The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. Standard Total Unit Actual Costs Costs Direct Material: Standard (2 lb. @$10/lb.) Actual (2,200 lb. @ $9.80/lb.) Direct Labor: Standard (2 hr. @ $20/hr.) Actual (2,400 hrs. @ $20.20/hr.) Variable Overhead: Standard (0.5 hr. @ $4/hr.) Actual Total What is the labor rate variance? Select one: O a. 400 U O b. O O O $400 F C. $480 U d. $480 F e. None of the above $20 $40 $2 $21,560 $48,480 $8,700 $62 $78,740

The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. Standard Total Unit Actual Costs Costs Direct Material: Standard (2 lb. @$10/lb.) Actual (2,200 lb. @ $9.80/lb.) Direct Labor: Standard (2 hr. @ $20/hr.) Actual (2,400 hrs. @ $20.20/hr.) Variable Overhead: Standard (0.5 hr. @ $4/hr.) Actual Total What is the labor rate variance? Select one: O a. 400 U O b. O O O $400 F C. $480 U d. $480 F e. None of the above $20 $40 $2 $21,560 $48,480 $8,700 $62 $78,740

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

Fordham Corporation produces a single product. The standard costs for one unit of its Concourse product are as follows:
Garrison Manufacturing has the following standard cost sheet for one of its products: direct materials (5m @ $6) $30 Direct labour (1.5 hours @$ 10) 15 variable overhead ( 1 hour @ $7) 7 Fixed overhead (2 hours @ $3) 6 Standard unit cost $58 *Rate based on expected activity of 12,000 hours. During the most recent year, the following actual results were recorded: production 13,000 units fixed overhead $36,000 Variable overhead $60,000 Direct materials (62,500m purchased) $382,500 direct labour (15,900 hours)…
Pattison Products, Inc., began operations in October and manufactured 40,000 units during themonth with the following unit costs: Direct materials $5.00Direct labor 3.00Variable overhead 1.50Fixed overhead* 7.00Variable marketing cost 1.20*Fixed overhead per unit 5 $280,000/40,000 units produced 5 $7. Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at aprice of $24, and fixed marketing and administrative expenses were $130,500.Required:1. Calculate the cost of each unit using absorption costing.2. How many units remain in ending inventory? What is the cost of ending inventory usingabsorption costing?3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the monthof October.4. What if November production was 40,000 units, costs were stable, and sales were 41,000units? What is the cost of ending inventory? What is operating income for November?
The following are standard costs related to a product of Jacobs, SRL: Inputs: Unit of Input Units per item Price or rate Direct Materials: square feet 80 $22/square foot Direct Labor: direct labor hours 24 $38/direct labor hour Variable Overhead: direct labor hours $49/direct labor hour The company applies variable overhead on the basis of direct labor hours. In April, the following results were reported: Actual output: 506 items Raw Materials used: 45,684 square feet Raw Material purchased: 42,335 square feet Actual direct labor hours: 14,168 hours Actual cost of raw materials purchased: $973,705 Actual direct labor cost: $609,224 Actual variable overhead cost: $665,896 The direct material purchases variance is computed when the materials are purchased. Determine each of the following variances and whether they are favorable or unfavorable: Part 1: Direct Material quantity variance: 114,488 Unfavorable 114,488 Favorable 83,145 Favorable 83, 145…
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $3 per pound) Direct labor (2 hours @ $14 per hour) $ 42 28 During May the company incurred the following actual costs to produce 8.100 units. Direct materials (115,780 pounds @ $2.80 per pound) Direct labor (19,700 hours @ $14.10 per hour) $ 323,968 277,770 AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ AP Standard Quantity Actual Price SP=Standard Price AH = Actual Hours SH Standard Hours (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
The Boxwood Machining Co. has the following information for last year: Tons of metal input 30,500 Labor hours 3,214 Overhead costs $ 127,500 Tons of output produced 22,500 The partial productivity for labor is:
The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used 17,300 pounds at $4.70 per pound Actual direct labor used 17,935 hours at $32 per hour Actual units produced 32,600 Standard quantity and price per unit for direct materials 0.50 pound at $4.65 per pound Standard quantity and rate per unit for direct labor 0.50 hour at $33 per hour AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price (1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate and efficiency variances.
QUESTION: AT THE BEGINNING OF THE YEAR, RANGLE COMPANY EXPECTED TO INCUR $54,000 OF OVERHEAD COSTS IN PRODUCING 6,000 UNITS OF PRODUCT. THE DIRECT MATERIAL COST IS $20 PER UNIT OF PRODUCT. DIRECT LABOR COST IS $30 PER UNIT. DURING JANUARY, 600 UNITS WERE PRODUCED. REQUIRED: THE TOTAL COST OF THE UNITS MADE IN JANUARY WAS:
Kubin Company’s relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1] Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 21,500 units? b. What is the total indirect manufacturing cost incurred to make 21,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 21,500 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be…
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: Standard hours at 100% of normal capacity 30,000 Standard hours for actual production 25,000 Standard total FOH cost (25,000 hours $10 per hour) $250,000 Actual Variable FOH costs $202,500 Actual Fixed FOH costs $60,000 Required: Calculate Variable FOH Controllable variance. Calculate Fixed FOH Volume variance. Calculate the total FOH variance.
Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the year: Purchases of raw materials (15,000 yards at $13): $ 195,000 Raw material used in production: 12,000 yards Direct labor costs (10,200 hours at $10): $ 102,000 Units produced: 12,600 Standards per unit of product: Raw materials: 1.1 yards at $15 per yard Direct labor: 8 hours at $9.50 per hour What is the materials price variance for the year? What is the materials quantity variance for the year?
Sandhill Building Supplies' total materials costs are $37,200 and total conversion costs are $39,000. Equivalent units of production for materials are 12,000, and 6,000 for conversion costs. Compute the unit costs for materials, conversion costs, and total manufacturing costs for the month. (Round answers to 2 decimal places, e.g. 15.25.) Unit costs Materials $ Conversion Costs $ Total