The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standardlabor cost for a motor tune-up is given below:Motor tune-upStandardHours2.50StandardRate$33.00StandardCost$82.50The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recallsthat 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:Labor rate varianceLabor spending varianceRequired:$ 80 F$ 118 U1. Determine the number of actual labor-hours spent on tune-ups during the week.2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)1. Actual labor hourshours2. Actual hourly rateper hour

First we will plot all the given standard. Standard Rate = $33 per hourStandard Hours = 2.5 hours…

Answered: The auto repair shop of Quality Motor…

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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[The following information applies to the questions displayed below.] Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold only two jobs during March- Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $18,000 $25,000 2,200 1,100 3,300 Total manufacturing cost Job Q $10,500 $9,500 1,300 1,400 2,700 Molding 2,500 $11,250 $ 1.90 Fabrication 1,500 $15,750 2.70 $ Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-9, assume that…
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products based on machine-hours. The predetermined overhead rate was based on a cost formula that estimates $900,000 of total manufacturing overhead for an estimated activity level of 75,000 machine-hours. During the year, a large quantity of furniture on the market caused Luzadis to cut production and build inventories. The company provided the following data for the year: Machine-hours Manufacturing overhead cost Inventories at year-end: 60,000 $ 850,000 Raw materials Work in process (includes overhead applied of $36,000) Finished goods (includes overhead applied of $180,000) Cost of goods sold (includes overhead applied of $504,000) Required: 1. Compute the underapplied or overapplied overhead. 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. 3.…
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Tolkien Company started its operation on November 1 with no beginning inventories. It started two jobs during July-Job P and Job Q. Job P was completed and sold by the end of November. Job Q was completed but was not sold by the end of November. The company uses a plant-wide predetermined overhead rate based on direct labor-hours (DLHs) and applies MOH costs based on the actual DLHs. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of November): Estimated total fixed manufacturing overhead (MOH) Estimated variable manufacturing overhead cost per DLH Total actual manufacturing overhead costs incurred < BUDE Direct materials Direct labor cost Estimated DLHs Actual DLHs worked The ending inventory balance of Work-in-process: The ending inventory balance Finished Goods Inventory: 14 What was the estimated total FIXED MOH? $ $ 12,987 17,316 12,870 $ 11,895 None of the above Job P $ 17,500 $ 43,200 S…
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Prepare journal entries to record the April events. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $465,800, and management budgeted 34,000 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: April insurance cost for the manufacturing property and equipment was $1,850. The premium had been paid in January. Recorded $1,060 depreciation on an administrative asset. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). Paid factory utility bill, $6,550, in cash. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect…
Coronado Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes’ optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 49,000 direct labor hours. During March, the company worked on the following five jobs: Job BeginningBalance Direct Materialsadded duringMarch Direct Laboradded duringMarch Direct Labor Hoursadded duringMarch 134 $120,600 $6,000 $9,400 140 158 125,450 3,500 12,160 450 212 21,800 88,400 36,650 3,500 287 36,350 71,800 31,850 2,550 301 18,990 21,845 1,400 Total $304,200 $188,690 $111,905 8,040 Jobs 134 and 158 were started in January,…
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Frank Weston, supervisor of the Freemont Corporation's Machining Department, was upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: Machine-hours Direct labor wages Supplies Maintenance Utilities Freemont Corporation-Machining Department Cost Control Report For the Month Ended June 30 Supervision Depreciation Total Actual Results Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total 42,000 $ 81,800 25,300 24,300 22,000 49,000 49,000 83,000 83,000 $ 285,400 $ 276,800 Planning Budget 40,000 $ 79,600 23, 200 Actual Results "I just can't understand all of these unfavorable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know my department worked more efficiently last month than ever before. Instead, he tore me apart. I thought for a minute it…

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