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Question 2: Standard Costing Jones Jimmy Company produces a single product – a jumping jack. Variable...
Question 2: Standard Costing
Jones Jimmy Company produces a single product – a jumping jack.
Variable manufacturing overhead is applied to products on the basis of direct labour-hours.
The standard costs for one unit of product are as follows:
|
Direct Material: 10 kilograms $2.80 per kilogram |
$28.00 |
|
Direct Labour: 2.5 hours at $40.00 per hour |
$100.00 |
|
Variable Manufacturing Overhead: 1.5 hours at $18.00 per hour |
$27.00 |
|
Total Standard Variable Cost Per Unit |
$155.00 |
During the month, 9,700 units were produced. The costs associated with March’s operations were as follows:
|
Direct Material: 96,000 kilograms $2.95 per kilogram |
$283,200.00 |
|
Material Used in Production: 98,000 kilograms |
- |
|
Direct Labour: 26,000 hours at $42.50 per hour |
$1,105,000.00 |
|
Variable Manufacturing Overhead |
$256,900.00 |
Required:
(1) Compute all the key variances for direct materials, direct labour, and variable manufacturing.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Question 1 Cannes Inc. produces and sells a single product. The company uses standard costing for...
Question 1
Cannes Inc. produces
and sells a single product. The company uses standard costing for
accounting purposes. The standard cost for the product is as
follows:
Standard Cost Data
Standard Cost Per Unit
Direct material
2 metres at $6.45 per metre
$12.90
Direct labour
1.4
DLH at $12 per DLH
$16.80
Variable overhead
1.4
DLH at $2.50 per DLH
$3.50
Fixed overhead
1.4
DLH at $6 per DLH
$8.40
$41.60
For the year just
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Jackman Company produces a single product. Jackman employs a
standard costing sys-
tem and uses a flexible budget to predict overhead costs at
various levels of activity. For
the most recent year, Jackman used a standard overhead rate
equal to $6.25 per direct
labor hour. The rate was computed using expected activity.
Budgeted overhead costs
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20,000 direct labor hours.
During the past year, Jackman generated the following data:
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QUESTION 2
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$40 each. Variable manufacturing costs (including direct materials,
director labor, and variable manufacturing overhead) total $10 per
unit. Variable selling and administrative cost is $5 per unit.
Fixed manufacturing overhead cost is $100,000 each year. Fixed
selling and administrative cost is $80,000 each year. There is no
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Required: (Please...
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Task 1: Standard Costing & Variance
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Kita Ltd, produces a single product in one of its factory. For
control and measurement purposes, a standard costing system was
recently introduced and is now in operation.
The standards set for the month of May were as
follows:
Production and sales
16,000 units
Selling price (per unit)
RM140
Materials:
Material
XX
6 kilos per unit at RM12.25 per kilo
Material
YY
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Jones Company has the following standards for its single product: standard quantity standard price direct materials...
Jones Company has the following standards for its single product:
standard quantity standard price
direct materials 13 pounds per unit $5.10 per pound
direct labor 6 hours per unit $16.00 per hour
variable overhead 6 hours per unit $11.00 per hour
Jones Company reported the following information for the month of October:
1. 4,280 units were produced.
2. 63,000 pounds of direct materials were purchased at cost of $5.40 per
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are $13.1 per unit and variable selling and administrative expenses
are $4.1 per unit. Fixed manufacturing overhead totals $47,000 and
fixed selling and administration expenses total $51,000. Assuming a
beginning inventory of zero, production of 5,100 units and sales of
4,150 units, the dollar value of the ending inventory under
variable costing would be:
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Manlius Company produces a single product. Variable manufacturing overhead is applied to products on the basis...
Manlius Company produces a single product. Variable
manufacturing overhead is applied to products on the basis of
direct labor hours. The standard costs for one unit of product are
as follows:
Direct material: 6 ounces at $0.50 per ounce
$3.00
Direct labor: 0.6 hours at $30.00 per hour
$18.00
Variable manufacturing overhead: 0.6 hours at $10.00 per
hour
$6.00
Total standard variable cost per unit
$27.00
During January, 2,000 units were produced. The costs associated
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Manlius Company produces a single product. Variable manufacturing overhead is applied to products on the basis...
Manlius Company produces a single product. Variable
manufacturing overhead is applied to products on the basis of
direct labor hours. The standard costs for one unit of product are
as follows: Direct material: 6 ounces at $0.50 per ounce $3.00
Direct labor: 0.6 hours at $30.00 per hour $18.00 Variable
manufacturing overhead: 0.6 hours at $10.00 per hour $6.00 Total
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The following data apply to the standard cost of materials and
labor associated with making the product:
Materials quantity per unit
1
pound
Materials price
$
6.10
per pound
Labor quantity per unit
2
hours
Labor price
$
10.10
per hour
During the year, the company made 2,020 units of product. At the
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Materials usage variance
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Favorable
Materials price variance
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Year 1
Year 2
Units in beginning inventory
0
1,000
Units produced
9,000
9,000
Units sold
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10,000
Year 1
Year 2
Sales
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Cost of goods sold
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60,000
Gross margin
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40,000
Selling and administrative expenses
28,000
30,000
Net operating income
$4,000
$10,000
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