The Aurora Company produces and sells one product. A standard cost card for the product follows: Standard Cost Card-per unit of product: Direct materials, 5 yards at $4.20 $21.00 Direct labour, 1.5 hours at $15.00 $22.50 Variable overhead, 1.5 hours at $4.50 $6.75 Fixed overhead, 1.5 hours at $8.00 $12.00 Standard cost per unit $62.25 Aurora Company manufactured and sold 19,500 units of product during the year. A total of 85,800 yards of material was purchased during the year at a cost of $4.65 per yard. All of this material was used to manufacture the 19,500 units. The company had a balance of zero in both beginning and ending inventories for the year. The company worked 30,750 direct labour-hours during the year at a cost of $16.75 per hour. Overhead cost is applied to products on the basis of direct labour hours. The denominator activity level of direct labour hours was 23,800 hours. Budgeted fixed overhead costs shown on the flexible budget were $162,200, and actual fixed overhead costs were $168,000. Actual variable overhead costs were $95,000. Required: a. Compute the direct materials price and quantity variances for the year.

The Aurora Company produces and sells one product. A standard cost card for the product follows: Standard Cost Card-per unit of product: Direct materials, 5 yards at $4.20 $21.00 Direct labour, 1.5 hours at $15.00 $22.50 Variable overhead, 1.5 hours at $4.50 $6.75 Fixed overhead, 1.5 hours at $8.00 $12.00 Standard cost per unit $62.25 Aurora Company manufactured and sold 19,500 units of product during the year. A total of 85,800 yards of material was purchased during the year at a cost of $4.65 per yard. All of this material was used to manufacture the 19,500 units. The company had a balance of zero in both beginning and ending inventories for the year. The company worked 30,750 direct labour-hours during the year at a cost of $16.75 per hour. Overhead cost is applied to products on the basis of direct labour hours. The denominator activity level of direct labour hours was 23,800 hours. Budgeted fixed overhead costs shown on the flexible budget were $162,200, and actual fixed overhead costs were $168,000. Actual variable overhead costs were $95,000. Required: a. Compute the direct materials price and quantity variances for the year.

Name: The company worked 30,750 direct labour-hours during the year at a co
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Description: The company worked 30,750 direct labour-hours during the year at a cost of $16.75 per hour. Overhead cost isapplied to products on the basis of direct labour hours. The denominator activity level of direct labour hours was23,800 hours. Budgeted fixe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bulluck Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 3.5 grams 0.7 hours 0.7 hours The company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate Standard Price or Rate $ 1.00 per gram $ 11.00 per hour $ 2.00 per hour The variable overhead rate variance for July is: 3,000 units 11,370 grams 1,910 hours 12,100 grams $ 1.20 per gram $11.40 per hour $ 2.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Please only answer the total amount of fixed manufacturing overhead.
Glover Company makes three products in a single facility. These products have the following unit product costs: Product A B C Direct materials $ 32.80 $ 49.30 $ 55.70 Direct labor 20.20 22.80 13.60 Variable manufacturing overhead 1.20 0.60 0.90 Fixed manufacturing overhead 13.50 9.10 9.70 Unit product cost $ 67.70 $ 81.80 $ 79.90 Additional data concerning these products are listed below. Product A B C Mixing minutes per unit 1.20 1.20 0.20 Selling price per unit $ 58.00 $ 80.40 $ 73.90 Variable selling cost per unit $ 0.60 $ 1.10 $ 2.30 Monthly demand in units 2,000 3,300 1,300 The mixing machines are potentially the constraint in the production facility. A total of 6,520 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of…
The following standard cost card is provided for Navid Company's Product A: Direct material (3 lbs. @ $3.00 per lb.) Direct labor (2 hr @ $8.00 per hr.) Variable overhead (2 hr. @ $3.00 per hr.) Fixed overhead (1 hr. @ $3.00 per hr.) $ 9.00 16.00 6.00 3.00 Total standard cost per unit $34.00 The fixed overhead rate is based on total budgeted fixed overhead of $12,000. During the period, the company produced and sold 5,600 units at the following costs: Direct material 12,200 pounds @ $2.50 per pound Direct labor 5,350 hours @ $16.00 per hour Overhead $29,940 The standard manufacturing cost per unit is $34.00. What is the actual manufacturing cost per unit? (Do not round intermediate calculations.)
