Question
In: Accounting
Upstate Co. manufactures a product that has the following standard costs per unit: Direct materials:...
Upstate Co. manufactures a product that has the following standard costs per unit:
Direct materials: 40 yards at $2.70 per yard $108
Direct labor: 7 hours at $18 per hour 126
Total
$234
Following information pertains to July:
Direct material purchased: 42,500 yards at
$2.78 per yard
Direct material used: 38,000 yards
Direct labor used: 7,500 hours at $18.30
per hour
Budgeted production: 1,200 units
Actual completed production: 1,050 units
Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Also, briefly explain about the possible cause(s) of the variances.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Sara's company manufactures a product with the following costs: Per Unit Per Year Direct materials $...
Sara's company manufactures a product with the following
costs:
Per Unit
Per Year
Direct materials
$
25.30
Direct labor
$
14.30
Variable manufacturing overhead
$
2.50
Fixed manufacturing overhead
$
1,275,000
Variable selling and administrative expenses
$
2.40
Fixed selling and administrative expenses
$
1,249,500
The company uses the absorption costing approach to cost-plus
pricing described in the text. The pricing calculations are based
on budgeted production and sales of 85,000 units per year.
The company has invested $260,000 in...
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for...
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it manufactures. Direct
materials (15 lbs. @ $4 per lb.) $60 Direct labor (4 hrs. @ $14 per
hr.) 56 During May the company incurred the following actual costs
to produce 8,200 units. Direct materials (125,700 lbs. @ $3.80 per
lb.) $ 477,660 Direct labor (36,900 hrs. @ $14.10 per hr.). 520,290
AH = Actual Hours SH = Standard Hours AR =...
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for...
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it
manufactures.
Direct materials (16 lbs. @ $4 per lb.)
$64
Direct labor (3 hrs. @ $15 per hr.)
45
During May the company incurred the following actual costs to
produce 8,600 units.
Direct materials (139,900 lbs. @ $3.80 per lb.)
$
531,620
Direct labor (29,100 hrs. @ $15.10 per hr.).
439,410
AQ = Actual Quantity
SQ = Standard Quantity
AP =...
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for...
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it manufactures.
Direct materials (15 lbs. @ $4
per lb.)
$60
Direct labor (3 hrs. @ $14 per
hr.)
42
During May the company incurred the following actual costs to
produce 8,400 units.
Direct materials (129,900 lbs. @
$3.80 per lb.)
$
493,620
Direct labor (28,300 hrs. @
$14.10 per hr.).
399,030
AQ = Actual Quantity
SQ = Standard Quantity
AP =...
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for...
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it
manufactures.
Direct materials (15 lbs. @ $3 per lb.)
$45
Direct labor (3 hrs. @ $16 per hr.)
48
During May the company incurred the following actual costs to
produce 8,800 units.
Direct materials (135,000 lbs. @ $2.80 per lb.)
$
378,000
Direct labor (29,700 hrs. @ $16.10 per hr.).
478,170
AH = Actual Hours
SH = Standard Hours
AR =...
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for...
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it
manufactures.
Direct materials (15 lbs. @ $3 per lb.)
$45
Direct labor (2 hrs. @ $15 per hr.)
30
During May the company incurred the following actual costs to
produce 8,400 units.
Direct materials (129,400 lbs. @ $2.80 per lb.)
$
362,320
Direct labor (20,500 hrs. @ $15.10 per hr.).
309,550
AH = Actual Hours
SH = Standard Hours
AR =...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for...
Reed Corp. has set the following standard direct materials and
direct labor costs per unit for the product it
manufactures.
Direct materials (15 lbs. @ $4 per lb.)
$60
Direct
labor (3 hrs. @ $15 per hr.)
45
During June the company incurred the following actual costs to
produce 8,500 units.
Direct materials (130,400 lbs. @ $3.70 per lb.)
$
482,480
Direct
labor (29,700 hrs. @ $15.15 per hr.).
449,955
AQ = Actual Quantity
SQ = Standard Quantity
AP =...
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for...
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it
manufactures.
Direct materials (14 lbs. @ $4 per lb.)
$56
Direct labor (3 hrs. @ $16 per hr.)
48
During May the company incurred the following actual costs to
produce 8,100 units.
Direct materials (116,300 lbs. @ $3.80 per lb.)
$
441,940
Direct labor (28,900 hrs. @ $16.10 per hr.).
465,290
AQ = Actual Quantity
SQ = Standard Quantity
AP =...
Wright, Inc. manufactures a product that has the following standard costs: Direct materials: 30 yards at...
Wright, Inc. manufactures a product that has the following
standard costs:
Direct materials: 30 yards at $4.75 per
yard
$142.50
Direct labor: 7 hours at $18.00 per
hour
126.00
Total
$268.50
The following information pertains to July:
Direct material costs 20,000 yards at $4.50 per yard, or
$90,000
(quantity purchased and quantity used are the same).
Direct labor: 4,500 hours at $18.25 per hour, or $82,125
Actual completed production: 650 units
Answer and Show Work:
Calculate the following variances...
Dickson Corporation makes a product with the following costs: Per Unit Per Year Direct materials $...
Dickson Corporation makes a product with the following costs:
Per Unit Per Year Direct materials $ 18.20 Direct labor $ 22.30
Variable manufacturing overhead $ 2.90 Fixed manufacturing overhead
$ 1,296,000 Variable selling and administrative expenses $ 1.10
Fixed selling and administrative expenses $ 1,104,000 The company
uses the absorption costing approach to cost-plus pricing described
in the text. The pricing calculations are based on budgeted
production and sales of 60,000 units per year. The company has
invested $320,000 in...
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