The Costa Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct-cost categories (direct materials and direct manufacturing labor-both variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual results are for August E (Click the icon to view the results.) Some additional information about Costa Company's budget, standard costs and labor follows: A (Click the icon to view additional information.) - X Data Table Read the requirements Direct materials price variance (based on purchases) $179,300 F Requirement 1. Compute the listed amounts for August. Direct materials efficiency variance $770,500 U Direct manufacturing labor costs incurred 624,750 Determine the formula, then complete the computation for each. (Abbreviations used: DM = Direct materials, mfg. = manufacturing, OH = Overhead.) Variable manufacturing overhead flexible-budget variance 10,650 U a. Total pounds of direct materials purchased. Variable manufacturing overhead efficiency variance 18,600 U Pounds of DM Fixed manufacturing overhead incurred 707,460 DM price variance (based on purchases) DM price variance (per pound) purchased O More Info - X 179,300 1.10 163,000 b. Total number of pounds of excess direct materials used. Pounds of excess At the 30,000 budgeted direct manufacturing labor-hour level for August, budgeted direct manufacturing labor is $750,000, budgeted variable manufacturing overhead is $300,000, and budgeted fixed manufacturing overhead is $750,000. direct materials used The standard cost per pound of direct materials is $11.50. The standard allowance is 6 pounds of direct materials for each unit of product. During August, 40,000 units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process. In August, the direct materials price variance was $1.10 per pound. In July, labor unrest caused a major slowdown in the pace of production, resulting in an unfavorable direct manufacturing labor efficiency variance of $327,500. There was no direct manufacturing labor price variance. Labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wage rates, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $0.50 per hour. Choose from any list or enter any number in the input fields and then click Check Answer. 11 Pomaining Clear All remaining

The Costa Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct-cost categories (direct materials and direct manufacturing labor-both variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual results are for August E (Click the icon to view the results.) Some additional information about Costa Company's budget, standard costs and labor follows: A (Click the icon to view additional information.) - X Data Table Read the requirements Direct materials price variance (based on purchases) $179,300 F Requirement 1. Compute the listed amounts for August. Direct materials efficiency variance $770,500 U Direct manufacturing labor costs incurred 624,750 Determine the formula, then complete the computation for each. (Abbreviations used: DM = Direct materials, mfg. = manufacturing, OH = Overhead.) Variable manufacturing overhead flexible-budget variance 10,650 U a. Total pounds of direct materials purchased. Variable manufacturing overhead efficiency variance 18,600 U Pounds of DM Fixed manufacturing overhead incurred 707,460 DM price variance (based on purchases) DM price variance (per pound) purchased O More Info - X 179,300 1.10 163,000 b. Total number of pounds of excess direct materials used. Pounds of excess At the 30,000 budgeted direct manufacturing labor-hour level for August, budgeted direct manufacturing labor is $750,000, budgeted variable manufacturing overhead is $300,000, and budgeted fixed manufacturing overhead is $750,000. direct materials used The standard cost per pound of direct materials is $11.50. The standard allowance is 6 pounds of direct materials for each unit of product. During August, 40,000 units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process. In August, the direct materials price variance was $1.10 per pound. In July, labor unrest caused a major slowdown in the pace of production, resulting in an unfavorable direct manufacturing labor efficiency variance of $327,500. There was no direct manufacturing labor price variance. Labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wage rates, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $0.50 per hour. Choose from any list or enter any number in the input fields and then click Check Answer. 11 Pomaining Clear All remaining

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Description: The Costa Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct-cost categories (direct materials and direct manufacturing labor-b

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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