Prepare standard cost card for each product with direct material and direct labor. Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

Question

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 10.10P

1

To determine

Prepare standard cost card for each product with direct material and direct labor.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

1

Expert Solution

Answer to Problem 10.10P

Standard cost of A6 is $28.42 and Z7 is $41.01

Explanation of Solution

Standard cost of A6

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×1.8)+(1.4×2)+(19.8×0.2)+(19.2×0.8)Standard cost =$28.42

Standard cost of Z7

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×3)+(1.4×4.5)+(19.8×0.35)+(19.2×0.9)Standard cost =$41.01

2

To determine

Compute material price variance and material quantity variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

2

Expert Solution

Answer to Problem 10.10P

The material price variance of X442 is $1,450 and Y661 is $775 and material quantity variance X442 is $700 and Y661 is $1,400.

Explanation of Solution

Material price variance of X442

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(14,500×( 52,200 14,500 −3.5))Material price variance =14,500×(3.6−3.5)Material price variance =$1,450

Material price variance of Y661

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(15,500×( 1.4− 20,925 15,500 ))Material price variance =14,500×(1.4−1.35)Material price variance =$775

Material quantity variance X442

Material quantity variance = ( Actual material cost per unit× ( Material used in A6+ Material used in Z7 ) − Material used)Material quantity variance =3.5×((2,700+6,000)-8,500)Material quantity variance =$700

Material quantity variance Y661

Material quantity variance = ( Actual material cost per unit× ( Material used−( Material used in A6+ Material used in Z7 ) ))Material quantity variance =1.4×(13,000−(3,000+9,000))Material quantity variance =$1,400

3

To determine

Compute labor rate variance and labor efficiency variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

3

Expert Solution

Answer to Problem 10.10P

The labor rate variance of sintering is $3,240 and finishing is $5,130 and labor efficiency variance of sintering is $3,960 and finishing is $3,960.

Explanation of Solution

Labor rate variance for sinteringLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =1,200×( 27,000 1,200−19.8)Labor rate variance =$3,240

Labor efficiency variance for sintering Labor efficiency variance = ( Actual labor cost per unit× ( Used labor hour -( Labor hour used in A6 +Labor hour used in Z7 ) ))Labor efficiency variance =19.8×(1,200−(300+700))Labor efficiency variance =$3,960

Labor rate variance for FinishingLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =2,850×( 59,850 2,850−19.2)Labor rate variance =$5,130

Labor efficiency variance for FinishingLabor efficiency variance = ( Actual labor cost per unit× ( ( Labor hour used in A6 +Labor hour used in Z7 )−Used labor hour ))Labor efficiency variance =19.2×(1,200+1,800)−2,850))Labor efficiency variance =$3,960

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Students have asked these similar questions

Gabriel is the sole owner and operator of Giant Sky Services. As of the end of its accounting period, December 31, Year 3, Giant Sky Services has assets of $1,200,000 and liabilities of $350,000. During Year 4, Gabriel invested an additional $60,000 and withdrew $45,000 from the business. What is the amount of net income during Year 4, assuming that as of December 31, Year 4, assets were $1,100,000 and liabilities were $340,000?

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Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 10.10P

1

To determine

Prepare standard cost card for each product with direct material and direct labor.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

1

Expert Solution

Answer to Problem 10.10P

Standard cost of A6 is $28.42 and Z7 is $41.01

Explanation of Solution

Standard cost of A6

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×1.8)+(1.4×2)+(19.8×0.2)+(19.2×0.8)Standard cost =$28.42

Standard cost of Z7

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×3)+(1.4×4.5)+(19.8×0.35)+(19.2×0.9)Standard cost =$41.01

2

To determine

Compute material price variance and material quantity variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

2

Expert Solution

Answer to Problem 10.10P

The material price variance of X442 is $1,450 and Y661 is $775 and material quantity variance X442 is $700 and Y661 is $1,400.

