The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:Standard Quantityor HoursDirect materialsDirect labour7.0 millilitres0.4 hoursStandard Priceor Rate$ 0.26 per millilitre$12.00 per hourStandardCost$1.82$4.80During the most recent month, the following activity was recorded:a. 25,000 millilitres of material was purchased at a cost of $0.21 per millilitre.b. All of the material was used to produce 3,000 bottles of Clean-All.c. 750 hours of direct labour time was recorded at a total labour cost of $9,000.Required:1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each varlance by selecting "F" forfavourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).)Materials price varianceMaterials quantity variance2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each varlance by selecting "F" forfavourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance).)Labour rate varianceLabour efficiency variance

Material variance:The difference between the actual direct material cost and budgeted direct…

Standard Quantity or Hours Direct materials Direct labour 7.0 millilitres 0.4 hours Standard Price or Rate Standard Cost $1.82 $ 0.26 per millilitre $12.00 per hour $4.80 During the most recent month, the following activity was recorded: 25,000 millilitres of material was purchased at a cost of $0.21 per millilitre. . All of the material was used to produce 3,000 bottles of Clean-All. c. 750 hours of direct labour time was recorded at a total labour cost of $9,000.

Standard Quantity or Hours Direct materials Direct labour 7.0 millilitres 0.4 hours Standard Price or Rate Standard Cost $1.82 $ 0.26 per millilitre $12.00 per hour $4.80 During the most recent month, the following activity was recorded: 25,000 millilitres of material was purchased at a cost of $0.21 per millilitre. . All of the material was used to produce 3,000 bottles of Clean-All. c. 750 hours of direct labour time was recorded at a total labour cost of $9,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A-5
ckboard.com 2525portal Seved 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 6.8e pounds 0.20 hours Standard Price or Rate $ 2.90 per pound $ 9.00 per hour Direct materials Direct labor Standard Cost $ 19.72 $ 1.80 During the most recent month, the following activity was recorded: a. 15,100.00 pounds of material were purchased at a cost of $260 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 unfevoreble, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your…
7
None
Chapter 23 Mesa Bottle Company (MBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost per 100 Two-Liter Bottles Cost Category Direct labor Direct materials $1.86 6.48 0.56 Factory overhead Total $8.90 At the beginning of July, MBC management planned to produce 600,000 bottles. The actual number of bottles produced for July was 645,000 bottles. The actual costs for July of the current year were as follows: Actual Cost for the Month Ended Cost Category July 31, 2019 Direct labor $12,143 Direct materials 40,915 Factory overhead Total 3,780 $56,838 a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for MBC, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances direct materials, direct labor, and factory overhead for July. c. Interpret the budget performance report.
Do not provide answer in image format
None
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $215,160 Machine hours Assembly 189,550 Direct labor hours Inspecting 30,520 Number of inspections Setup 39,730 Number of setups Materials handling 36,960 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,180 4,600 9,780 Direct labor hours 4,460 6,690 11,150 Number of inspections 1,660 520 2,180 Number of setups 230 60 290 Number of loads 700 180 880 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the…
< Prev A company uses the following standard costs to produce a single unit of output. Direct materials Direct Manufacturing pounds at $0.70 per pound- 0.4 hour at $8.00 per hour labor $ 5.60 $ 3.20 $ 1.96 overhead 53 0.4 hour at $4.90 per hour - During the latest month, the company purchased and used 77,000 pounds of direct materials ata price of $0.90 per pound to produce 10,000 units of output Direct le month totaled $29,100 based on 3,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15 600 and fixed manufacturing overhee $10,000. Based on this information, the direct materials price variace for the month was: Multiple Choice $2,000 favorable $15,400 unfavorable $5,600 unfavorable $6,400 unfavorable Ne $5,600 favorable 23 of 25
7
Current Attempt in Progress Production costs chargeable to the Sanding Department in July in Monty Company are $41,160 for materials, $14,700 for labor, and $12,740 for manufacturing overhead. Equivalent units of production are 29,400 for materials and 19,600 for conversion costs. Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 15.25.) Unit costs $ Materials $ Conversion Costs
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 3.80 per hour $ 7.60 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. The actual variable overhead cost incurred during the period was $25,000. Assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead efficiency variance?