Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Chapter 8, Problem 4EA
Use the information provided to create a
The plastic material can usually be purchased for $20.00 per pound, and the wire costs $2.50 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.5 hours. These workers are paid $27.00 per hour. The second type of labor is finishing, which takes 2 hours. These workers are paid $29.00 per hour.
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Use the information provided to create a standard cost card for production of one glove box switch. To make one switch it takes 16 feet of plastic-coated copper wire and
0.5 pounds of plastic material. The plastic material can usually be purchased for $21.00 per pound, and the wire costs $2.40 per foot. The labor necessary to assemble a
switch consists of two types. The first type of labor is assembly, which takes 3.4 hours. These workers are paid $27.00 per hour. The second type of labor is finishing,
which takes 2 hours. These workers are paid $28.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.90 per labor hour. The fixed
overhead rate is $15.60 per hour. Round your answer to two decimal places.
Standard Cost $
Use the information provided to create a standard cost card for production of one glove box switch. To make one switch it takes 16 feet of plastic-coated copper wire and 0.5 pounds of plastic material. The plastic material can usually be purchased for $20.00 per pound, and the wire costs $2.50 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.5 hours. These workers are paid $27.00 per hour. The second type of labor is finishing, which takes 2 hours. These workers are paid $29.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.90 per labor hour. The fixed overhead rate is $15.60 per hour. Round to the penny, two decimal places.
Standard cost card
Standard Quantity
Standard Quantity Measurement
Standard Cost per Unit
Per Measurement
Cost Summary
Direct Materials
Plastic-coated copper
feet
$
per foot
$
Plastic material
pounds
$
per pound
$
Direct…
Use the information provided to create a standard cost card for production of one glove box switch. To make one switch it takes 16 feet of plastic-coated copper wire and 0.5
pounds of plastic material. The plastic material can usually be purchased for $20.00 per pound, and the wire costs $2.50 per foot. The labor necessary to assemble a switch
consists of two types. The first type of labor is assembly, which takes 3.5 hours. These workers are paid $27.00 per hour. The second type of labor is finishing, which takes 2
hours. These workers are paid $29.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.90 per labor hour. The fixed overhead rate is $15.60
per hour. Round to the penny, two decimal places.
Direct Materials
Plastic-coated copper
Plastic material
Direct Labor
Assembly
Finish
Manufacturing Overhead
Variable overhead
Fixed overhead
Standard cost
Standard Quantity
Standard cost card
Standard Quantity Standard Cost per
Measurement
Unit
feet…
Chapter 8 Solutions
Principles of Accounting Volume 2
Ch. 8 - Why does a company use a standard costing system?...Ch. 8 - This standard is set at a level that may be...Ch. 8 - This standard is set at a level that could be...Ch. 8 - This variance is the difference involving spending...Ch. 8 - This variance is the difference involving spending...Ch. 8 - What are some possible reasons for a material...Ch. 8 - When is the material price variance unfavorable?...Ch. 8 - When is the material price variance favorable? A....Ch. 8 - What are some reasons for a material quantity...Ch. 8 - When is the material quantity variance favorable?...