Explanation of Solution

Material price variance of X442

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(14,500×( 52,200 14,500 −3.5))Material price variance =14,500×(3.6−3.5)Material price variance =$1,450

Material price variance of Y661

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(15,500×( 1.4− 20,925 15,500 ))Material price variance =14,500×(1.4−1.35)Material price variance =$775

Material quantity variance X442

Material quantity variance = ( Actual material cost per unit× ( Material used in A6+ Material used in Z7 ) − Material used)Material quantity variance =3.5×((2,700+6,000)-8,500)Material quantity variance =$700

Material quantity variance Y661

Material quantity variance = ( Actual material cost per unit× ( Material used−( Material used in A6+ Material used in Z7 ) ))Material quantity variance =1.4×(13,000−(3,000+9,000))Material quantity variance =$1,400

3

To determine

Compute labor rate variance and labor efficiency variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

3

Expert Solution

Answer to Problem 10.10P

The labor rate variance of sintering is $3,240 and finishing is $5,130 and labor efficiency variance of sintering is $3,960 and finishing is $3,960.

Explanation of Solution

Labor rate variance for sinteringLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =1,200×( 27,000 1,200−19.8)Labor rate variance =$3,240

Labor efficiency variance for sintering Labor efficiency variance = ( Actual labor cost per unit× ( Used labor hour -( Labor hour used in A6 +Labor hour used in Z7 ) ))Labor efficiency variance =19.8×(1,200−(300+700))Labor efficiency variance =$3,960

Labor rate variance for FinishingLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =2,850×( 59,850 2,850−19.2)Labor rate variance =$5,130

Labor efficiency variance for FinishingLabor efficiency variance = ( Actual labor cost per unit× ( ( Labor hour used in A6 +Labor hour used in Z7 )−Used labor hour ))Labor efficiency variance =19.2×(1,200+1,800)−2,850))Labor efficiency variance =$3,960

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 10.10P

1

To determine

Prepare standard cost card for each product with direct material and direct labor.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

1

Expert Solution

Answer to Problem 10.10P

Standard cost of A6 is $28.42 and Z7 is $41.01

Explanation of Solution

Standard cost of A6

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×1.8)+(1.4×2)+(19.8×0.2)+(19.2×0.8)Standard cost =$28.42

Standard cost of Z7

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×3)+(1.4×4.5)+(19.8×0.35)+(19.2×0.9)Standard cost =$41.01

2

To determine

Compute material price variance and material quantity variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

2

Expert Solution

Answer to Problem 10.10P

The material price variance of X442 is $1,450 and Y661 is $775 and material quantity variance X442 is $700 and Y661 is $1,400.

Explanation of Solution

Material price variance of X442

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(14,500×( 52,200 14,500 −3.5))Material price variance =14,500×(3.6−3.5)Material price variance =$1,450

Material price variance of Y661

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(15,500×( 1.4− 20,925 15,500 ))Material price variance =14,500×(1.4−1.35)Material price variance =$775

Material quantity variance X442

Material quantity variance = ( Actual material cost per unit× ( Material used in A6+ Material used in Z7 ) − Material used)Material quantity variance =3.5×((2,700+6,000)-8,500)Material quantity variance =$700

Material quantity variance Y661

Material quantity variance = ( Actual material cost per unit× ( Material used−( Material used in A6+ Material used in Z7 ) ))Material quantity variance =1.4×(13,000−(3,000+9,000))Material quantity variance =$1,400

3

To determine

Compute labor rate variance and labor efficiency variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

3

Expert Solution

Answer to Problem 10.10P

The labor rate variance of sintering is $3,240 and finishing is $5,130 and labor efficiency variance of sintering is $3,960 and finishing is $3,960.

Explanation of Solution

Labor rate variance for sinteringLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =1,200×( 27,000 1,200−19.8)Labor rate variance =$3,240

Labor efficiency variance for sintering Labor efficiency variance = ( Actual labor cost per unit× ( Used labor hour -( Labor hour used in A6 +Labor hour used in Z7 ) ))Labor efficiency variance =19.8×(1,200−(300+700))Labor efficiency variance =$3,960

Labor rate variance for FinishingLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =2,850×( 59,850 2,850−19.2)Labor rate variance =$5,130

