Answer Viippro Systems is a start-up company that makes connectorsfor high-speed Internet connections. Viippro Systems hasbudgeted three hours of direct labor per connector, at astandard cost of $16 per hour. During August, techniciansactually worked 195 hours completing 71 connectors. All 71connectors actually produced were sold. Viippro paid thetechnicians $16.80 per hour. What is Viippro's direct laborcost variance for August?

Calculation of Standard CostA Connector requires 3 hours of Direct Labor.Budgeted Labor Hours for 1…

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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Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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?
Cozy, Inc., manufactures small and large blankets. It estimates $420,500 in overhead during the manufacturing of 87,000 small blankets and 29,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours? Predetermined overhead rate $ per machine hour
Erie Company 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 27 minutes Standard Rate per Hour $6.00 During August, 9,540 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $56,286 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,600 Jogging Mates? 3. What is the labor spending variance? Standard Cost $2.70 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $47,700 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate…
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Erie Company manufactures a mobile fitness device called a 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 Standard Rate Per Hour Standard Cost 18 minutes $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. Required: What is the standard labor-hours allowed (SH) to make 20,000 Jogging Mates? What is the standard labor cost allowed (SH x SR) to make 20,000 Jogging Mates? What is the labor spending variance? What is the labor rate variance and the labor efficiency variance? The budgeted variable manufacturing overhead rate is $4 per direct labor-hour. During August, the company incurred $21,850 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency…
XYZ Co.manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. The company uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $12,500 a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat? O a. $3 Ob. $3.5 Oc. None of the given answer is correct. O d. $3.46 O e. $2.96 The number of units sold every period is: Fi a. budgeted unit sales plus budgeted ending finished goods inventory, less budgeted beginning
Erie Company 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 Standard Rate per Hour Standard Cost 18 minutes $ 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. Please help with the following: A) What is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates? B) What is the standard labor cost allowed (SH × SR) to make 20,000 Jogging Mates? C) What is the labor spending variance? D) What is the labor rate variance and the labor efficiency variance? E) The budgeted variable manufacturing overhead rate is $4 per direct labor-hour. During August, the company incurred $21,850 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
Your Brother's Company manufactures lights. Each light uses $15 in direct materials and $5 in direct labor per unit. Way has two activities: Machining, which is applied at the rate of $3 per machine hour, and Finishing, which is applied at the rate of $16 per batch. This month, Way made 250 lights, using 1,500 machine hours in 47 batches. What is the total manufacturing cost for one light? O $21 O $36 $41 O $26
Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows: Standard Rate Standard per Hour $19.00 Standard Hours Cost 12 minutes (0.20 hours) $3.80 During July, 3,850 hours of direct labour time were recorded to make 18,000 units. The direct labour cost totalled $74,305 for the month.
Computer World, Inc. manufactures computer parts and keyboards. The annual production and sales of computer parts is 1,000 units, while 1,200 keyboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Computer parts require 3 direct labor hours per unit, while keyboards require 2.5 direct labor hours per unit. The total estimated overhead for the period is $114,000. The company is looking at the possibility of changing to an activity-based costing system for its products. What is the predetermined overhead allocation rate using the traditional costing system?
Neptune Accounting Services expects its accountants to work for 26,000 direct labor hours per year. The company's estimated total indirect costs are $227,000. The direct labor rate is $65 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Neptune performs a job requiring 40 hours of direct labor, what is the total job cost? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) A. $2,949 B. $227,000 C. $2,600 D. $349

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