Unique Inc. produces brakes for the Jeep Car Company.At the beginning of the year, they had the following standard costs for one batch ofbrakes:Direct labour (1 hours @ $15.00 per hour)$15.00The actual results for the year are:Batches producedDirect labour hoursDirect labour cost per hour300,000295,000$15.25Required:Calculate the labour variances and use your solution to answer the followingquestions.NOTE: Please enter all variances as positive numbers.The amount of the direct labour rate variance, also called the direct labour pricevariance, is $Indicate if the direct labour rate variance is favourable (enter the letter F) orunfavourable (enter the letters UF).UFΑ

To get the Direct Labour Rate Variance, we will compute it using the formula as follows: Direct…

Answered: Unique Inc. produces brakes for the…

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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Waterway Nail Salon Limited is trying to determine the standard labour cost of a manicure. The following data has been collected after analyzing one month's work: actual time spent on a manicure 1 hour; hourly wage rate $12; payroll taxes 5% of wage rate; set-up and downtime 8% of actual labour time; cleanup and rest periods 17% of actual labour time. Your answer is correct. Determine the standard direct labour hours per manicure. (Round calculations and final answer to 2 decimal places, e.g. 15.25.) Standard direct labour hours per manicure (b) eTextbook and Media 1.25 hours Attempts: 1 of 2 used Determine the direct labour cost per direct labour hour. (Round calculations and final answer to 2 decimal places, e.g. 15.25.) Direct labour cost per direct labour hour eTextbook and Media Save for Later +A SUPPORT Attempts: 0 of 2 used Submit Answer
Acme Company uses a standard cost accounting system and applies variable manufacturing overhead at a standard rate of $4.80 per machine hour. During the current month, Acme produces 13,600 units of finished goods, the variable overhead spending variance is $16,200 unfavorable, and the variable overhead rate variance is $6,120 unfavorable. The standard machine hours per unit of finished goods is 2.5 hours. What is the actual number of machine hours worked during the month? 36,100 hours 35,275 hours 31,900 hours 32,725 hours
Spartax Corp manufactures cranes for commercial use. The company produces two models. Designed as regular and advanced. The company uses job-order cost accounting system with manufacturing overhead applied on the basis of direct-labor hours. The system has been in place with little change for 25 years. Product cost and annual sales are as follows: *The calculation of manufacturing overhead rate, based on budgeted direct labor hour of 34,000 hours, is as follows: Regular Model: Annual Sales = 20,000 unit Direct Material = $ 60 Direct Labor = $ 60 (1 hour at $ 60) Manufacturing Overhead* = $ 630 ( 1 hour at $ 630) Advanced Model: Annual Sales = 1,000 unit Direct Material = $ 150 Direct Labor = $ 120 ( 2 hour at $ 60) Manufacturing Overhead* = $ 1,260 ( 2 hour at $ 630) *The calculation of manufacturing overhead rate, based on budgeted direct labor hour of 34,000 hours, is as follows: Manufacturing Overhead budget: Depreciation, machinery = $ 8,880,000 Maintenance, machinery = $ 720,000…
Markus, Inc. produces a specialzed machine part used in forkts. For last year's operations, the following data were gathered: Units produced: 55,000 Direct labor Actual variable overhead: $135,000 Markus employs a standard costing system. During the year, a variable overhead rate of $5.00 was used. The labor standard requires 0.50 hours per unit produced. The variable overhnad snenten and efficency variances are, respectively 29,000 hours $9.00 O sa.000 u and 00u. O Nare of the O M00 U ard s0.000 S10,000 Fad s7500 u. Os0,000 Fand 7.00 Autry Company manufactures veterinary products. One joint process involves refining a chemical (dactylyte) into two chemicais - dac and tyl. One batch of 5,000 gallors of dactylyte can be converted to 2,000 galions of dac and 3,000 galons of tyl at a total joint processing cust of $12,000. At the spit-off point, dac can be sold for $ per galun and tyl can be sold for $4 per gallon. Autry has just leamed of a new process to covert dac into prodac. The new…
Oakwood Creations Company makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Berkley model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates: Worktype 1 Worktype 2 Worktype 3 0.16 hour @ $12.28 per hour 0.34 hour @ $10.93 per hour 0.63 hour @ $19.57 per hour Required: a. Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Complete this question by entering your answers in the tabs below. Required A Required B Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. Note: Do not round intermediate calculations. Round final answer to 2 decimal places. Direct labor cost
Customs makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $26,000 in overhead. Poly is estimated to have 750,000 setups and 140,000 inspections, while silk has 250,000 setups and 60,000 inspections. Complete the table below to determine how much overhead is applied to each product? PLEASE NOTE: All cost pool activity rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The cost pool activity rates will NOT include a label. The dollar amount is rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Activity Activity Rate for Poly Poly Applied OH Activity Rate for Silk Silk Applied OH Setup Inspection Total
Hamid Ltd produces two products – shoes and belts. At present the company uses absorption costing, based on a labour hours rate, to establish the production overhead costs. The budgeted information for Period 4 is shown below. Product Shoes Belts Production in units 6000 5000 Machine hours per unit 5 hrs 6 hours Labour Hour per unit 3 hours 7 hours The overhead and cost driver information for Period 4 is shown below. Activity Cost in (£) Product Inspection 46,200 Machine Set-up 21,000 Machine maintenance 20,800 Handling and Packaging 26,400 Additional information Product inspection – one in every ten products is inspected. Machine set-up – the company uses a single machine to produce both products. For period 4, 300 setups will be made that will be shared equally between both the products. Machine maintenance – this is based on a predetermined number of machine hours. Product handling and packaging – each product…
The company produced 4000 units in July. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. She responded with the following information. Variable Costs Total Costs Material Costs 36000 50000 Labor Costs 54000 70000 Production Facilities cost 10000 16000 On the basis of above information, what is the estimated cost for 4350 units from the following? Select one: O a. 148500 O b. 144750 O c. 162000 O d. 149750
ABC Ltd manufactures two products: Basic and Deluxe. The company expects to produce andsell 1,100 units of Basic and 1,600 units of Deluxe during the current year.Currently in the traditional costing system, the company has been using direct labour hours asthe single cost driver for allocation of manufacturing overheads to products. The budgetedmanufacturing overheads for the next period are $35,000.The company is considering to implement the activity-based costing (ABC) system. Theaccountant has analysed the budgeted production overheads and identified various costs inactivity centres with appropriate cost drivers:Activity Centre Costs Cost DriverMaintenance costs $7,000 Direct labour hoursSet up costs $12,000 Number of production runQuality inspections $7,020 Number of inspectionsStores receiving $3,480 Number of component deliveriesStores issues $5,500 Number of issues$35,000The analysis also revealed the following information:Basic DeluxeDirect materials cost per unitDirect labour…
Maxwell Company makes treadmills. The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory using the regression method. Data for the past four months were collected. Month Janitorial costs Machine hours September $11,000 575 October 11,400 610 November 10,200 510 December 10,725 550 What would Maxwell Company's estimate of total janitorial cost be at a level of 600 machine hours? Round the variable rate and fixed cost to the nearest cent.
Hernandez Corp. wants to compute its throughput for August. The following production data are available: Good units produced and sold 2,923,200 Total units produced 4,844,000 Total processing (in hours) 201,600 Value-added time (in hours) 50,300 a. Determine the manufacturing cycle efficiency. ______% b. Determine the process productivity. ______ units per hour c. Determine the process quality yield. ______% d. Determine the throughput using only good units and total time. ______ units per hour
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