Labor efficiency variance for FinishingLabor efficiency variance = ( Actual labor cost per unit× ( ( Labor hour used in A6 +Labor hour used in Z7 )−Used labor hour ))Labor efficiency variance =19.2×(1,200+1,800)−2,850))Labor efficiency variance =$3,960

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Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 10.10P

1

To determine

Prepare standard cost card for each product with direct material and direct labor.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

1

Expert Solution

Answer to Problem 10.10P

Standard cost of A6 is $28.42 and Z7 is $41.01

Explanation of Solution

Standard cost of A6

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×1.8)+(1.4×2)+(19.8×0.2)+(19.2×0.8)Standard cost =$28.42

Standard cost of Z7

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×3)+(1.4×4.5)+(19.8×0.35)+(19.2×0.9)Standard cost =$41.01

2

To determine

Compute material price variance and material quantity variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

2

Expert Solution

Answer to Problem 10.10P

The material price variance of X442 is $1,450 and Y661 is $775 and material quantity variance X442 is $700 and Y661 is $1,400.

Explanation of Solution

Material price variance of X442

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(14,500×( 52,200 14,500 −3.5))Material price variance =14,500×(3.6−3.5)Material price variance =$1,450

Material price variance of Y661

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(15,500×( 1.4− 20,925 15,500 ))Material price variance =14,500×(1.4−1.35)Material price variance =$775

Material quantity variance X442

Material quantity variance = ( Actual material cost per unit× ( Material used in A6+ Material used in Z7 ) − Material used)Material quantity variance =3.5×((2,700+6,000)-8,500)Material quantity variance =$700

Material quantity variance Y661

Material quantity variance = ( Actual material cost per unit× ( Material used−( Material used in A6+ Material used in Z7 ) ))Material quantity variance =1.4×(13,000−(3,000+9,000))Material quantity variance =$1,400

3

To determine

Compute labor rate variance and labor efficiency variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

3

Expert Solution

Answer to Problem 10.10P

The labor rate variance of sintering is $3,240 and finishing is $5,130 and labor efficiency variance of sintering is $3,960 and finishing is $3,960.

Explanation of Solution

Labor rate variance for sinteringLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =1,200×( 27,000 1,200−19.8)Labor rate variance =$3,240

Labor efficiency variance for sintering Labor efficiency variance = ( Actual labor cost per unit× ( Used labor hour -( Labor hour used in A6 +Labor hour used in Z7 ) ))Labor efficiency variance =19.8×(1,200−(300+700))Labor efficiency variance =$3,960

Labor rate variance for FinishingLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =2,850×( 59,850 2,850−19.2)Labor rate variance =$5,130

Labor efficiency variance for FinishingLabor efficiency variance = ( Actual labor cost per unit× ( ( Labor hour used in A6 +Labor hour used in Z7 )−Used labor hour ))Labor efficiency variance =19.2×(1,200+1,800)−2,850))Labor efficiency variance =$3,960

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Answer 5

Chapter 10, Problem 10.10P

1

To determine

Prepare standard cost card for each product with direct material and direct labor.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

1

Expert Solution

Answer to Problem 10.10P

Standard cost of A6 is $28.42 and Z7 is $41.01

Explanation of Solution

Standard cost of A6

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×1.8)+(1.4×2)+(19.8×0.2)+(19.2×0.8)Standard cost =$28.42

Standard cost of Z7

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×3)+(1.4×4.5)+(19.8×0.35)+(19.2×0.9)Standard cost =$41.01

2

To determine

Compute material price variance and material quantity variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

2

Expert Solution

Answer to Problem 10.10P

The material price variance of X442 is $1,450 and Y661 is $775 and material quantity variance X442 is $700 and Y661 is $1,400.

