Ans Viippro Systems is a start-up company that makes connectors forhigh-speed Internet connections. Viippro Systems has budgeted threehours of direct labor per connector, at a standard cost of $16 perhour. During August, technicians actually worked 195 hourscompleting 71 connectors. All 71 connectors actually produced weresold. Viippro paid the technicians $16.80 per hour. What is Viippro'sdirect labor cost variance for August?

Concept of Direct Labor Cost Variance: This measures the difference between the actual cost of labor…

Answered: Viippro Systems is a start-up company…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 4EB: Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the...

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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Salley is developing material and labor standards for her company. She finds that it costs $0.55 per pound of material per widget. Each widget requires 6 pounds of material per widget. Salley is also working with the operations manager to determine what the standard labor cost is for a widget. Upon observation, Salley notes that it takes 3 hours in the assembly department and 1 hour in the finishing department to complete one widget. All employees are paid $10.50 per hour. A. What is the standard materials cost per unit for a widget? 8. What is the standard labor cost per unit for a widget?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?
Stanley Woodworks manufactures wooden cabinets and can either make or buy a specific cabinet door component. The cost to manufacture the component is $12 for direct materials, $9 for direct labor, and $11 for variable overhead. Additionally, a supervisor is required to oversee production of the component at an annual salary cost of $60,000. If Stanley Woodworks requires 120,000 components per year, the maximum purchase price per unit they should consider paying is $__.
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Erie Co. manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows. Standard Hours 18 minutes Standard Rate per Hour Standard Cost $ 17.00 $5.10 During August, 5,750 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $102,350 for the month. What is the standard labor cost allowed to make 20,000 Jogging Mates?
Terra Nova, Inc. has the capacity to rewire 300 vehicle wiring harnesses per day. The expected number of vehicles needing to be rewired per day is 225. The company is paid $26 for each wiring harness rewired. The fixed cost of renting the rewiring equipment is $250 per day. The vehicle bays space rents for $150 per day. The cost of materials is $18 per vehicle and labor costs $3 per wiring harness. What is the break-even number of wiring harnesses rewired per day?
Stanley Woodworks manufactures wooden cabinets and can either make or buy a specific cabinet door component. The cost to manufacture the component is $12 for direct materials, $9 for direct labor, and $11 for variable overhead. Additionally, a supervisor is required to oversee production of the component at an annual salary cost of $60,000. If Stanley Woodworks requires 120,000 components per year, the maximum purchase price per unit they should consider paying is $__. Answer this

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