Assume the following information appears in the standard cost card for a business 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 $ 3.00 per hour $ 6.00 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 a business uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead spending variance? Multiple Choice $1,600 F $1,600 U $1,000 U $1,000 F
Milar Corporation makes a product with the following standard costs Standard Quantity Standard Price on or Hours 6.5 pounds Direct materials Direct labor Nariable overhead Rate. $ 6.00 per pound $25.00 per hour $11.50 per hour 0.8 hours 0.8 hours In January the company produced 3,360 units using 13.440 pounds of the direct material and 2.808 direct labor-hours, During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,200. The actual direct labor cost was S69,795 and the actual Varlable overhead cost Was $30,940. The company applies variable overhead on the basis of direct iabor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for January is Multiple Choice $405 F $405 U Windows Update S2.595U Countdown to goodnes... We're all set to do the restart you scheduled. Mc Graw Hill Prev 24 of 36 Nexflm Type here to search |耳 59 F Mostly cloudy 8:34 AM 10/21/2021 DELL F1 F2 F3 F4 F5 F6 F7…
Assume the following information appears in the standard cost card for a company that makes only one product: Standar Quantity or Hours Standar Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 16.90 per hour $ 33.80 Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00 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. What is the direct labor rate variance?
S Direct materials (cork board) Direct labor Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Price (Rate) $ 2.30 per sq. ft. $10.00 per hr. Standard Unit Cost Standard Quantity 3.00 sq. ft. 1 hrs. $ 6.90 10.00 Variable manufacturing overhead. (based on direct labor hours) Fixed manufacturing overhead ($58,000+145,000 units) 1 hrs. $ 0.55 per hr. 0.55 0.40 Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard used Cost of corkboard used Number of labor hours worked Direct labor cost 125,000 390,000 $ 936,000 135,000 $1,228,500 Variable overhead cost Fixed overhead cost $ 71,000 $ 53,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. 2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye. 3. Calculate the variable overhead rate, efficiency, and total spending variances for…
The following standard costs were developed for one of the products of ELJAY Sdn Bhd (ESB): STANDARD COST PER UNIT RM Direct materials Direct labor 3 feet @ RM4.00 per foot 5 hours @ RM8.00 per hour 5 hours @ RM4.00 per hour 5 hours @ RM6.00 per hour 12.00 40.00 Variable overhead Fixed overhead Total standard cost per unit 20.00 30.00 102.00 The following information is available regarding the company's operations for the period: Units produced Materials purchased Materials used Direct labor Overhead incurred: 40,000 240,000 feet at RM4.40 per foot 150,000 feet 220,000 hours at RM8.30 per hour Variable RM770,000 Fixed RM900,000 Budgeted fixed overhead for the period is RM960,000, and the standard fixed overhead rate is based on the expected capacity of 160,000 direct labor hours. REQUIRED: (a) Compute the following variances. Indicate whether it is Favorable (F) or Unfavorable (UF) variance. (i) material price variance
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Assuming the current ratio equals 2, which of the following would cause the current ratio to increase? O Accrual for payroll. Declaration of cash dividend. O Payment for inventory purchased on account. O Inventory purchased on account.
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 19.90 $ 15.20 $ 20.80 $ 23.20 Direct labor 12.20 8.70 10.50 7.40 Variable manufacturing overhead $ 1.60 $ 2.10 $ 2.00 $ 2.10 Fixed manufacturing overhead 10.80 11.90 8.80 10.70 Unit product cost 44.50 37.90 42.10 43.40 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 1.20 0.70 0.60 0.60 Selling price per unit $ 59.30 $ 51.70 $ 59.50 $ 55.60 Variable selling cost per unit $ 3.60 $ 1.50 $ 2.20 $ 3.60 Monthly demand in units 4,000 2,000 4,000 2,000 The grinding machines are potentially the constraint in the production facility. A total of 9,000 minutes are available per month on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations to…