The same information below will be repeated for the next three questions. Freezit manufactures fridges. The budgeted number of units to be produced for the month of June is 3,800. Direct material price per kg ($ per kg): Direct material quantity per unit of product (kg): Direct labour rate ($ per hr): 5.50 25.00 22.00 The actual production for the month of June amounted to 4,000 units, and the actual data recorded for the month are as follows: Direct material price per kg ($ per kg): Direct material purchased (kg): Direct material quantity used (kg) Direct labour rate ($ per hr): Direct labour hours per unit of product (hr): 6.80 32,000 55,000 24.00 26.00 The direct material price variance is: Select one: O a. $71,500 Unfavourable Ob. $41,600 Unfavourable O c. $130,000 Unfavourable O d. $123,500 Unfavourable O e. $5,200 Unfavourable

The same information below will be repeated for the next three questions. Freezit manufactures fridges. The budgeted number of units to be produced for the month of June is 3,800. Direct material price per kg ($ per kg): Direct material quantity per unit of product (kg): Direct labour rate ($ per hr): 5.50 25.00 22.00 The actual production for the month of June amounted to 4,000 units, and the actual data recorded for the month are as follows: Direct material price per kg ($ per kg): Direct material purchased (kg): Direct material quantity used (kg) Direct labour rate ($ per hr): Direct labour hours per unit of product (hr): 6.80 32,000 55,000 24.00 26.00 The direct material price variance is: Select one: O a. $71,500 Unfavourable Ob. $41,600 Unfavourable O c. $130,000 Unfavourable O d. $123,500 Unfavourable O e. $5,200 Unfavourable

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Description: The same information below will be repeated for the next three questions.Freezit manufactures fridges.The budgeted number of units to be produced for the month of June is 3,800.Direct material price per kg ($ per kg):Direct material quantity per uni

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

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Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
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Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid $32 per hour for labor, for a total of $718,848. The standard hours per unit are 6.4, and the standard labor wage rate is $38.40 per hour. A. What are the actual hours worked? B. What are the standard hours for the units made? C. What is the direct labor rate variance for April? D. What Is the direct labor time variance for April? E. What is the total direct labor variance for April?
Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.