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…
Cutie Pie Company produces a single product. The standard cost for the product follows: Direct materials used in production 5,000 yards Direct materials purchased (6,000 yards) P 28,500 Direct labor costs incurred (2,100 hours) P 17,850 Variable manufacturing overhead incurred P 10,080 During the recent period, the company produced 1,200 units of product. Various costs associated with the production of these units are applied to products on the basis of direct labor hours. Other information are as follows: Direct materials (4 yards @ P5) P 20 Direct labor (1.5 hours @ P10) P 15 Variable manufacturing overhead (1.5 hours @ P4) P 6 The company record all variances at the earliest time possible. The materials quantity variance for the period is
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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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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
In September, Bubbles Company produced 1,000 units of product. 2,080 units of raw materials were used at a total cost of $303,680. The actual direct labor hours used were equivalent to 97.60% of the standard direct labor hours at a cost of $62,464. Cottons standard costs to produce one unit of its product in thousands is: a. 2 units of raw material at $150 per unit; b. 1/2 hour of DL at $125 per hour. What is the direct labor rate variance?
The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit According to the activity-based costing system, the average cost of product YBY is closest to a. per unit $ 94.26 b. per unit $93.99 c. per unit $ 94.00 d.None of the given answer is correct e. per unit $ 95.77

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