Question
In: Accounting
The direct material and direct labor standards for one case of Springbreak Tonic are: Direct Materials...
The direct material and direct labor standards for one case of Springbreak Tonic are:
|
Direct Materials (5 quarts @ $8 per quart) …………………… |
$40 |
|
Direct Labor (2 hours @ $12 per hour) ……………………….. |
24 |
During the week ended March 7, the following activity took place:
16,000 quarts of raw materials were purchased for inventory at a cost of $8.10 per quart.
3,000 cases of finished product were produced.
14,700 quarts of raw material were used.
6,300 hours of direct labor were incurred at a cost of $76,860.
Calculate the total dollar amount of each of the following variances (show your work in detail):
Raw materials purchase price variance.
Raw materials usage variance.
Direct labor efficiency variance.
Direct labor rate variance.
If you were the raw materials supervisor, how might you have preferred having the raw materials usage variance reported?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The Comet Company's budget contains these standards for materials and direct labor for a unit: Material...
The Comet Company's budget contains these standards for
materials and direct labor for a unit: Material 5 lbs. @ $1
per lb. = $5
Labor 2 hrs. @ $5 per hr. = $10
Although 2,500 units were budgeted, 3,000 were
actually produced. Materials weighing 16,000 lbs. were
purchased for $18,400. Materials weighing 15,500 lbs. were issued
to production. Direct Labor costs were $33,075 for 6,750 hrs.
A.) What's the materials price variance?
B.) What's the materials quantity variance?
C.) What's...
For Russell, Inc., direct materials standards are 5 pounds at $15 per pound, direct labor standards...
For Russell, Inc., direct materials standards are 5 pounds at
$15 per pound, direct labor standards are 2 hours at $25 per hour,
and variable overhead is applied at a rate of $50 per hour. Russell
budgeted to manufacture and sell 280,000 units for $550 per unit,
but actually manufactured and sold 300,000 units for total revenues
of $163,000,000, spending $25,000,000 for 1,600,000 pounds of
direct materials and $14,000,000 for 550,000 hours of direct labor.
Fixed overhead was budgeted at...
The standards for one case of liquid weed killer are as follows: Direct materials 6 lb...
The standards for one case of liquid weed killer are as
follows:
Direct
materials
6
lb
@
$
7.5
/lb
Direct
labor
3.6
hr
@
$
16
/hr
Variable
overhead (based on machine hours)
1.2
hr
@
$
5.5
/hr
During the week ended
May 6, the following activity took place:
4,332 machine hours were worked.
23,028 lb of raw
material were purchased for inventory at a total cost of
$176,164.
3,800 cases of
finished product were produced.
22,683...
The standards for one case of liquid weed killer are as follows: Direct materials 7 lb...
The standards for one case of liquid weed killer are as
follows:
Direct materials
7
lb
@
$
8.25
/lb
Direct labor
4
hr
@
$
17.6
/hr
Variable overhead (based on
machine hours)
1.3
hr
@
$
6.05
/hr
During the week ended May 6, the following activity took place:
5,162 machine hours were worked.
29,553 lb of raw material were purchased for inventory at a
total cost of $248,836.
4,180 cases of finished product were produced.
29,110 lb...
The standards for one case of liquid weed killer are as follows: Direct materials 7 lb...
The standards for one case of liquid weed killer are as follows:
Direct materials 7 lb @ $ 9 /lb Direct labor 4.3 hr @ $ 19.2 /hr
Variable overhead (based on machine hours) 1.4 hr @ $ 6.6 /hr
During the week ended May 6, the following activity took place:
5,559 machine hours were worked. 29,553 lb of raw material were
purchased for inventory at a total cost of $271,297. 4,180 cases of
finished product were produced. 29,110 lb...
Evergreen, Inc., has the set the following standards for direct materials and direct manufacturing labor for...
Evergreen, Inc., has the set the following standards for direct
materials and direct manufacturing labor for each 25-lb. bag of
chemical fertilizer it produces:
Per Bag
Direct Materials: 31.25 pounds of XF/2000 @
$0.10
$3.125
Direct Labor: 0.0625 hours @ $40.00 per
hour
2.500
The company had planned to produce 2,000,000 pounds of the
fertilizer during February 2018, but manufactured 25% more
fertilizer than planned, using 3,375,000 pounds of XF/2000 and
6,500 direct manufacturing labor hours. The...
Ch 15 part 2 The standards for one case of Saycheles are: Direct materials 7 lbs....
Ch 15 part 2
The standards for one case of Saycheles are:
Direct materials
7 lbs. @ $5.90/lb.
Direct labor
4.2 hrs. @ $13.00/hr.
During the week ended April 15, the following activity took
place:
• 14,500 lbs. of raw material were purchased for inventory at a
total cost of $81,200;
• 1,800 cases of finished product were produced;
• 13,680 lbs. of raw material were used;
• 7,380 labor hours were worked at an average rate of $13.40 per...
Part A Sonne Company produces a perfume called Whim. The direct materials and direct labor standards...
Part A
Sonne Company produces a perfume called Whim. The direct
materials and direct labor standards for one bottle of Whim are
given below:
During the most recent month, the following activity was
recorded:
Standard Quantity or Hours
Standards Price or Rate
Standard Cost
Direct Materials
7.2 ounces
$2.50 per ounce
$18.00
Direct Labor
0.4 ounces
$10.00 per hour
$4.00
During the most recent month, the following activity was
recorded:
a. Twenty thousand ounces of material were purchased at a...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given
Standard Quantity or Hours
Standard Priceor Rate
StandardCost
Direct materials
4.6
pounds
$
2.50
per pound
$
11.50
Direct labor
0.2
hours
$
18.00
per hour
$
3.60
During the most recent month, the following activity was recorded:
Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.
All of...
Direct Materials and Direct Labor Variances
The following information is for the standard and actual costs for the Happy Corporation.Standard Costs:Budgeted units of production - 16,000 (80% of capacity)Standard labor hours per unit - 4Standard labor rate - $26 per hourStandard material per unit - 8 lbs.Standard material cost - $ 12 per poundStandard variable overhead rate - $15 per labor hourBudgeted fixed overhead - $640,000Fixed overhead rate is based on budgeted labor hours at 80% capacity.Actual Cost:Actual production - 16,500 unitsActual material purchased and used...
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