.00 per hour During the most recent month, the following activity was recorded: Direct materials Direct labor a. Twelve thousand one hundred pounds of material were purchased at a cost of $2.50 per pound. b. All of the material purchased was used to produce 1,500 units of Zoom. c. 575 hours of direct labor time were recorded at a total labor cost of $5,750. Required: 1. Compute the materials price and quantity varlances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values. Round your…
Regent Corporation uses a standard cost system to account for the costs of its one product. Materials standards are 3 pounds of material at $14.00 per pound, and labor standards are 9 hours of labor at a standard wage rate of $10.5. During July, Regent Corporation produced 3,050 units. Materials purchased and used totaled 10,600 pounds at a total cost of $143,213. Payroll totaled $151,780 for 38,150 hours worked. Required: a. Calculate the direct materials price variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct materials spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero…

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