Whispering Winds Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances: Materials price variance Materials quantity variance Labour price variance $1,410 U 850 F 400 U Labour quantity variance Overhead variance $800 U 770 U In addition, 7,100 units of product were sold at $8 per unit. Each unit sold had a standard cost of $5. Selling and administrative expenses were $7,300 for the month. Prepare an income statement for management for the month ended January 31, 2022.

Whispering Winds Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances: Materials price variance Materials quantity variance Labour price variance $1,410 U 850 F 400 U Labour quantity variance Overhead variance $800 U 770 U In addition, 7,100 units of product were sold at $8 per unit. Each unit sold had a standard cost of $5. Selling and administrative expenses were $7,300 for the month. Prepare an income statement for management for the month ended January 31, 2022.

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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The following data were taken from the records of Griggs Company for December: Cost Category Dollar Amount Administrative expenses $110,000 Cost of goods sold at standard 540,000 Direct materials price variance (unfavorable) 1,650 Direct materials quantity variance (favorable) (540) Direct labor rate variance (favorable) (1,120) Direct labor time variance (unfavorable) 420 Variable factory overhead controllable variance (favorable) (210) Fixed factory overhead volume variance (unfavorable) 3,080 Interest expense 2,070 Sales 869,000 Selling expenses 125,000 Prepare an income statement for presentation to management.
Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $15.10 per hour. During August, Delmar Incorporated paid its workers $260,832 for 17,160 hours. Delmar Incorporated produced 8,780 widgets during August. Required: Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Calculate the direct labor efficiency variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Calculate the direct labor spending variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).
Blue Devil Inc.’s direct labor cost information for April 2021 is as follows. Standard Costs: Units of Production 7,600 units Hours of Production 0.75 hour Wage Rate $13.60 per hour Actual Costs: Units of Production 7,600 units Total Hours of Production 5,900 hours Wage Rate $13.80 per hour Required: Prepare the journal entries to record standard costs, actual costs, and related variances for direct labor. (Hint: the related accounts include work-in-process, wages payable, rate variance, and efficiency variance)
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The following labor standards have been established for a particular product Standard labor hours per unit of output Standard labor rate 4.3 hours $ 20.10 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 6,900 hours $ 139,380 1,500 units Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance for the month? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le zero variance). Input all amounts as positive values. a. Labor rate variance. b. Labor efficiency variance
The following data were taken from the records of Griggs Company for December: Administrative expenses $100,800 Cost of goods sold (at standard) 550,000 Direct materials price variance—unfavorable 1,680 Direct materials quantity variance—favorable (560) Direct labor rate variance—favorable (1,120) Direct labor time variance—unfavorable 490 Variable factory overhead controllable variance—favorable (210) Fixed factory overhead volume variance—unfavorable 3,080 Interest expense 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry leave it blank. Griggs Company Income Statement For the Month Ended December 31 $ $ Unfavorable Favorable Variances from standard cost: $ $…
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A. Show the solution for each. Compute in details the Variable Manufacturing Overhead Variances - Spending and Efficiency. B. Show the solution for each. Compute in details the Fixed Manufacturing Overhead Variances - Budget and Volume.
The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output 4 Standard variable overhead rate per standard direct labor-hour $ 44 Good units produced 3,800 Actual direct labor-hours worked 14,675 Actual total direct labor cost $ 537,200 Direct labor efficiency variance $ 19,530 F Actual variable overhead $ 645,700 Required: Compute the direct labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance need help
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A company's product requires 3 direct labor hours per unit at a standard rate of $40 per direct labor hour. During the period, the company made 8,010 units, using 23,825 direct labor hours at an actual cost of $42 per direct labor hour, Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance. Indicate whether each variance is favorable or unfavorable. AH = Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost $ 0 $ 0 0 $ 0 Standard Cost
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