General Accounting Superior Manufacturing has established the following standard costs for their main product:Standard Costs Per Unit Quantity Rate TotalDirect MaterialsDirect Labor8 pounds $5/pound $402.5 hours $18/hour $45During June 2024, the actual costs for producing 12,000 units were:Actual CostsQuantityRateTotalDirect Materials 98,000 pounds $4.80/pound $470,400Direct Labor32,000 hours $18.25/hour $584,000Calculate:A. Direct materials price and quantity variancesB. Direct labor rate and efficiency variances

Step 1: Define VariancesMaterial and labor variances measure the differences between standard and…

Answered: Superior Manufacturing has established…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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Similar questions

Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Plata produces two models of microwave ovens with the following activity demands: The companys normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. 230,000 b. 240,000 c. 280,000 d. 190,000
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
Isabella Company has developed the following standard costs for its product for 2019: ISABELLA COMPANY Standard Cost Card Product A Cost Element Standard Quantity × Standard Price = Standard Cost Direct materials 4 pounds $3 $12 Direct labor 3 hours 8 24 Manufacturing overhead 3 hours 4 12 $48 The company expected to produce 30,000 units of Product A in 2020 and work 90,000 direct labor hours. Actual results for 2020 are as follows: 31,000 units of Product A were produced. Actual direct labor costs were $746,200 for 91,000 direct labor hours worked. Actual direct materials purchased and used during the year cost $346,500 for 126,000 pounds. Actual variable overhead incurred was $155,000 and actual fixed overhead incurred was $205,000. Instructions Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or unfavorable. (a) Materials quantity variance. (b) Total direct labor variance. (c) Direct labor…
The following standard cost data are for Dito Ltd. for January 2019:Per unit:Direct material 15kg@$5/kgDirect labour 4hr@$12/hr During January, Dito produced 720 units of output, which was 30 units less than expected. Direct material purchased and used was 10,500 kg @ $5.25/kg. Direct labour was 2,900 hours @ 12.25/hr. Required: 1. What were the price and quantity variances for direct material, respectively?2. What were the rate and efficiency variances for direct labour, respectively?
Lyon Productions manufactures two products, Chevalier and Dame. Estimates for thecompany’s products for next year are provided below:Chevalier DameEstimated ProductionVolume6 000 4 000Direct Material Cost $30 / unit $50 / unitDirect Labour per Unit 3 hours @ $12 / hour 4 hours @ $12 / hourThe company’s estimated overhead of $400 000 can be identified with three major activities:order processing ($75 000), machine processing ($280 000) and product inspection ($45 000).These activities are driven by number of orders processed, machine hours, and inspectionhours respectively. Estimated activity levels for the next year are as follows:Chevalier Dame TotalOrders Processed 300 200 500Machine Hours 36 000 44 000 80 000Inspection Hours 4 000 16 000 20 000please calculate activity-based costing (ABC) assuming that Lyon Productions uses to apply overhead toproduction, calculate the total cost per unit for Chevalier and Dame if the estimatedproduction volume is attained

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