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

Want to see more full solutions like this?

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 11, Problem 11.10P

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 11.10P

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 11.10P

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 11.10P

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

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Paid Returns and Merchandise by Seller Freight Terms Allowances a. $9,400 $282 FOB Shipping Point, 1/10, net 30 $900 b. $8,600 $60 FOB Destination, 2/10, net 45 $1,900 a. $ b. $

Travis Company purchased merchandise on account from a supplier for $13,200, terms 2/10, net 30 on December 26. Travis Company paid for the merchandise on December 31, within the discount period. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.

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 11, Problem 11.10P

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 11.10P

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 11.10P

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 11.10P

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

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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 11, Problem 11.10P

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 11.10P

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 11.10P

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 11.10P

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

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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 11, Problem 11.10P

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 11.10P

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 11.10P

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 11.10P

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

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 11.10P

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 11.10P

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 11.10P

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 11.10P

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 11, Problem 11.10P

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 11.10P

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 11, Problem 11.10P

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 11.10P

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 11.10P

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 11.10P

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 11.10P

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 11.10P

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. 11 - Prob. 11.1Q Ch. 11 - Prob. 11.2Q Ch. 11 - Prob. 11.3Q Ch. 11 - Prob. 11.4Q Ch. 11 - Prob. 11.5Q Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - Prob. 11.8Q Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Answer to Problem 11.10P

Explanation of Solution

Answer to Problem 11.10P

Explanation of Solution

Answer to Problem 11.10P

Explanation of Solution

Want to see more full solutions like this?

Chapter 11 Solutions