[The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured AQ-Actual Quantity SQ-Standard Quantity AP Actual Price SP- Standard Price Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ Standard 6 lbs. @ $8 per lb. 2 hrs. @ $17 per hr. 2 hrs. @ $12 per hr. Actual Cost X X $ 0 $ 0 Actual 51,000 lbs. @ $8.10 per lb. 16,500 hrs. @ $17.60 per hr. $208,600 8,400 0 $ 0 Standard Cost

[The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured AQ-Actual Quantity SQ-Standard Quantity AP Actual Price SP- Standard Price Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ Standard 6 lbs. @ $8 per lb. 2 hrs. @ $17 per hr. 2 hrs. @ $12 per hr. Actual Cost X X $ 0 $ 0 Actual 51,000 lbs. @ $8.10 per lb. 16,500 hrs. @ $17.60 per hr. $208,600 8,400 0 $ 0 Standard Cost

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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Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Direct materials Direct labor Total prime cost Standard Quantity 5 pounds 1.25 hours ● Variance Material Price X NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F" (for Favorable) or "U" (for Unfavorable) - capital letter and no quotes. Material Quantity Standard Price Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith Industries paid $39,370 for the 15,500 pounds of material. Complete the following table of variances and their conditions: Total DM Cost Variance $2.60 per pound $12.00 per hour Standard Cost $18.00 $15.00 $33.00 Variance Amount 10 Favorable (F) or Unfavorable (U)
The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor cost Direct labor efficiency variance Actual variable overhead Direct labor: Price variance Efficiency variance Required: Compute the direct labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead: 4 $ 24 Price variance Efficiency variance 3,400 13,175 $ 483,200 $ 15,810 F $ 316, 200
Upon your review of Shalom Company's standard cost card. You found the following information: Standards: Material Labor Actual: Production Material Labor 5.0 feet per unit @ P4.00 per foot 3.0 hours per unit @ 35.00 per hour 2,800 units produced during the month 14,500 feet used; 15,100 feet purchased @ P3.70 per foot 8,150 direct labor hours @ P36.00 per hour Determine the variances based on the information above. Indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. What is the material price variance?
A. Compute in details the Direct Materials Variances - Prices & Quantity. Show the solution for each. B. Compute in details the Direct Labour Variances - Rate & Efficiency. Show the solution for each. Direct materials: Direct labour: Variable mfg overhead: Fixed mfg overhead: During January, the company produced 6,000 Beadazzler toys. The fixed overhead expense budget for January was $48,360 with 8,060 direct labour-hours as the denominator level of activity. Production data for the month on the toys follow: Direct materials: Direct labour: 6 microns per toy @ $1.00 per micron 1.3 hours per toy @ $8 per hour 1.3 hours per toy @$4 per hour 1.3 hours per toy @ $6 per hour Variable manufacturing overhead: Fixed manufacturing overhead: 50000 microns were purchased and used in production at a cost of $0.96 per micron 8000 direct labour hours were worked at a cost of $72000 Actual cost in January was $34,000. Actual cost in January was $50,000.
The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. 17,000 pounds at $4.55 per pound 17,635 hours at $29 per hour 32,000 0.50 pound at $4.50 per pound 0.50 hour at $30 per hour
The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. 17,600 pounds at $4.85 per pound 18,235 hours at $35 per hour 33,200 0.50 pound at $4.80 per pound 0.50 hour at $36 per hour
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Myers Corporation has the following data related to direct materials costs for November: actual cost for 4,680 pounds of material at $5.00 and standard cost for 4,460 pounds of material at $6.20 per pound. The direct materials price variance is Oa. $1,364 unfavorable Ob. $1,364 favorable Oc. $5,616 unfavorable Od. $5,616 favorable
Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.90 Actual quantity purchased and used in production 110 Standard quantity for units produced 130 Actual labor rate per hour $14 Standard labor rate per hour $11 Actual hours 210 Standard hours for units produced 220 A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance $ Material quantity variance $ Labor rate variance 2$ Labor efficiency variance $ B. What are some possible causes for this combination of favorable and unfavorable variances?
Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor 1. Materials price variance 1. Materials quantity variance Standard Quantity or Hours 7.80 pounds 0.30 hours 2. Labor rate variance 2. Labor efficiency variance Standard Price or Rate $ 2.50 per pound $ 6.00 per hour Standard Cost During the most recent month, the following activity was recorded: a. 9,300.00 pounds of material were purchased at a cost of $2.20 per pound. b. All of the material purchased was used to produce 1,000 units of Zoom. c. 200 hours of direct labor time were recorded at a total labor cost of $1,400. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,…
Selena Company applies overhead based on direct labor hours and has the following available for November: Standard: Direct labor hours (DLH) per unit Variable overhead per DLH Fixed overhead per DLH (based on 8,900 DLH) Actual Units produced Direct labor hours Variable overhead Fixed overhead 1,800 8,900 $6,400 $17,500 5 $0.75 $1.90 3. Compute all appropriate variances using the three-variance approach. (with SOLUTION)