Tom runs a gourmet ice cream shop solve this accounting questions Tom runs a gourmet ice cream shop. Each ice cream sundaerequires 3/4 pound of premium ice cream, which is expectedto cost $8 per pound. Employees are paid $9 per hour.Variable overhead (including refrigeration and supplies)has a rate of $0.15 per minute of direct labor time. Eachsundae requires 4 minutes of direct labor time.Calculate:1. Standard cost of direct materials per sundae2. Standard cost of direct labor per sundae3. Standard cost of variable overhead per sundae

Step 1: Definition of standard cost per sundaeThe standard cost per sundae is calculated based on…

Answered: Tom runs a gourmet ice cream shop. Each…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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Hilary owns a fruit smoothie shop at the local mall. Each smoothie requires 1/3 pound of mixed berries, which are expected to cost $7 per pound during the summer months. Shop employees are paid $8 per hour. Variable overhead consists of utilities and supplies. The variable overhead rate is $0.12 per minute of DL time. Each smoothie should require 4 minutes of DL time. 1. What is the standard cost of direct materials for each smoothie? 2. What is the standard cost of direct labor for each smoothie? 3. What is the standard cost of variable overhead for each smoothie?
Tokyo's Juice Bar operates a fresh juice stand at a local shopping center. Each juice requires 3/4 pound of mixed fruits, which are expected to cost $4 per pound during the summer months. Shop employees are paid $8 per hour. Variable overhead consists of utilities and supplies, and the variable overhead rate is $0.09 per minute of direct labor (DL) time. Each juice should require 4 minutes of direct labor time. 1. What is the standard cost of direct materials for each juice? 2. What is the standard cost of direct labor for each juice? 3. What is the standard cost of variable overhead for each juice?
Heidi owns a fruit smoothie shop at the local mall Each smoothie requires 3/4 pound of mixed bemes, which are expected to cost $8 per pound during the summer months Shop employees are paid 50 per hour Vanable overhead consists of utilities and supplies. The variable overhead rate is $0.03 per minute of DL time. Each smoothie should require 3 minutes (0.05 hours) of Dt. time 1. What is the standard cost of direct materials for each smoothie? 2. What is the standard cost of direct labor for each smoothie? 3. What is the standard cost of variable overhead for each smoothie? Compute the standard cost of each of the following inputs per smoothie (1) direct matorials, (2) direct labor, (3) variable overhead Begin by selecting the formula to calculate the standard cost of input, then enter the amounts and calculate the standard cost for each input (Round your answers to the nearest cont) Standard cost of input
Hilary owns a fruit smoothie shop at the local mall. Each smoothie requires 1/2 pound of mixed berries, which are expected to cost $5.50 per pound during the summer months. Shop employees are paid $7.00 per hour. Variable overhead consists of utilities and supplies, with a variable overhead rate of $0.12 per minute of direct labor time. Each smoothie should require 4 minutes of direct labor time. Determine the following standard costs per smoothie: Direct materials cost Direct labor cost Variable overhead cost
Summer company manufactures beach chairs. $ 4.00 of direct materials are needed for each chair. Labor is $ 15 an hour. The company manufactures 3 chairs per hour. Indirect costs are $ 9.00 per hour. Commissions to sellers are $ 2.00 per unit sold. The cost of a chair will be:
BatCo makes baseball bats. Each bat requires 1.00 pounds of wood at $18 per pound and 0.35 direct labor hour at $30 per hour. Overhead is assigned at the rate of $60 per direct labor hour.
BatCo makes metal baseball bats. Each bat requires 1 kg of aluminum at $18 per kg and 0.25 direct labor hours at $20 per hour. Overhead is assigned at the rate of $40 per direct labor hour. What amounts would appear on a standard cost card for BatCo?
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Batco makes baseball bats. Each bat requires 2.00 pounds of wood at $22 per pound and 0.40 direct labor hour at $20 per hour. Overhead is assigned at the rate of $40 per direct labor hour. Prepare a standard cost card for a baseball bat for BatCo. (Round your final answers to 2 decimal places.) O Answer is complete but not entirely correct. Standard Standard quantity or hours Standard Inputs cost per price or rate unit Direct materials 2.00 pounds 20.00 40.00 Direct labor 0.35 DLH 20.00 7.00 Overhead 0.35 DLH 40.00 14.00 Total 61.00 000 000
Oak Valley Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $8 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are $30 per hour. Payroll costs are $3.00 per hour, and benefits are $5 per hour. How much is the direct materials standard cost per square foot? A. $8.20 B. $11.20 C. $13.20 D. $8.00
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Becky's Bakery produces two products, cake and pie. Becky's Bakery sells each cake for $15.00 and each pie for $10.00. Variable costs for cakes and pies are respectively, $7.00 and $6.00. There are 3,200 direct labor hours per month available for producing one of the two products. Fixed manufacturing overhead cost is allocated at $1,000 per month. Each cake and pie require 2 direct labor hours. Compute the following: A. Contribution margin per unit for each product. B. Contribution margin per direct labor hour for each product. C. The total number of products produced if only that product is produced each month. D. Income for a month if only one product is produced and total production is sold.

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