The Outdoor Vest company has provided the following information about their product Budget or standard information Male Female Standard material used for each vest Liner 9.4 7.0 yards Filler 5.2 4.0 pounds Standard direct labor hours for each vest 0.4 hours 0.5 Estimated planned production 6,200 5,000 Units Standard labor rate $14.00 per hour Standard material cost Liner $8.00 рer yard Filler $2.00 per pound Actual information Male Female Actual units produced 5,800 4,400 Actual labor hours worked 2,800 1,825 Actual labor rate $14.50 $14.70 Actual material purchased and used Liner 85,100 yards Filler 48,000 pounds Actual material cost per item Liner $8.20 Per yard Filler $1.90 Per pound Required 1A Prepare the material purchase price variance 1B Based on your answer explain the impact on the product cost on the income

The Outdoor Vest company has provided the following information about their product Budget or standard information Male Female Standard material used for each vest Liner 9.4 7.0 yards Filler 5.2 4.0 pounds Standard direct labor hours for each vest 0.4 hours 0.5 Estimated planned production 6,200 5,000 Units Standard labor rate $14.00 per hour Standard material cost Liner $8.00 рer yard Filler $2.00 per pound Actual information Male Female Actual units produced 5,800 4,400 Actual labor hours worked 2,800 1,825 Actual labor rate $14.50 $14.70 Actual material purchased and used Liner 85,100 yards Filler 48,000 pounds Actual material cost per item Liner $8.20 Per yard Filler $1.90 Per pound Required 1A Prepare the material purchase price variance 1B Based on your answer explain the impact on the product cost on the income

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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Zeke's Bikes uses a standard cost system and provides the following information: Standards: Static budget variable overhead $5,040.00. Static budget fixed overhead $20,900.00. Static budget direct labor hours 400 hours. Static budget number of units 25,600 units. Static budget direct labor hours 0.035 hours per unit. Actual: Number of units produced 25,000. Actual variable overhead $5,220.00 Actual fixed overhead $23,600.00. Actual direct labor hours 520. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the variable and fixed overhead allocation rates.
Blue Pants & Co. manufactures slacks and jeans under a variety of brand names, such as Blue Easy and Tracy Jeans. Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Blue Easy and Tracy Jeans shows estimated sales of 33,960 and 65,540 pairs, respectively, for May. The finished goods inventory is assumed as follows: Blue Easy Tracy Jeans May 1 estimated inventory 1,520 1,850 May 31 desired inventory 560 2,310 Assume the following direct labor data per 10 pairs of Blue Easy and Tracy Jeans for four different sewing operations: Direct Labor per 10 Pairs Blue Easy Tracy Jeans Inseam 20 minutes 14 minutes Outerseam 24 17 Pockets 8 10 Zipper 11 Total 63 minutes 48 minutes a. Prepare a production budget for May. BLUE PANTS & CO. Production Budget May (Assumed Data) Blue Easy (Units) Tracy Jeans (Units) Expected units to be sold Plus May 31 desired inventory Total units Less May 1 estimated inventory Total units to be produced
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Maria Company uses both standards and budgets. For the year, estimated production of Product X is 597,000 units. Total estimated cost for materials and labor are $1,194,000 and $1,671,600respectively.Compute the estimates for (a) a standard cost and (b) a budgeted cost. (Round standard costs to 2 decimal places, e.g. 1.25.) Materials Labor (a) Standard cost $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places (b) Budgeted cost $enter a dollar amount $enter a dollar amount
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Crane, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Activity Cost Pools Sizing and cutting Stitching and trimming Wrapping and packing Sizing and cutting Stitching and trimming Estimated Overhead Wrapping and packing $4,108,500 1,439,100 $ Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 12.25.) $ LA 325,500 $ Estimated Use of Cost Drivers per Activity 166,000 machine hours 78,000 labor hours 35,000 finished units Activity-based overhead rates per machine hour per labor hour per finished unit
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Use this information for Stringer Company to answer the question that follow. The following data are given for Stringer Company: Budgeted production 930 units Actual production 1,013 units Materials: Standard price per ounce $1.85 Standard ounces per completed unit 10 Actual ounces purchased and used in production 10,434 Actual price paid for materials $21,390 Labor: Standard hourly labor rate $14.60 per hour Standard hours allowed per completed unit 4.7 Actual labor hours worked 5,216.95 Actual total labor costs $79,558 Overhead: Actual and budgeted fixed overhead $1,015,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $146,075 Overhead is applied on standard labor hours. Round your intermediate calculations and final answer to the nearest cent. The direct materials price variance is a.$5,217.00 favorable b.$2,086.80 favorable c.$2,086.80…
Use this information for Stringer Company to answer the question that follow. The following data are given for Stringer Company: Budgeted production 911 units Actual production 1,080 units Materials: Standard price per ounce $1.89 Standard ounces per completed unit 10 Actual ounces purchased and used in production 11,124 Actual price paid for materials $22,804 Labor: Standard hourly labor rate $14.32 per hour Standard hours allowed per completed unit 4.3 Actual labor hours worked 5,562 Actual total labor costs $84,821 Overhead: Actual and budgeted fixed overhead $1,082,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $155,736 Overhead is applied on standard labor hours. The direct materials quantity variance is a.$1,779.64 favorable b.$1,779.64 unfavorable c.$612.36 unfavorable d.$612.36 favorable
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