The computer system for Number 14, LLC, a manufacturer of basketball jerseys, fell victim to an internet virus. The manager was able to determine from various sources that 2,000 more yards were used in the production of 21,250 jerseys last period than purchased. Records show that the total direct material variance was $40,000 unfavorable. The direct material price variance was documented to be $120,000 unfavorable, which resulted from the actual cost per yard of direct material being $2 higher than the expected cost of $14 per yard. Additional documentation could not be found for the direct materials quantity variance. The amount of yards the company expected to use per jersey is O A. 3.2000 yards O B. 3.4000 yards O c. 3.6125 yards O D. 2.6487 yards O E. 3.0924 yards

The computer system for Number 14, LLC, a manufacturer of basketball jerseys, fell victim to an internet virus. The manager was able to determine from various sources that 2,000 more yards were used in the production of 21,250 jerseys last period than purchased. Records show that the total direct material variance was $40,000 unfavorable. The direct material price variance was documented to be $120,000 unfavorable, which resulted from the actual cost per yard of direct material being $2 higher than the expected cost of $14 per yard. Additional documentation could not be found for the direct materials quantity variance. The amount of yards the company expected to use per jersey is O A. 3.2000 yards O B. 3.4000 yards O c. 3.6125 yards O D. 2.6487 yards O E. 3.0924 yards

Name: The computer system for Number 14, LLC, a manufacturer of basketball
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: The computer system for Number 14, LLC, a manufacturer of basketball jerseys, fell victim to an internet virus. The manager was able to determine from various sources that 2,000 more yards were used in the production of 21,250 jerseys lastperiod tha

