Question

In: Accounting

Solving for Unknowns Misterio Company uses a standard costing system. During the past quarter, the following...

Solving for Unknowns

Misterio Company uses a standard costing system. During the past quarter, the following variances were computed:

Variable overhead efficiency variance $ 24,000 U
Direct labor efficiency variance 120,000 U
Direct labor rate variance 10,400 U

Misterio applies variable overhead using a standard rate of $2 per direct labor hour allowed. Two direct labor hours are allowed per unit produced. (Only one type of product is manufactured.) During the quarter, Misterio used 30 percent more direct labor hours than should have been used.

Required:

1. What were the actual direct labor hours worked?
hours

What are the total hours allowed?
hours

2. What is the standard hourly rate for direct labor?
$ per hour

What is the actual hourly rate? Round your answer to the nearest cent.
$ per hour

3. How many actual units were produced?
units

Solutions

Expert Solution

ekkarill92 answered 2 months ago
Next > < Previous

Related Solutions

Solving for Unknowns, Overhead Analysis Nuevo Company produces a single product. Nuevo employs a standard cost...
Solving for Unknowns, Overhead Analysis Nuevo Company produces a single product. Nuevo employs a standard cost system and uses a flexible budget to predict overhead costs at various levels of activity. For the most recent year, Nuevo used a standard overhead rate equal to $6.25 per direct labor hour. The rate was computed using expected activity. Budgeted overhead costs are $80,000 for 10,000 direct labor hours and $120,000 for 20,000 direct labor hours. During the past year, Nuevo generated the...
Jason Company uses a standard costing system and has set the following standards for direct materials...
Jason Company uses a standard costing system and has set the following standards for direct materials in order to produce one unit of its only product: standard quantity standard price direct materials 4 pounds $16 per pound During September, Jason Company purchased 39,000 pounds of direct materials and produced 15,000 units. At September 30, Jason had 13,000 pounds remaining in its direct materials inventory. Jason Company reported the following variances for September: Direct material price variance ........ $42,000 unfavorable Direct...
Colina Production Company uses a standard costing system. The following information pertains to the current year....
Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products. Actual production 5,500 units Actual factory overhead costs ($16,500 is fixed) $40,125 Actual direct labor costs (11,250 hours) $131,625 Standard direct labor for 5,500 units: Standard hours allowed 11,000 hours Labor rate $12.00 The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data...
Variable costing versus absorption costing. The Garvis Company uses an absorption-costing system based on standard costs....
Variable costing versus absorption costing. The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $4.50 per unit and other variable manufacturing costs of $1.50 per unit. The standard production rate is 20 units per machine-hour. Total budgeted and actual fixed manufacturing overhead costs are $840,000. Fixed manufacturing overhead is allocated at $14 per machine-hour based on fixed manufacturing costs of $840,000÷60,000$840,000÷60,000 machine-hours, which is the level Garvis uses as...
Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing...
Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. Materials price variance $1,290 U Labor quantity variance $910 U Materials quantity variance 730 F Overhead variance 830 U Labor price variance 440 U In addition, 8,490 units of product were sold at $9 per unit. Each unit sold had a standard cost of $5. Selling and administrative expenses were $7,580 for the month. Prepare an income statement for management for the month...
Alexandria Company uses a standard costing system. At the beginning of the 2020 financial year Alexandria...
Alexandria Company uses a standard costing system. At the beginning of the 2020 financial year Alexandria adopted the following standards: Inputs Total Direct materials 3 kg @ $2.50 per kg $7.50 Direct labour 5 hrs @ $7.50 per hr 37.50 Factory overhead: Variable $3.00 per direct labour hour 15.00 Fixed $4.00 per direct labour hour 20.00 Standard cost per unit $80.00 Alexandria’s July 2019 budget was based on the denominator volume of 40,000 direct labour hours. Alexandria’s actual July production...
Alexandria Company uses a standard costing system. At the beginning of the 2020 financial year Alexandria...
Alexandria Company uses a standard costing system. At the beginning of the 2020 financial year Alexandria adopted the following standards: Inputs Total Direct materials 3 kg @ $2.50 per kg $7.50 Direct labour 5 hrs @ $7.50 per hr 37.50 Factory overhead: Variable $3.00 per direct labour hour 15.00 Fixed $4.00 per direct labour hour 20.00 Standard cost per unit $80.00 Alexandria’s July 2019 budget was based on the denominator volume of 40,000 direct labour hours. Alexandria’s actual July production...
PROBLEM ONE The Kitty Manufacturing Company uses a standard absorption costing job costing system. Manufacturing overhead...
PROBLEM ONE The Kitty Manufacturing Company uses a standard absorption costing job costing system. Manufacturing overhead is allocated to products on the basis of standard direct labor hours. At the beginning of 20xx, Kitty adopted the following standards for its manufacturing costs: Direct materials           3 lb. @ $5 per lb. Direct labor                 5 hr @ $10 per hour Overhead: Variable           $5 per direct labor hour Fixed               $10 per direct labor hour The denominator level for total...
Tillis Inc. uses a standard costing system. For the month of October, the following data have...
Tillis Inc. uses a standard costing system. For the month of October, the following data have been assembled: Standard Hours Allowed Based on Actual Production 3,000 hours Standard Labor Rate $14/hour Labor Efficiency Variance $2800 U Total Direct Labor Variance $6000 U Calculate the actual direct labor rate for October.
Benoit Wines uses a standard costing system and has established the following standards for the prime...
Benoit Wines uses a standard costing system and has established the following standards for the prime costs for its Merlot by the litre:                                                               Standard quantity                          Standard price                               Standard cost Direct materials                  1.75kg of grapes                            $2.31/kg                                                 $ 4.05 Direct labou r           0.25 direct labour hours           $16.00                                         $4.00 During August, Benoit purchased 430,000 kilograms of direct materials at a total cost of $967,500 from a new supplier. The total factory wages for August were $1,080,000,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT