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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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