Explanation of Solution

Material price variance of X442

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(14,500×( 52,200 14,500 −3.5))Material price variance =14,500×(3.6−3.5)Material price variance =$1,450

Material price variance of Y661

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(15,500×( 1.4− 20,925 15,500 ))Material price variance =14,500×(1.4−1.35)Material price variance =$775

Material quantity variance X442

Material quantity variance = ( Actual material cost per unit× ( Material used in A6+ Material used in Z7 ) − Material used)Material quantity variance =3.5×((2,700+6,000)-8,500)Material quantity variance =$700

Material quantity variance Y661

Material quantity variance = ( Actual material cost per unit× ( Material used−( Material used in A6+ Material used in Z7 ) ))Material quantity variance =1.4×(13,000−(3,000+9,000))Material quantity variance =$1,400

3

To determine

Compute labor rate variance and labor efficiency variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

3

Expert Solution

Answer to Problem 10.10P

The labor rate variance of sintering is $3,240 and finishing is $5,130 and labor efficiency variance of sintering is $3,960 and finishing is $3,960.

Explanation of Solution

Labor rate variance for sinteringLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =1,200×( 27,000 1,200−19.8)Labor rate variance =$3,240

Labor efficiency variance for sintering Labor efficiency variance = ( Actual labor cost per unit× ( Used labor hour -( Labor hour used in A6 +Labor hour used in Z7 ) ))Labor efficiency variance =19.8×(1,200−(300+700))Labor efficiency variance =$3,960

Labor rate variance for FinishingLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =2,850×( 59,850 2,850−19.2)Labor rate variance =$5,130

Labor efficiency variance for FinishingLabor efficiency variance = ( Actual labor cost per unit× ( ( Labor hour used in A6 +Labor hour used in Z7 )−Used labor hour ))Labor efficiency variance =19.2×(1,200+1,800)−2,850))Labor efficiency variance =$3,960

Answer 6

Chapter 10, Problem 10.10P

1

To determine

Prepare standard cost card for each product with direct material and direct labor.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

1

Expert Solution

Answer to Problem 10.10P

Standard cost of A6 is $28.42 and Z7 is $41.01

Explanation of Solution

Standard cost of A6

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×1.8)+(1.4×2)+(19.8×0.2)+(19.2×0.8)Standard cost =$28.42

Standard cost of Z7

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×3)+(1.4×4.5)+(19.8×0.35)+(19.2×0.9)Standard cost =$41.01

Answer 7

Chapter 10, Problem 10.10P

1

To determine

Prepare standard cost card for each product with direct material and direct labor.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

Answer 8

1

Expert Solution

Answer to Problem 10.10P

Standard cost of A6 is $28.42 and Z7 is $41.01

Answer 9

1

Expert Solution

Answer 10

1

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Standard cost of A6

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×1.8)+(1.4×2)+(19.8×0.2)+(19.2×0.8)Standard cost =$28.42

Standard cost of Z7

Standard cost =( ( Direct material cost of X442 per unit × Required material of X442 per unit )+ ( Direct material cost of Y661 per unit × Required material of Y661 per unit )+ ( Direct labor cost of sintering per unit ×Required labor hour of sintering per unit )+ ( Direct labor cost of sintering per unit × Required labor hour of sintering per unit ))Standard cost =(3.5×3)+(1.4×4.5)+(19.8×0.35)+(19.2×0.9)Standard cost =$41.01

Answer 13

2

To determine

Compute material price variance and material quantity variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

2

Expert Solution

Answer to Problem 10.10P

The material price variance of X442 is $1,450 and Y661 is $775 and material quantity variance X442 is $700 and Y661 is $1,400.

Explanation of Solution

Material price variance of X442

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(14,500×( 52,200 14,500 −3.5))Material price variance =14,500×(3.6−3.5)Material price variance =$1,450

Material price variance of Y661

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(15,500×( 1.4− 20,925 15,500 ))Material price variance =14,500×(1.4−1.35)Material price variance =$775

Material quantity variance X442

Material quantity variance = ( Actual material cost per unit× ( Material used in A6+ Material used in Z7 ) − Material used)Material quantity variance =3.5×((2,700+6,000)-8,500)Material quantity variance =$700

Material quantity variance Y661

Material quantity variance = ( Actual material cost per unit× ( Material used−( Material used in A6+ Material used in Z7 ) ))Material quantity variance =1.4×(13,000−(3,000+9,000))Material quantity variance =$1,400

Answer 14

2

To determine

Compute material price variance and material quantity variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

Answer 15

2

Expert Solution

Answer to Problem 10.10P

The material price variance of X442 is $1,450 and Y661 is $775 and material quantity variance X442 is $700 and Y661 is $1,400.

