Question

In: Accounting

Manufacturing Cost Variances. a) Make up your own Standard and Actual data for a production run...

Manufacturing Cost Variances.

a) Make up your own Standard and Actual data for a production run of 20,000 units of a product. Make sure your actual data is different than your standard data. Use the following formats for 20,000 units:

              Cost Type                   Standard Price/Rate   x    Standard Quantity = Standard Cost

Direct Materials (DM)         $?.??                   x                     ???          =            ???                         

Direct Labor (DL)                 $?.??                   x                     ???          =            ???                          

Factory Overhead (FO)        $?.??                   x                     ???            =           ???                         

                                     Total Standard Product Cost for 20,000 units   =           ????

             Cost Type                   Actual Price/Rate          x    Actual Quantity =       Actual Cost

Direct Materials (DM)         $?.??                   x                     ???          =            ???                          

Direct Labor (DL)                 $?.??                   x                    ???          =            ???                         

Factory Overhead (FO)        $?.??                   x                     ???            =           ???                         

                                     Total Actual Product Cost for 20,000 units        =          ????

b) Calculate your Standard and Actual product cost per unit.

c) Calculate your Direct Materials (DM) Price Variance, DM Quantity Variance, and total DM Cost Variance.

d) Calculate your Direct Labor (DL) Rate Variance, DL Time Variance, and total DL Cost Variance.

e) Calculate your total Factory Overhead (FO) cost variance.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down...
Material and Labor Variances The following actual and standard cost data for direct material and direct...
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual Costs Standard Costs Direct material 4,200 lbs. @ $4.90 4,000 lbs. @ $5.20 Direct labor 5,700 hrs. @ $9.30 6,000 hrs. @ $9.50 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials...
Question 2 – Chap. 10 Material and Labor Variances The following actual and standard cost data...
Question 2 – Chap. 10 Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual Costs Standard Costs Direct material 17,550 lbs. @ $5.30 18000 lbs. @ $5.10 Direct labor 27,900 hrs. @ $8.40 27,000 hrs. @ $8.70 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable...
Make up your own data in the following format, and use the data to calculate the...
Make up your own data in the following format, and use the data to calculate the amounts in parts a), b), c), d) and e): Current Assets:                                                  $???,??? Current Liabilities:                                            $???,???   Total Liabilities:                                                $???,???   Total Stockholders’ Equity:                              $???,??? Net Income (2020, current year):                      $???,??? Net Income (2019, the previous year):                   $???,??? Preferred Dividends (current):                            $??,??? Common Stock Outstanding (current):                ???,??? shares Common Stock Market Price (current):                $??.00 per share Calculate the following (round to nearest 0.00): a) The ratio of...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Tyler Company for September: Standard cost per unit Direct materials 4 units of material A × $2.00 per unit 1 unit of material B × $3.00 per unit Direct labor 3 hours × $8.00 per hour Activity for September Materials purchased Material A 2,600 units × $2.05 per unit Material B 700 units × $3.10 per unit Materials used Material A 2,250 units...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Repine Company for September: Standard cost per unit Direct materials 3 units of material A x $8.00 per unit 2 units of material B x $4.00 per unit Direct labor 2 hours x $15.00 per hour Activity for September Materials purchased Material A 7,000 units x $7.80 per unit Material B 4,800 units x $4.50 per unit Materials used Material A 6,430 units...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Repine Company for September: Standard cost per unit Direct materials 4 units of material A x $ 6.00 per unit 1 unit of material B x $ 8.00 per unit Direct labor 3 hours x $ 18.00 per hour Activity for September Materials purchased Material A 6,750 units x $ 6.20 per unit Material B 1,650 units x $ 8.50 per unit Materials...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 8,000 computers: Actual: Variable factory overhead $188,200 Fixed factory overhead 61,750 Standard: 8,000 hrs. at $29 232,000 If productive capacity of 100% was 13,000 hours and the total factory overhead cost budgeted at the level of 8,000 standard hours was $255,750, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead $229,900 Fixed factory overhead 65,000 Standard: 6,000 hrs. at $46 276,000 If productive capacity of 100% was 10,000 hours and the factory overhead cost budgeted at the level of 6,000 standard hours was $302,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 1,900 automobile tires: Actual: 57,600 lbs. at $1.7 per lb. Standard: 56,400 lbs. at $1.65 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Direct Materials Quantity Variance $...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT