The following information relates to production activities of Mercer Manufacturing for the year.Actual direct materials usedActual direct labor used.16,400 pounds at $4.25 per pound17,035 hours at $23 per hour30,800Actual units producedStandard quantity and price per unit for direct materialsStandard quantity and rate per unit for direct labor0.50 pound at $4.20 per pound0.50 hour at $24 per hourAR = Actual RateSR Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate and efficiency variances.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or novariance.)Actual CostStandard Cost$ 0$0Required 2 >$00< Required 1 The following information relates to production activities of Mercer Manufacturing for the year.Actual direct materials usedActual direct labor used16,400 pounds at $4.25 per pound17,035 hours at $23 per hour30,800Actual units producedStandard quantity and price per unit for direct materialsStandard quantity and rate per unit for direct labor0.50 pound at $4.20 per pound0.50 hour at $24 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.Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the direct labor rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)Actual CostStandard CostX$0$0Required 2 >$00< Required 1

Name: The following information relates to production activities of Mercer
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Description: The following information relates to production activities of Mercer Manufacturing for the year.Actual direct materials usedActual direct labor used.16,400 pounds at $4.25 per pound17,035 hours at $23 per hour30,800Actual units producedStandard quan

Direct material price variance = actual quantity * actual price - actual quantity * standard price…

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The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used 16,400 pounds at $4.25 per pound 17,035 hours at $23 per hour 30,800 Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 0.50 pound at $4.20 per pound 0.50 hour at $24 per hour 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost $ 0 $ 0 $ 0

The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used 16,400 pounds at $4.25 per pound 17,035 hours at $23 per hour 30,800 Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 0.50 pound at $4.20 per pound 0.50 hour at $24 per hour 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost $ 0 $ 0 $ 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 11: Materials, Labor and Factory Overhead Variances Julie Corporation uses a standard cost system and has the following standard variable costs.
Weighted Average Method, Unit Cost, Valuing Inventories Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed 96,000 Units in EWIP X Fraction complete (36,000 X 60%) 21,600 Equivalent units of output 117,600 June's costs to account for are as follows: BWIP (10,000 units, 80% complete) $50,000 Materials 150,000 Conversion costs 44,000 Total $244,000 Required: 1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent.$ per unit 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round unit cost to the nearest cent in intermediate calculations and final answers to the nearest dollar. Cost of ending work in process $ Cost of the goods transferred out $ 3. Cassien had just finished implementing a series of measures designed…
The following standard costs per unit, of one product, have been taken from the records of Bahrain Company: Direct materials 4 kgs at $6 per kg Direct labor 2 hours at $20 per hour Actual data for last month: Units produced: 20,000 Direct labor hours: 44,000 Direct materials used: 70,000 kgs Direct labor rate per hour: $18 Direct material price: $8 per kg Direct materials purchased: 200,000 kgs Required: (a) Compute the price and efficiency variances for direct materials and direct labor. Direct material price variance to be calculated at the time of purchase. (b) Prepare the journal entries to record the price and efficiency variances for direct materials and direct labor.
Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Blackrock Steel Company is $625,500. The conversion cost for the period in the Rolling Department is $157,680. The total equivalent units for direct materials and conversion are 13,900 tons and 13,140 tons, respectively.Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit:Conversion costs per equivalent unit:per ton
Required Information During June, Danby Company's material purchases amounted to 6,600 pounds at a price of $7.90 per pound. Actual costs incurred in the production of 2,300 units were as follows: Direct labor: Direct material: $ 131,835 ($18.70 per hour) $ 37,920 ($7.90 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Quantity, 3 hours per unit Rate, $18.60 per hour Required: Fill in the amounts in the tables below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).). Round "Actual Price" and "Standard Price" to 2 decimal places. Actual Material Cost Actual Quantity pounds used x X Actual Price Direct Material: Quantity, 2 pounds per unit Price, $7.60 per pound per pound Direct-material price variance…
Required information [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 Standard Quantity and Cost 7 pounds @ $8 per pound 3 DLH @ $15 per DLH 3 DLH @$13 per DLH Actual Results 62,100 pounds @ $8.10 per pound 26,000 hours @ $15.50 per hour $ 349,600 8,800 units Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH=Standard Hours AR = Actual Rate SR Standard Rate Actual Cost $ 0 $ 00 0 0 $ 0 Standard Cost
Required information [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 Standard Quantity and Cost 7 pounds @ $8 per pound 3 DLH @ $16 per DLH 3 DLH @ $12 per DLH Actual Results 62,900 pounds @ $8.20 per pound 26,500 hours @ $16.50 per hour 8,900 units $ 325,700 Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) AH Actual Hours SH Standard Hours Standard Rate AR Actual Rate SR Actual Cost G < Prev 8 of 8 Next Standard Cost
Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Blackrock Steel Company is $625,500. The conversion cost for the period in the Rolling Department is $157,680. The total equivalent units for direct materials and conversion are 13,900 tons and 13,140 tons, respectively. Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit: Conversion costs per equivalent unit: per ton per ton
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 3.80 per hour $ 7.60 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. The actual variable overhead cost incurred during the period was $25,000. Assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead efficiency variance?
Q4. The following standards have been established for a raw material used to make the product: 4.5 pounds Standard quantity of the material per unit of output Standard price of the material The following data pertain to a recent month's operations: $13.90 per pound Actual material purchased Actual cost of material purchased Actual material used in production Actual output produced 2000 pounds $26200 1300 pounds 220 units 3.3 hours per unit $10.50 per hour 1100 hours Standard direct labor-hours Standard direct labor wage rate Actual direct labor-hours worked Actual direct labor wages paid $11385 a) What is the materials price variance for the month? b) What is the materials quantity variance for the month? c) What was the labor rate variance for the month? d) What was the labor efficiency variance for the month? e) Discuss the concept of 'Management by exception'.
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 labor rate variance for the year? What is the labor efficiency variance for the year?
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