The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,000 output units per year, included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $245,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours were 28,400. Q.Prepare journal entries using the 4-variance analysis.

Q: The Parts Division of Mally Company makes Part XYZ, which it sells to outside companies for $26 per…

A: Transfer price is the price used in between the various divisions in an organization.

Q: XYZ Co. produces two different products (Product Y and Product Z) using two different activities:…

A: Overhead means the cost indirectly incured for manufacturing the product.

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: The variable cost per unit remains constant at every level of production and total fixed costs…

Q: Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160,…

A: Lets understand the basics. Traceable overhead is a overhead which can be traced on the product. In…

Q: The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing…

A: a. Describe whether variable costing or absorption costing is more likely to lead to such buildups:…

Q: Snyder Company produced 90,000 units during its first year of operations and sold 86,100 at $19.92…

A: Absorption costing allocates fixed overhead costs across all units produced for the period. Variable…

Q: Supler Corporation produces a part used in the manufacture of one of its products. The unit product…

A: Above questions is of make or buy nature. Financial advantage (disadvantage) = Cost of manufacturing…

Q: Haley Fans manufactures and distributes circulators. The standard and actual costs for the…

A: CONTROLLABLE OVERHEAD VARIANCE  Controllable Overhead Variance is the difference between the…

Q: Larned Company makes a storage box using metal. The company uses a standard costing system. Variable…

A: The discrepancy between an item's actual unit usage and its anticipated amount is known as the…

Q: Liu Incorporated is considering whether to continue to make a component or to buy it from an outside…

A: Lets understand the basics.Management needs to make decision between the make or buy decision…

Q: The actual machine hours during the year are 5,500 and the actual direct labor hours are

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Supler Corporation produces a part used in the manufacture of one of its products. The unit product…

A: Financial Advantage :— If benefits from the alternative plan is more than the current plan then…

Q: One company manufactures one of the products, and the unit cost is as follows: 18 dinars, direct…

A: A variable costing income statement is one in which all variable expenses are deducted from revenue…

Q: Cool Pool has these costs associated with production of 24,000 units of accessory products: direct…

A: Under the variable costing method, only variable costs are considered to be cost of production.…

Q: he fixed overhead is an allocated expense; none of it would be eliminated if production of Component…

A: Between choosing alternative the company should be consider by taking following option. 1. cost…

Q: Hollywood Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour.…

A: The overhead is applied to the production on the basis of predetermined overhead rate.

Q: Sent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A…

A: Differential cost or extra cost are terms used to describe the price distinction between two…

Q: Supler Corporation produces a part used in the manufacture of one of its products. The unit product…

A: Relevant unit product costs = Direct material + direct labor + variable manufacturing overhead +…

Q: artinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: calculation of total amounts of direct and indirect manufacturing costs incurred are as follows

Q: The Park Avenue Corporation currently makes a part required in its finished product.  The company…

A: Manufacturing Cost: Manufacturing costs are the cost which is incurred for producing or…

Q: Connected Technologies, Inc. has been purchasing carrying cases for its portable tablets at a…

A: A differential analysis, also known as a cost-benefit analysis, is a decision-making tool that…

Q: Han Products manufactures 35,000 units of part S-6 each year for use on its production line. At this…

A: The differential analysis is performed to compare the different alternatives available with the…

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: The variable cost per unit remains constant at every level of production.

Q: Martinez Company's relevant range of production is 7,500 units to 12, 500 units. When it produces…

A: The objective of the question is to calculate the total product cost incurred by Martinez Company to…

Q: Waterway Engine Incorporated produces engines for the watercraft industry. An outside manufacturer…

A: The relevant cost is the cost which is considered important for decision-making. The irrelevant…

Q: XYZ Co. produces two different products (Product Y and Product Z) using two different activities:…

A: Given information   cost of machining = $500,000 Product Y uses 20% of total machine hours Under…

Q: Waterway Co. computed an activity-based overhead rate for machining costs ($600000) of $5 per…

A: Under Activity Based Costing, costs are allocated to products based on activity consumed by them in…

Q: 0 units. The company has traditionally used direct labor-hours as the basis for applying all…

A: Activity based costing is the costing in which overheads cost are allocated to a product based on…

Q: st nas offered to provide th ead cost above couldb

A: financial advantage: $4 per unit on average Explanation: total production cost $22 Direct…

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: Manufacturing cost means the cost incurred to produce the finished goods in factory. Fixed…

Q: The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost…

A: Variance:   Variance refers to the difference level in the actual cost incurred and standard cost.…

Q: Waterway Engine Incorporated produces engines for the watercraft industry. An outside manufacturer…

A: Relevant cost:The costs or expenses that will be affected by certain management decision is known as…

Q: Martinez Company's relevant range of production is 15,000 units to 25,000 units. When it produces…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Q: ompany manufactures two products called Alpha and Beta that sell for $185 and $120, respectively.…

A: Solution:   Alpha Beta Sales Price 185 120 Variable costs:     Direct materials 30 10…

Q: labor-hours. ompany's total manufacturing overhead for the year is expected to be $ Tred: ne company…

A: 1. Computation of Budgeted Total direct Labor Hours: Particulars Product H Product L Budgeted…

Q: Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115,…

A: Contribution margin takes into consideration only variable expenses. Material cost is the total cost…

Q: artinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: The question is based on the concept of Cost Accounting. Fixed cost is the cost that remains the…

Q: The Park Avenue Corporation currently makes a part required in its finished product.  The company…

A: Total savings = Total cost of manufacture - Total cost of purchase

Q: Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130,…

A: Variable cost and fixed costVariable cost means the cost which varies with the level of output and…

Q: Acton Company has two products: A and B. The annual production and sales of Product A is 800 units…

A: Activity Based Costing Refers To The Allocation Of Costs To Different Heads Or Activities.Activity…

Q: [The following information applies to the questions displayed below.] Patel and Sons Incorporated…

A: The distinction between applied overhead and actual overhead is referred to as overhead variance.…

Q: Solomons, Inc. makes widgets in two models: basic and elite. Solomons, Inc. estimated $865,000 of…

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: ensen Corporation produces a part for use in the production of one of its products. The per-unit…

A: The variable cost per unit remains constant at every level of production. The fixed costs in total…

Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…

A: The term variance defines the difference of actual costs and standard costs of the production. The…

Q: Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160,…

A: Special Order Decisions are when management has to take a decision about some unusual customer…