Ch. 8 - When is the material quantity unfavorable? A. when...Ch. 8 - What are some possible reasons for a labor rate...Ch. 8 - When is the labor rate variance unfavorable? A....Ch. 8 - When is the labor rate variance favorable? A. when...Ch. 8 - What are some possible reasons for a direct labor...Ch. 8 - When is the direct labor time variance favorable?...Ch. 8 - When is the direct labor time variance...Ch. 8 - A flexible budget______. A. predicts estimated...Ch. 8 - The variable overhead rate variance is caused by...Ch. 8 - The variable overhead efficiency variance is...Ch. 8 - The fixed factory overhead variance is caused by...Ch. 8 - Which of the following is a possible cause of an...Ch. 8 - Which of the following is a possible cause of an...Ch. 8 - Which of the following is a possible cause of an...Ch. 8 - Which of the following is a possible cause of an...Ch. 8 - What two components are needed to determine a...Ch. 8 - What two components are needed to determine a...Ch. 8 - What elements require consideration before...Ch. 8 - What is a variance?Ch. 8 - What causes the material price variance?Ch. 8 - What causes the material quantity variance?Ch. 8 - What are some possible causes of a material price...Ch. 8 - What are some possible causes of a material...Ch. 8 - What is the direct labor rate variance?Ch. 8 - What is the direct labor time variance?Ch. 8 - What are some possible causes of a direct labor...Ch. 8 - What are some possible causes of a direct labor...Ch. 8 - How is the total direct labor variance calculated?Ch. 8 - What causes the variable overhead rate variance?Ch. 8 - What causes the variable overhead efficiency...Ch. 8 - What is the main difference between a flexible...Ch. 8 - What causes a favorable variance?Ch. 8 - What causes an unfavorable variance?Ch. 8 - When might a favorable variance not be a good...Ch. 8 - When might an unfavorable variance be a good...Ch. 8 - Identify several causes of a favorable material...Ch. 8 - Identify several causes of an unfavorable material...Ch. 8 - Identify several causes of a favorable material...Ch. 8 - Identify several causes of an unfavorable material...Ch. 8 - Identify several causes of a favorable labor rate...Ch. 8 - Identity several causes of an unfavorable labor...Ch. 8 - Identify several causes of a favorable labor...Ch. 8 - Identify several causes of an unfavorable labor...Ch. 8 - Moisha is developing material standards for her...Ch. 8 - Rene is working with the operations manager to...Ch. 8 - Fiona cleans offices. She is allowed 5 seconds per...Ch. 8 - Use the information provided to create a standard...Ch. 8 - Sitka Industries uses a cost system that carries...Ch. 8 - Use the information provided to answer the...Ch. 8 - Dog Bone Bakery, which bakes dog treats, makes a...Ch. 8 - Queen Industries uses a standard costing system in...Ch. 8 - Penny Company manufactures only one product and...Ch. 8 - ThingOne Company has the following information...Ch. 8 - A manufacturer planned to use $78 of variable...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Bristol is developing material standards for her...Ch. 8 - Salley is developing material and labor standards...Ch. 8 - Use the following information to create a standard...Ch. 8 - Mateo makes gizmos. He would like to set up a...Ch. 8 - Smith Industries uses a cost system that carries...Ch. 8 - Lizbeth, Inc., makes ice cream. The toffee coffee...Ch. 8 - Woodpecker manufactures sawmill equipment. They...Ch. 8 - Case made 24,500 units during June, using 32,000...Ch. 8 - Eagle Inc. uses a standard cost system. During the...Ch. 8 - A manufacturer planned to use $45 of variable...Ch. 8 - Fitzgerald Company manufactures sewing machines,...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - The comptroller wants to set the standards...Ch. 8 - Stan is opening a coffee shop next to Big State...Ch. 8 - What makes a variance favorable? Give an example...Ch. 8 - April Industries employs a standard costing system...Ch. 8 - Ed Co. manufactures two types of O rings, large...Ch. 8 - The Whizbang Company makes a special type of toy....Ch. 8 - Ellis Companys labor information for September is...Ch. 8 - Breakaway Companys labor information for May is as...Ch. 8 - Power Co.s labor information for June is as...Ch. 8 - Prepare a flexible budget for overhead based on...Ch. 8 - Reddy Corporation has collected the following data...Ch. 8 - ABC Inc. spent a total of $48,000 on factory...Ch. 8 - Recompute the variances from the second Acme Inc....Ch. 8 - Sameerah is trying to determine the standard hours...Ch. 8 - Carl cleans offices. He has the following...Ch. 8 - Freidrich is working with the operations manager...Ch. 8 - A company bought 45,000 pounds of plastic pellets...Ch. 8 - Illinois Company is a medium-sized company that...Ch. 8 - Corolla Manufacturing has a standard cost for...Ch. 8 - Marymount Company makes one product. In the month...Ch. 8 - Adam Inc.s records for May include the following...Ch. 8 - Ribcos labor cost information for making its only...Ch. 8 - Use the following standard cost card for 1 gallon...Ch. 8 - Use the following standard cost card for 1 gallon...Ch. 8 - How do you balance a firms need to succeed and the...Ch. 8 - What type of firm would use standard costing? What...Ch. 8 - Is labor a true variable cost?Ch. 8 - Why would managers use a flexible budget? What...Ch. 8 - Fill in the blanks in the following flexible...Ch. 8 - Before automation became more prevalent, overhead...Ch. 8 - In your opinion, is it important that an...
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