Soda Central, LLC. is a manufacturer of diamond glasses used by celebrities to drink their soda from. The company has had some difficulty maintaining records in the past, and needs the information in order to begin the budgeting process for the next period. The company has determined that the total direct labor variance in the prior period was a favorable $500 and that direct laborers were paid $1.50 less than anticipated. Management had budgeted for 6,500 hours to be logged based on the current level of production, however, 500 more hours were actually logged during production. What was the prior period's actual direct labor rate? $20.00 per direct labor hour $21.50 per direct labor hour $22.00 per direct labor hour $18.50 per direct labor hour None of the above are correct

Soda Central, LLC. is a manufacturer of diamond glasses used by celebrities to drink their soda from. The company has had some difficulty maintaining records in the past, and needs the information in order to begin the budgeting process for the next period. The company has determined that the total direct labor variance in the prior period was a favorable $500 and that direct laborers were paid $1.50 less than anticipated. Management had budgeted for 6,500 hours to be logged based on the current level of production, however, 500 more hours were actually logged during production. What was the prior period's actual direct labor rate? $20.00 per direct labor hour $21.50 per direct labor hour $22.00 per direct labor hour $18.50 per direct labor hour None of the above are correct

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter14: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 3BE: Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the...

See similar textbooks

Similar questions

The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased 29,000 units Materials Used 19,500 units You find a copy of the budget which shows that materials were budgeted at $0.50/unit. You know that the material price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers, which indicate the following: Material price variance $ 290 F Material efficiency variance $ 1,050 F What was the total standard cost of direct materials allowed during May? Multiple Choice $8,526. $10,800. $8,700. $10,584.
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased 23,000 units Materials Used 16,500 units You find a copy of the budget which shows that materials were budgeted at $0.50/unit. You know that the material price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers, which indicate the following: Material price variance $ 230 F Material efficiency variance $ 750 F What was the total standard cost of direct materials purchased during May? Multiple Choice $11,730. $11,270. $8,365. $11,500.
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased Materials Used 21,000 units 15,500 units You find a copy of the budget which shows that materials were budgeted at $0.50 per unit. You know that the materials price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers, which indicate the following: Materials price variance Materials efficiency variance $ 210 F $ 650 F What was the total standard cost of direct materials allowed during May? Multiple Cholce $6,958 $8.232 $7,100 $8.400
Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with th information being generated by the system. A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Actual Planning Results 15,000 Budget 20,000 Variances 11,400 42,000 119,000 $ 12,000 45,000 142,500 $ 600 F 3,000 F 23,500 F 85,900 110,000 $368,300 80,000 110,000 $389,500 $21,200 F 5,900 U 0 Total cost After receiving a copy of this cost report, the supervisor of the Assembly Department stated. "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people…
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what they did. In reviewing the records, you find the following information for May: Materials Purchased Materials Used 38,000 units 24,000 units You find a copy of the budget which shows that materials were budgeted at $0.60 per unit. You know that the materials price variance is recorded at the time of purchase and you find some handwritten notes among the accountants work papers. which indicate the following: Materials price variance Materials efficiency variance $ 380 F $ 1,500 F What was the total standard cost of direct materials purchased during May? Multiple Cholce $22.420 $22,800 $14.628 $23,180
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased Materials Used 36,000 units 23,000 units You find a copy of the budget which shows that materials were budgeted at $0.60 per unit. You know that the materials price variance is recorded at the time of purchase and you find some handwritten notes among the accountants work papers, which indicate the following: Materials price variance Materials efficiency variance $ 360 F $ 1,400 F What was the total actual cost of the direct materials purchased during May? Multiple Cholce $13,800 $21,240 $21.600
Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost Actual Results 25,000 Planning Budget Variances 30,000 $ 5,700 $ 6,300 $ 600 F 15,400 16,500 1,100 F 50,600 57,000 6,400 F 63,100 61,000 2,100 U 91,000 91,000 $ 225,800 $ 231,800 $ 6,000 F After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people upstairs…
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs.Rammazzotti, Inc., had the following budgeted data: Unit sales for the year 26,000 Unit production for the year 26,000 Budgeted fixed overhead for the year: Supervision $ 800 Depreciation 2,000 Rent 100 Budgeted variable costs per unit: Direct materials $0.15 Direct labor 0.20 Supplies 0.02 Indirect labor 0.05 Power 0.02 The following actually occurred: Actual unit sales for the year 24,000 Actual unit production for the year 28,000 Actual fixed overhead for the year: Supervision $ 850 Depreciation 2,000 Rent 100 Actual variable costs: Direct materials $3,500 Direct labor 4,900 Supplies 530 Indirect labor 1,250 Power 470 The total budgeted costs for the year were a.$14,340. b.$11,440. c.$13,510. d.$13,460.
Bonita Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Bonita is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (a) Your answer is incorrect. (1) One mobile safe (2) Mobile Safes Walk-in Safes 200 50 One walk-in safe $ 300 450 800 The total estimated manufacturing overhead was $272,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) 200 350 1,700 per unit per unit
Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: Machine-hours Variable costs: Supplies Scrap Indirect materials. Fixed costs: Wages and salaries. Equipment depreciation Total cost Assembly Department Cost Report For the Month Ended March 31 Actual Results 15,000 Required 1 Required 2 Required 3 $ 9,900 35,000 101,000 Machine-hours (q) Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people upstairs complain…
Rudick Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per Month Variable Element per Well Serviced Revenue $4,500 Employee salaries and wages $47,400 $1,200 Servicing materials $ 700 Other expenses $29,500 When the company prepared its planning budget at the beginning of July, it assumed that 34 wells would have been serviced. However, 36 wells were actually serviced during July. The activity variance for revenue for July would have been closest to:
Pickrel Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element Variable Element per Well per Month Serviced Revenue $5,500 Employee salaries and wages $53,700 $1,300 Servicing materials other expenses $ 600 $34,400 When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November. The amount shown for "Servicing materials" in the planning budget for November would have been closest to: Multiple Choice $19,000 $16,200 $16,548 $18,600