Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
Book Icon
Chapter 8, Problem 8.38P

1.a

To determine

To compute: Total pounds of direct materials purchased.

Given information:

August 2014,

Direct material price variance is $179,300.

Direct material price variance per pound is $1.10.

b.

To determine

To compute: Total number of pounds of excess direct materials used.

Given information:

August 2014,

Units produced are 20,000 units.

Budgeted quantity of materials input for each output unit is 6 pounds.

Efficiency variance is $75,900.

Budgeted price of input is $11.50.

c.

To determine

To compute: Variable manufacturing overhead spending variance.

Given information:

August 2014,

Variable overhead efficiency variance is $18,100.

Variable overhead flexible budget variance is $10,400.

d.

To determine

To compute: Total number of actual direct manufacturing labor-hours used.

Given information:

August 2014,

Direct manufacturing labor cost incurred is $535,500.

Budgeted direct labor cost at 50,000 budgeted direct manufacturing labor-hour level for August is $1,250,000.

e.

To determine

To compute: Total number of standard direct manufacturing labor-hours allowed for the units produced.

Given information:

August 2014,

Total number of actual labor hours used as computed is 21,000 hours

Efficiency variance is $40,000.

Budgeted price of input is $25.

f.

To determine

To compute: Production-volume variance.

Given information:

August 2014,

Budgeted fixed overheads are $1,000,000.

Budgeted fixed overhead rate is $200 per hour($1,000,00050,000 labor hours)

Labor hours allocated for actual output is 19,400 hours.

2.

To determine

G’s control of variable manufacturing overhead items differs from its control of fixed manufacturing overhead items.

Blurred answer
Students have asked these similar questions
Question 4
Questin 5
Belle Garments manufactures customized T-shirts for football teams. The business uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. The business operates at a profit margin of 33% on sales. Belle Garments expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2025. At the end of December 2024, Belle Line Garments reported work in process inventory of $93,980 - Job FBT 101 - $51,000 & Job FBT 102 - $42,980 The following events occurred during January 2025. i) Purchased materials on account, $388,000. The purchase attracted freight charges of $4,000 ii) Incurred manufacturing wages of $400,000 iii) Requisitioned direct materials and used direct labour in manufacturing. Job # FBT 101 FBT 102 FBT 103 FBT 104 Direct Materials $70,220 97,500 105,300 117,000 iv) Issued indirect materials to production, $30,000. Direct Labour $61,200…
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education