Question
In: Accounting
You have been given the following per unit information about the production of Gillian Inc., and...
You have been given the following per unit information about the production of Gillian Inc., and are asked to provide the plant manager with information for a meeting with the vice-president of operations:
| Standard Quantity |
Standard Price |
Actual Quantity |
Actual Price |
|
| Direct materials | 5 kg | $3 / kg | 5.5 kg | $2.80 / kg |
| Direct labour | 1.5 hours | $18 / hour | 1.0 hours | $16 / hour |
Production data, both budgeted and actual, for the year are as follows:
| Description | Amount |
| Actual production (units) | 40,000 |
| Actual materials purchased and used (kg) | 220,000 |
The plant manager has asked you to calculate the following variances: direct material price variance, direct material usage variance, direct labour rate variance, and the direct labour efficiency variance. Use your work to answer the following questions.
The total direct material price variance is $_______________.
The direct material price variance is
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The total direct material usage variance is $_______________.
The direct material usage variance is
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The total labour rate variance is $_______________.
The direct labour rate variance is
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The total labour efficiency variance is $_______________.
The direct labour efficiency variance is
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Solutions
ekkarill92 answered 1 year agoRelated Solutions
You have been given the following information: Expected Production Direct Labor-Hours (DLH) Per Unit Total Direct...
You have been given the following
information:
Expected Production
Direct Labor-Hours (DLH) Per Unit
Total Direct
Labor-Hours
Product M
700
7.0
4,900
Product N
100
4.0
400
Total direct labor-hrs
5,300
The direct labor rate is $24.20 per DLH. The direct
materials cost per unit for each product is given
below:
Direct Materials
Cost per Unit
Product M
$279.00
Product N
$251.00
The company is considering adopting an activity-based
costing system with the following activity cost pools, activity
measures, and...
You have been given the following information about the production of Usher Co. and are asked...
You have been given the following information about the
production of Usher Co. and are asked to provide the plant manager
with information for a meeting with the vice president of
operations. Standard Cost Card Direct materials (5 pounds at $4 per
pound) $20.00 Direct Labor (0.8 hours at $10) 8.00 Variable
Overhead (0.8 hours at $3 per hour) 2.40 Fixed Overhead (0.8 hours
at $7 per hour) 5.60 $36.00 The following is a variance report for
the most recent...
You have been given the following information about a motel for the coming year: &
You have been given the following information about a motel for
the coming
year:
(A)
Occupancy Forecast
75%
(B)
Rooms department variable cost per occupied room is estimated to
be
$7.75
(C)
Owners'
investment
$800,000
(D)
Desired after tax yield on owners' investment
15%
(E)
Current income tax rate
30%
(F)
The motels fixed costs for the coming year were anticipated to be
825,000
(G)
The motel has this many rooms available to rent
100...
You have been given the following information for Spector Inc.: Retained earnings as at January 1,...
You have been given the following information for Spector
Inc.:
Retained earnings as at January 1, 20X7, were $50,000.
The statement of comprehensive income for the year ended
December 31, 20X7, reported comprehensive income of $12,000
comprising net income of $5,000 and other comprehensive income of
$7,000.
Spector paid out $30,000 in cash dividends during the 20X7
fiscal year. Its dividend payable account increased by
$3,000.
What is the balance in Spector Inc.’s retained earnings
account as at December 31,...
You have been asked to look at production options for the Android01, since production methods and allocation of costs have implications for cost per unit.
You have been asked to look at production options for the Android01, since production methods and allocation of costs have implications for cost per unit. Two alternative methods of production are being considered. Begin by gathering data (using financial information in decision making), then determine the suitability of the project.
The production of Android01 will share some production facilities and service divisions with Processor01. Fixed costs are $5 million per year, and will be assigned at the rate of...
Given: the following information Variable cost per unit = $1.25 Selling price per unit = $1.00...
Given: the following information
Variable cost per unit = $1.25
Selling price per unit = $1.00
Fixed Cost/Month = $40,000
Solve for:
A.) How many units per month must be
produced to break-even (Q)?
Given:
The following information:
Variable cost per unit = $1.25
Q = Breakeven quantity units per month solved in
part a .
Fixed Cost/Month = $40,000
New selling price = ?? (Solve for)
Solve for:
B.) What should the new selling price must be
in order to make...
As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material...
As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 2 springs, and 4 clamps. The base is assembled from 2 clamps and 2 housings. Each clamp has 1 handle and 1 casting. Each housing has 2 bearings and 2 shafts. There is no inventory on hand. a) Design a product structure noting the quantities for each item and show the low-level coding. Match...
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department...
Costs per Equivalent Unit and Production Costs
The following information concerns production in the Forging
Department for November. All direct materials are placed into the
process at the beginning of production, and conversion costs are
incurred evenly throughout the process. The beginning inventory
consists of $105,410 of direct materials.
ACCOUNT Work in Process—Forging
Department
ACCOUNT NO.
Date
Item
Debit
Credit
Balance
Debit
Credit
Nov.
1
Bal., 8,300 units, 30% completed
114,125
30
Direct materials, 76,000 units
942,400
1,056,525
30
Direct...
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department...
Costs per Equivalent Unit and Production Costs
The following information concerns production in the Forging
Department for November. All direct materials are placed into the
process at the beginning of production, and conversion costs are
incurred evenly throughout the process. The beginning inventory
consists of $115,200 of direct materials.
ACCOUNT Work in Process—Forging
Department
ACCOUNT NO.
Date
Item
Debit
Credit
Balance
Debit
Credit
Nov.
1
Bal., 9,000 units, 70% completed
137,880
30
Direct materials, 82,000 units
1,033,200
1,171,080
30
Direct...
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department...
Costs per Equivalent Unit and Production Costs
The following information concerns production in the Forging
Department for September. All direct materials are placed into the
process at the beginning of production, and conversion costs are
incurred evenly throughout the process. The beginning inventory
consists of $52,070 of direct materials.
ACCOUNT Work in Process—Forging
Department
ACCOUNT NO.
Date
Item
Debit
Credit
Balance
Debit
Credit
Sept.
1
Bal., 4,100 units, 30% completed
54,899
30
Direct materials, 37,000 units
458,800
513,699
30
Direct...
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