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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 40P: The controller for Muir Companys Salem plant is analyzing overhead in order to determine appropriate...

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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.
Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH ● ● ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours Actual results for January: ● 2.0 machine hours 2.0 machine hours. Show Transcribed Text Show Transcribed Text 26,000 gallons were actually produced. Cost of DM purchased was $250,560 for 14,400 gallons of solution. DM used in production was 12,740 gallons. Cost of DL was $133,796 for 8,060 DL hours worked. Variable-MOH cost was $117,390 for 54,600 machine hours used. Fixed-MOH cost was $223,860. Fixed-MOH price variance $ $17.00 per gallon…
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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…
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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
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.
Four Seasons Industries has established direct labor performance standards for its maintenance and repair shop. However, some of the labor records were destroyed during a recent fire. The actual hours worked during August were 2,500, and the total direct labor budget variance was $1,300 unfavorable. The standard labor rate was $16 per hour, but recent resignations allowed the firm to hire lower-paid replacement worker for some jobs, and this produced a favorable rate variance of $3,500 for August. a. Calculate the actual direct labor rate paid per hour during August. b. Calculate the dollar amount of the direct labor efficiency variance for August. c. Calculate the standard direct labor hours allowed for the actual level of activity during August.
Pease Contractors is a local home remodeling company. In analyzing financial performance, the accountant compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at the time the annual plan is formulated and held constant for the entire year. The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for August are shown in the following schedule. Worker Classification Standard Direct Labor Rate per Hour Standard Direct Labor-Hours Allowed for Output Supervisor $ 50 1,800 Skilled 30 2,250 General 20 4,950 The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of August were as follows. Worker Classification Actual Direct Labor Rate per Hour Actual Direct Labor-Hours Supervisor $ 54 2,112 Skilled 32 2,112 General 18 5,376 Required: Calculate the dollar…
Pease Contractors is a local home remodeling company. In analyzing financial performance, the accountant compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at the time the annual plan is formulated and held constant for the entire year. The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for August are shown in the following schedule. Worker Classification Standard Direct Labor Rate per Hour Standard Direct Labor-Hours Allowed for Output Supervisor $ 50 1,800 Skilled 30 2,250 General 20 4,950 The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of August were as follows. Worker Classification Actual Direct Labor Rate per Hour Actual Direct Labor-Hours Supervisor $ 54 2,112 Skilled 32 2,112 General 18 5,376 Required: Calculate the dollar…