The following data are given for Stringer Company: Budgeted production 930 units Actual production 1,042 units Materials: Standard price per ounce $1.94 Standard ounces per completed unit 12 Actual ounces purchased and used in production 12,879 Actual price paid for materials $26,402 Labor: Standard hourly labor rate $14.40 per hour Standard hours allowed per completed unit 4.4 Actual labor hours worked 5,366.3 Actual total labor costs $81,836 Overhead: Actual and budgeted fixed overhead $1,110,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $150,256 Overhead is applied on standard labor hours. The direct materials quantity variance is O a. 1,416.74 favorable Ob. 1,416.74 unfavorable Oc. 727.50 unfavorable Od. 727.50 favorable

The following data are given for Stringer Company: Budgeted production 930 units Actual production 1,042 units Materials: Standard price per ounce $1.94 Standard ounces per completed unit 12 Actual ounces purchased and used in production 12,879 Actual price paid for materials $26,402 Labor: Standard hourly labor rate $14.40 per hour Standard hours allowed per completed unit 4.4 Actual labor hours worked 5,366.3 Actual total labor costs $81,836 Overhead: Actual and budgeted fixed overhead $1,110,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $150,256 Overhead is applied on standard labor hours. The direct materials quantity variance is O a. 1,416.74 favorable Ob. 1,416.74 unfavorable Oc. 727.50 unfavorable Od. 727.50 favorable

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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Use this information for Harry Company to answer the question that follow.The following data are given for Harry Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22.00 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)The direct labor rate variance is a.$5,490 favorable b.$5,490 unfavorable c.$33,000 unfavorable d.$33,000 favorable
Information concerning Johnston Company's direct materials costs is as follows: Standard price per pound $ 8.05 Actual quantity purchased 3,450 pounds Actual quantity used in production 3,350 pounds Units of product manufactured 860 Materials purchase-price variance–favorable $ 1,015 Budget data for the period: Units to manufacture 1,160 Units of direct materials 4,640 pounds The actual purchase price per pound of direct materials was: $7.72. $8.34. $8.72. $8.09. $7.76.
Anthon Corporation has provided the following information regarding last month's activities. Units produced (actual) Master production budget Direct materials Direct labor Overhead Standard costs per unit Direct materials Direct labor Variable overhead Actual costs Direct materials purchased and used Direct labor Overhead 10,500 $ 237,600 201,600 267,000 $ 3.96 per liter x 5 liters per unit of output $ 33.60 per hour x 0.5 hour per unit $ 28.50 per direct labor-hour $ 207,480 (53,200 liters) 176,472 (5,160 hours) 272,000 (58% is variable) Variable overhead is applied on the basis of direct labor-hours Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variance- Note: Do not round intermediate calculations. Indicate the effect of each veriance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Baxter Company sold 8,600 units at $150 per unit. Normal production is 9,000 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.75 hours per unit at $15.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $198,000 (budgeted and actual amount) Actual yards used: 43,240 yards hours at $6.25 per yard Actual hours worked: 23,400 hours at $14.90 per hour Actual total factory overhead: $237,500 Prepare an income statement that includes variances for the year ending December 31-through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance. Baxter Company Income Statement Through Gross Profit For the Year Ending December 31 Line Item Description Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Direct materials quantity Direct labor rate…
The standard cost sheet for a product is shown. Standard Cost Manufacturing Costs Standard price Standard Quantity per unit Direct materials $4.50 per pound 5.70 pounds $ 25.65 Direct labor $11.87 per hour 2.00 hours $ 23.74 Overhead $2.20 per hour 2.00 hours $ 4.40 $ 53.79 The company produced 3,000 units that required: 17,600 pounds of material purchased at $4.35 per pound • 5,910 hours of labor at an hourly rate of $12.17 per hour • Actual overhead in the period was $13,540 Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the ne Budget Performance Report Variance Manufacturing Costs: Actual Standard (Favorable)/ 3,000 units Costs Costs Unfavorable Direct materials $76,560 Direct labor 71,220 Overhead 13,540 $655
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The following data are given for Zoyza Company: Budgeted production (at 100% of normal capacity) 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22.00 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. The fixed factory overhead volume variance is a.$73,250 unfavorable b.$73,250 favorable c.$59,400 favorable d.$59,400 unfavorable
Belinda Company has the following budgeted variable costs per unit produced: Direct materials $ 7.50 Direct labour 2.24 Variable overhead: Supplies 0.33 Maintenance 0.17 Power 0.18 Budgeted fixed overhead costs per month include supervision of $68,000, depreciation of $71,000, and other overhead of $205,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 120,000 units, 130,000 units, and 145,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.)
Baxter Company sold 9,000 units at $125 per unit. Normal production is 9,400 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.75 hours per unit at $16.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $206,800 (budgeted and actual amount) Actual yards used: 45,760 yards hours at $6.25 per yard Actual hours worked: 24,500 hours at $15.90 per hour Actual total factory overhead: $236,500 Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance. Baxter Company Income Statement Through Gross Profit For the Year Ending December 31 Line Item Description Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Direct materials quantity Direct labor rate…
Miguez Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 2.3 liters $ 7.00 per liter $ 16.10 Direct labor 0.7 hours $ 22.00 per hour $ 15.40 Variable overhead 0.7 hours $ 2.00 per hour $ 1.40 The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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. The labor rate variance for September is: Multiple Choice $3,675 F $3,528 U $3,528 F $3,675 U
Stafford Company prepared a static budget for a production and sales volume of 11,200 units. Per unit Static standards Budget Number of units 11,200 Sales revenue $77.00 $862,400 Variable manufacturing costs: Materials $18.00 201,600 Labor $14.00 156,800 Overhead $ 5.40 60,480 Variable general, selling, and administrative costs Contribution margin $18.00 201,600 $241,920 Fixed costs Manufacturing overhead 112,800 General, selling, and administrative costs 57,000 Net income $ 72,120 What is the net income if 10,200 units are sold? Multiple Choice $71,995 $72,478 $64,268 $50,520
The following data are given for Stringer Company: Line Item Description Value Budgeted production 940 units Actual production 1,045 units Materials: Standard price per ounce $1.78 Standard ounces per completed unit 11 Actual ounces purchased and used in production 11,840 Actual price paid for materials $24,272 Labor: Standard hourly labor rate $14.00 per hour Standard hours allowed per completed unit 4.4 Actual labor hours worked 5,381.75 Actual total labor costs $82,072 Overhead: Actual and budgeted fixed overhead $1,099,000 Standard variable overhead rate $24.00 per standard labor hour Actual variable overhead costs $150,689 Overhead is applied on standard labor hours. The direct materials quantity variance is a. 3,196.80 favorable b. 3,196.80 unfavorable c. 614.10 unfavorable d. 614.10 favorable