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

Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.90 per tube) Direct labor (1 hour @ $30 per hour) Variable overhead (1 hour @ $6.00 per hour) Fixed overhead (1 hour @ $12.00 per hour) Total standard cost per test Direct materials (2,310 test tubes) Direct labor (1,133 hours) Variable overhead Fixed overhead $3.80 $4,158 32,857 6,336 12,672 30.00 6.00 12.00 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when 1,100 tests were conducted, resulted in the following. $51.80 Monthly budgeted fixed overhead is $16,560. Revenues for the month were $73,700, and…
Drew Castello, general manager of Sunflower Manufacturing, was frustrated. He wanted the budgeted results, and his staff was not getting them to him fast enough. Drew decided to pay a visit to the accounting office, where Jeff Hollingsworth was supposed to be working on the reports. Jeff had recently been hired to update the accounting system and speed up the reporting process. “What’s taking so long?” Drew asked. “When am I going to get the variance reports?” Jeff sighed and attempted to explain the problem. “Some of the variances appear to be way off. We either have a serious problem in production, or there is an error in the spreadsheet. I want to recheck the spreadsheet before I distribute the report.” Drew pulled up a chair, and the two men went through the spreadsheet together. The formulas in the spreadsheet were correct and showed a large unfavorable direct labor efficiency variance. It was time for Drew and Jeff to do some investigating. After looking at the time records, Jeff…
PIM Industries Incorporated manufactures electronics components. Each unit costs $45 before the final test. The final test rejects, on average, 6% of the 60,000 units manufactured per year. The average rejection rate of the industry is 4%. A consultant has determined that poor lighting is the most likely cause of this high rejection rate. It would cost $175,000 to install adequate lighting in the assembly department, which would be useful for 5 years. With adequate lighting (which will cost an additional $6,500 of operating costs per year), the firm expects to reduce its rejection rate to no higher than the industry average. Required: 1-a. What would be the projected five-year impact on operating profit? Five-year projected effect on operating income 1-b. Based solely on the relevant cost analysis you performed, should the firm install the lighting? Yes O No
CompuWatch Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 935 tablets during December. However, due to LCD defects, the company actually used 960 LCD displays during December. Each display has a standard cost of $23.00. Nine hundred sixty (960) LCD displays were purchased for December production at a cost of $20,880. Determine the price variance, quantity variance, and total direct materials cost variance for December. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance $fill in the blank 1 Quantity variance $fill in the blank 3 Total direct materials cost variance $fill in the blank 5
Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 3 ounces of material for each pair of lenses. The standard cost per ounce of material is $12. During July, the Santa Clara location produced 6,000 pairs of sunglasses and used 17,750 ounces of materials. The cost of the materials during July was $12.25 per ounce, and there were no beginning or ending inventories. Note: Round answers to the nearest whole number, when needed. Required a. Determine the flexible budget materials cost for the completion of the 6,000 pairs of glasses. $ b. Determine the actual materials cost incurred for the completion of the 6,000 pairs of glasses and compute the total materials variance. $ actual materials cost $ ✰ total materials variance c. How much of the total variance was related to the price paid to purchase the materials? $ ÷ d. How much of the difference between the answers to requirements (a) and (b) was related to the…
Lucky Number 13, Inc. ran into some unfortunate luck, having their IT environment hacked by a foreign government. As a result of the hack, valuable information regarding direct material purchases and usage were stolen. A manager was able to pull previous records and determined that 3,000 fewer pounds were used in the production of 50,000 pairs of sweatpants last period than were purchased. Data also shows that the total direct material variance was $10,000 unfavorable. The direct material price variance was documented to be $150,000 favorable, which resulted from the actual cost per pound of direct material being $4.00 lower than the expected cost of $10.00 per pound. Additional documentation regarding the direct materials quantity variance could not be found. The number of pounds needed to produce each pair of sweatpants is OA. 0.986000 Pounds OB. 0.946000 Pounds OC. 0.974000 Pounds OD. 0.394000 Pounds
The director of Quality and Reliability department of Philips Semiconductor had received quality issue report from the incoming quality inspection of distribution centers. Below is given data: Distribution Center 1: Finished goods stocks of 30,500 lots for Apple with 2% electrical failure per lot and 25,600 lots for Samsung with 3.1% mechanical damage per lot. Distribution Center 2: Finished goods stocks of 27,500 lots for Apple with 1.78% electrical failure per lot and 34,500 lots for Samsung with 2.8% mechanical damage per lot The finished goods for Apple came from Site A with standard quantity per lot at 2,255 and finished goods for Samsung came from Site B with standard quantity per lot at 2,534 How much is internal failure cost if the manufacturing cost per unit for Apple is $1.85 and Samsung cost per unit at $1.25 a. b. Assuming the finished goods were accidentally shipped to customers without knowing the quality issue, how much is the external failure cost if the selling price…
Misty McDougall is the manager of the Adams Bagel Shop. The corporate office had budgeted her store to sell 2,600 ham sandwiches during the week beginning July 17. Each sandwich was expected to contain 7 ounces of ham. During the week of July 17, the store actually sold 3,200 sandwiches and used 22,900 ounces of ham. The standard cost of ham is $0.17 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $799. Ms. McDougall thought the variance was too high, but she had no accounting background and did not know how to register a proper objection. Required a. Determine the material usage variance. Note: Indicate the effect of the variance by selecting favorable (F) or unfavorable (U), and select "None" if there is no effect (i.e., zero variance). Material usage variance Prey 1 of 5 MacRock Next >
W Corporation assembles handheld computers. Each handheld computer takes six hours to assemble. The following data are for August 2018: Direct materials purchased $2,650,000 Conversion costs incurred $450,000 Direct materials used $2,500,000 Conversion costs allocated $500,000 W records direct materials purchased and conversion costs incurred at actual costs. It has no direct materials variances. When finished goods are sold, the backflush costing system “pulls through” standard direct material cost ($100 per unit) and standard conversion cost ($20 per unit). W produced 25,000 finished units in August 2018 and sold 24,500 units. The actual direct material cost per unit in August 2018 was $100, and the actual conversion cost per unit was $19. Required 1- Assume W uses a JIT production system and a backflush costing system with three trigger points: _ Purchase of direct materials and incurring of conversion costs _ Completion of good finished units of product _ Sale of finished…
Gadubhai
St.Ivory Hospital has been hit with a number of complaints about its food service from patients, employees as well as cafeteria customers. These complaints, coupled with a very tight local labor market, have prompted the organization to contact FINS about the possibility of an outsourcing arrangement. The hospital's business office has provided the following information for food service for the year just ended: food costs - $890,000; labor - $85,000; variable overhead - $35,000; allocated fixed overhead - $60,000; and cafeteria net income - $80,000. Conversations with FINS personnel revealed the following information: • FINS will charge St. Ivory Hospital $14 per day for each patient served. Note: This figure has been "marked up" by FINS to reflect the firm's cost of operating the hospital cafeteria. • St. Ivory's 250-bed facility operates throughout the year and typically has an average occupancy rate of 70%. • Labour is the primary driver for variable overhead. If an outsourcing…
A new factory manager was hired for a company that was experiencing slow production rates and lower production volumes than demanded by management. Upon investigation, the manager found that the workers were poorly motivated and not closely supervised. Midway through the quarter, an incentive program was initiated, and cash bonuses were given when workers hit their production targets. Within a short time, production output increased, but th bonuses had to be charged to the direct labor budget. This could produce an A. unfavorable direct materials cost variance B. unfavorable direct labor cost variance OC. unfavorable direct materials efficiency variance OD. unfavorable direct labor efficiency variance