Standard Quantity Standard Price or Rate Standard Cost 5.8 pounds $ 0.60 per pound $33.50 per hour $3.48 $16.75 0.5 hours Variable manufacturing overhead 0.5 hours $8.50 per hour $4.25 During March, the following activity was recorded by the company: . The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. - 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 . During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. . Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for March is:

Standard Quantity Standard Price or Rate Standard Cost 5.8 pounds $ 0.60 per pound $33.50 per hour $3.48 $16.75 0.5 hours Variable manufacturing overhead 0.5 hours $8.50 per hour $4.25 During March, the following activity was recorded by the company: . The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. - 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 . During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. . Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for March is:

Name: 12 0Standard Quantity Standard Price or Rate Standard Cost5.8 pounds$
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Description: 12 0Standard Quantity Standard Price or Rate Standard Cost5.8 pounds$ 0.60 per pound$33.50 per hour$3.48$16.750.5 hoursVariable manufacturing overhead 0.5 hours$8.50 per hour$4.25Puvo, Incorporated, manufactures a single product in which variable man

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 11P: Overhead application rate Creole Manufacturing Inc. uses a job order cost system and standard costs....

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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Overhead costs: Required: 1. Calculate the four activity rates. 2. Calculate the unit costs using activity rates. Also, calculate the overhead cost per unit. 3. What if consumption ratios instead of activity rates were used to assign costs instead of activity rates? Show the cost assignment for the inspection activity.
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Isaac Engines Inc. produces three productspistons, valves, and camsfor the heavy equipment industry. Isaac Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows: The estimated direct labor rate is 20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is 235,200. a. Determine the plantwide factory overhead rate. b. Determine the factory overhead and direct labor cost per unit for each product. c. Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place. d. What does the report in (c) indicate to you?
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