Question
In: Accounting
Standard Cost and Budgeted Cost
Seven Manufacturing Corporation uses both standards and budgets. The company estimates that production for the year will be 100,000 units of Product Fast. To produce these units of Product Fast, the company expects to spend $600,000 for materials and $800,000 for labor.
Instructions : Compute the estimates for (a) standard cost and (b) budgeted cost.
Solutions
Expert Solution
Standard Cost is the cost per unit, and budgeted is the total cost. Since the question already mentioned the total amount of the cost, we only need to divide it by the total unit to find the Standard Cost, and use the cost that mentioned before for the Budgeted Cost.
| A | Standard Cost (Unit Amount) | ||
| Direct Material | |||
| 600000/100000= | 6 | ||
| Direct Labor | |||
| 800000/100000 = | 8 | ||
| B | Budgeted Cost (Total Amount) | ||
| Direct Material = 600000 | |||
| Direct Labor = 800000 | |||
Ucok answered 3 years agoRelated Solutions
A variance is the difference between a budgeted, planned, or standard cost and the actual amount...
A variance is the difference between a budgeted, planned, or
standard cost and the actual amount
incurred/sold. Variances can be computed for both costs and
revenues. Identify and explain the types
of variance analysis tools, which can be used in a production
department of a manufacturing company,
which specialises in spare parts for cars
Budgeted cost of a single unit Standard based on perfect conditions Standard based on attainable conditions...
Budgeted cost of a single unit
Standard based on perfect conditions
Standard based on attainable conditions
Standard quantity of direct materials multiplied by standard
price of direct
Should explain direct labor rate variances
Should know why the company was able to purchase materials at a
better
Tells managers how much of the total variance is due to using a
larger or smaller quantity of direct materials than expected
Tells managers how much of the total labor variance is due to...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for
control purposes. The following budgeted information pertains to
2019:
Denominator volume—number of
units
9,000
Denominator volume—percent of
capacity
90
%
Denominator volume—standard
direct labor hours (DLHs)
27,000
Budgeted variable factory
overhead cost at denominator volume
$
103,700
Total standard factory overhead
rate per DLH
$
15.10
During 2019, Bluecap worked 26,000 DLHs and manufactured 9,100
units. The actual factory overhead cost for the year was $13,000
greater than the...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for
control purposes. The following budgeted information pertains to
2016:
Denominator volume-number of units
8,000
Denominator volume-percent of capacity
80%
Denominator volume-standard direct labor hours
24,000
Budgeted variable factory overhead cost at the denominator
volume
$103,200
Total standard factory overhead rate per direct labor hour
$15.10
During 2016, Bluecap worked 28,000 direct labor hours and
manufactured 9,600 units. The actual factory overhead was $14,000
greater than the flexible budget amount...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for
control purposes. The following budgeted information pertains to
2019: Denominator volume—number of units 8,000 Denominator
volume—percent of capacity 80%Denominator volume—standard direct
labor hours (DLHs) 24,000 Budgeted variable factory overhead cost
at denominator volume$103,200 Total standard factory overhead rate
per DLH$15.10 During 2019, Bluecap worked 28,000 DLHs and
manufactured 9,600 units. The actual factory overhead cost for the
year was $14,000 greater than the flexible budget amount for the
units...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for
control purposes. The following budgeted information pertains to
2019:
Denominator volume—number of units
7,000
Denominator volume—percent of capacity
70
%
Denominator volume—standard direct labor hours (DLHs)
35,000
Budgeted variable factory overhead cost at denominator
volume
$
102,700
Total standard factory overhead rate per DLH
$
15.10
During 2019, Bluecap worked 44,000 DLHs and manufactured 9,000
units. The actual factory overhead cost for the year was $15,000
greater than the...
3. Dow Company manufactures tables in U.S. The standard (budgeted) cost of one unit is shown...
3. Dow Company manufactures tables in U.S. The
standard (budgeted) cost of one unit is shown below:
Direct materials
9 pounds at $4 per pound
$36
Direct labour
2 hours at $45 per hour
90
Variable manufacturing overhead*
2 hours at $15 per hour
30
Total standard variable cost per unit
$156
*The variable manufacturing overhead rate is based on direct
labour hour.
During March, 8,000 units were produced. The company purchased
80,000 pounds of direct materials at a cost...
Jones Company has implemented a standard cost system for the company. The company has budgeted $63,000...
Jones Company has implemented a standard cost system for the
company. The company has budgeted $63,000 for fixed mfg. overhead
costs and plans on producing 4,500 units in the next
year. Some of the standard costs are given
below:
Standard
Cost
per
Unit
Direct material, 4 lbs./unit X $2.60/lb.
= $10.40
Direct labor, 2 hours/unit X $9/hour
= 18.00
Fixed Mfg. overhead = 14.00
During the year, the company produced 4,800 units...
1.) If budgeted beginning inventory is $8,800, budgeted ending inventory is $10,000, and budgeted cost of...
1.)
If budgeted beginning inventory is $8,800, budgeted ending
inventory is $10,000, and budgeted cost of goods sold is $10,760,
budgeted purchases should be:
$1,960
$760
$11,960
$1,200
$9,560
2.)
Use the following information to determine the ending cash
balance to be reported on the month ended June 30 cash budget.
a.
Beginning cash balance on June
1, $94,900.
b.
Cash receipts from sales,
$417,500.
c.
Budgeted cash disbursements for
purchases, $272,500.
d.
Budgeted cash disbursements for
salaries, $95,900.
e....
The standard variable overhead cost rate for Harris Manufacturing is $30.00 per unit. Budgeted fixed overhead...
The standard variable overhead cost rate for Harris
Manufacturing is $30.00 per unit. Budgeted fixed overhead cost is
$38,700. Harris Manufacturing budgeted 4,300 units for the current
period and actually produced 4,400 finished units. What is the
fixed overhead volume variance?
Assume the allocation base for fixed overhead costs is
the number of units expected to be produced.
A. $900 favorable
B. $3,000 favorable
C. $3,000 unfavorable
D. $900 unfavorable
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- JAVASCRIPT: Please create an array of student names and another array of student grades. - Create...
- Topic - Construction: Structural, loads, tension 1.) Explain why pure tension members are the most efficient...
- Procter and Gamble (PG) paid an annual dividend of $ 1.62$1.62 in 2009. You expect PG...
- locate a recent case of online child pornography. Write a summary of the incident and describe...
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...
- Suggest journal, research paper link reference. i need this as reference for writing a research with...
- Cryptography is used heavily in internet communications. True or false? Explain
ADVERTISEMENT