Answer 16

2

Expert Solution

Answer 17

2

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Material price variance of X442

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(14,500×( 52,200 14,500 −3.5))Material price variance =14,500×(3.6−3.5)Material price variance =$1,450

Material price variance of Y661

Material price variance =(Purchase of material×( Cost of material Purchase of material −Actual material cost per unit ))Material price variance =(15,500×( 1.4− 20,925 15,500 ))Material price variance =14,500×(1.4−1.35)Material price variance =$775

Material quantity variance X442

Material quantity variance = ( Actual material cost per unit× ( Material used in A6+ Material used in Z7 ) − Material used)Material quantity variance =3.5×((2,700+6,000)-8,500)Material quantity variance =$700

Material quantity variance Y661

Material quantity variance = ( Actual material cost per unit× ( Material used−( Material used in A6+ Material used in Z7 ) ))Material quantity variance =1.4×(13,000−(3,000+9,000))Material quantity variance =$1,400

Answer 20

3

To determine

Compute labor rate variance and labor efficiency variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

3

Expert Solution

Answer to Problem 10.10P

The labor rate variance of sintering is $3,240 and finishing is $5,130 and labor efficiency variance of sintering is $3,960 and finishing is $3,960.

Explanation of Solution

Labor rate variance for sinteringLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =1,200×( 27,000 1,200−19.8)Labor rate variance =$3,240

Labor efficiency variance for sintering Labor efficiency variance = ( Actual labor cost per unit× ( Used labor hour -( Labor hour used in A6 +Labor hour used in Z7 ) ))Labor efficiency variance =19.8×(1,200−(300+700))Labor efficiency variance =$3,960

Labor rate variance for FinishingLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =2,850×( 59,850 2,850−19.2)Labor rate variance =$5,130

Labor efficiency variance for FinishingLabor efficiency variance = ( Actual labor cost per unit× ( ( Labor hour used in A6 +Labor hour used in Z7 )−Used labor hour ))Labor efficiency variance =19.2×(1,200+1,800)−2,850))Labor efficiency variance =$3,960

Answer 21

3

To determine

Compute labor rate variance and labor efficiency variance.

Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.

Answer 22

3

Expert Solution

Answer to Problem 10.10P

The labor rate variance of sintering is $3,240 and finishing is $5,130 and labor efficiency variance of sintering is $3,960 and finishing is $3,960.

Answer 23

3

Expert Solution

Answer 24

3

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Labor rate variance for sinteringLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =1,200×( 27,000 1,200−19.8)Labor rate variance =$3,240

Labor efficiency variance for sintering Labor efficiency variance = ( Actual labor cost per unit× ( Used labor hour -( Labor hour used in A6 +Labor hour used in Z7 ) ))Labor efficiency variance =19.8×(1,200−(300+700))Labor efficiency variance =$3,960

Labor rate variance for FinishingLabor rate variance =( Total labor hours× ( Total labor cost Total labor hours ) - Actual labor cost per unit ) Labor rate variance =2,850×( 59,850 2,850−19.2)Labor rate variance =$5,130

Labor efficiency variance for FinishingLabor efficiency variance = ( Actual labor cost per unit× ( ( Labor hour used in A6 +Labor hour used in Z7 )−Used labor hour ))Labor efficiency variance =19.2×(1,200+1,800)−2,850))Labor efficiency variance =$3,960

Answer 27

Ch. 10 - Prob. 10.1Q Ch. 10 - Prob. 10.2Q Ch. 10 - Prob. 10.3Q Ch. 10 - Prob. 10.4Q Ch. 10 - Prob. 10.5Q Ch. 10 - Prob. 10.6Q Ch. 10 - Prob. 10.7Q Ch. 10 - Prob. 10.8Q Ch. 10 - Prob. 10.9Q Ch. 10 - Prob. 10.10Q

Answer to Problem 10.10P

Explanation of Solution

Answer to Problem 10.10P

Explanation of Solution

Answer to Problem 10.10P

Explanation of Solution

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