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Tip Top Corp. produces a product that requires nine standard gallons per unit. The standard price is $8.5 per gallon. If 4,600 units required 42,200 gallons, which were purchased at $8.07 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 55,000 actual direct labor hours and incurred $520,000 of actual manufacturing overhead costs. The Corporation had estimated that it would work 52,000 direct labor hours during the year and incur $468,000 of manufacturing overhead costs. The Corporation's manufacturing overhead cost for the year was: a. overapplied by $25,000. b. underapplied by $27,000. c. overapplied by $27,000. d. underapplied by $25,000. Osprey Production uses job-order costing for batches of customer-printed T-shirts. For job R45, the company incurred the following costs: Direct materials used $4,235 Direct labor $1,300 Applied overhead $450 Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. If Job R45 consisted of 570 shirts, how much is the cost per shirt for this job?

Tip Top Corp. produces a product that requires nine standard gallons per unit. The standard price is $8.5 per gallon. If 4,600 units required 42,200 gallons, which were purchased at $8.07 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 55,000 actual direct labor hours and incurred $520,000 of actual manufacturing overhead costs. The Corporation had estimated that it would work 52,000 direct labor hours during the year and incur $468,000 of manufacturing overhead costs. The Corporation's manufacturing overhead cost for the year was: a. overapplied by $25,000. b. underapplied by $27,000. c. overapplied by $27,000. d. underapplied by $25,000. Osprey Production uses job-order costing for batches of customer-printed T-shirts. For job R45, the company incurred the following costs: Direct materials used $4,235 Direct labor $1,300 Applied overhead $450 Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. If Job R45 consisted of 570 shirts, how much is the cost per shirt for this job?

FINANCIAL ACCOUNTING
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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Tip Top Corp. produces a product that requires nine standard gallons per unit. The standard price is $8.5 per gallon. If 4,600 units required 42,200 gallons, which were purchased at $8.07 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 55,000 actual direct labor hours and incurred $520,000 of actual manufacturing overhead costs. The Corporation had estimated that it would work 52,000 direct labor hours during the year and incur $468,000 of manufacturing overhead costs. The Corporation's manufacturing overhead cost for the year was: a. overapplied by $25,000. b. underapplied by $27,000. c. overapplied by $27,000. d. underapplied by $25,000. Osprey Production uses job-order costing for batches of customer-printed T-shirts. For job R45, the company incurred the following costs: Direct materials used $4,235 Direct labor $1,300 Applied overhead $450 Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. If Job R45 consisted of 570 shirts, how much is the cost per shirt for this job?
Transcribed Image Text:Tip Top Corp. produces a product that requires nine standard gallons per unit. The standard price is $8.5 per gallon. If 4,600 units required 42,200 gallons, which were purchased at $8.07 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 55,000 actual direct labor hours and incurred $520,000 of actual manufacturing overhead costs. The Corporation had estimated that it would work 52,000 direct labor hours during the year and incur $468,000 of manufacturing overhead costs. The Corporation's manufacturing overhead cost for the year was: a. overapplied by $25,000. b. underapplied by $27,000. c. overapplied by $27,000. d. underapplied by $25,000. Osprey Production uses job-order costing for batches of customer-printed T-shirts. For job R45, the company incurred the following costs: Direct materials used $4,235 Direct labor $1,300 Applied overhead $450 Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. If Job R45 consisted of 570 shirts, how much is the cost per shirt for this job?
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