Question

In: Accounting

The following information describes actual production activities of the Oliver Corp.: Raw materials used …………………… 12,000...

The following information describes actual production activities of the Oliver Corp.: Raw materials used …………………… 12,000 lbs. at $2.50 per lb. Factory payroll ………………………... 3,500 hours for a total of $45,500 15,000 units were completed during the year Budgeted standards for each unit produced: 1 lb. of raw material at $2.25 per lb. 15 minutes of direct labor at $12.50 per hour Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Solutions

Expert Solution

  • Requirements asked

Material Price Variance

$                                                     3,000.00

Unfavourable-U

Material Quantity Variance

$                                                     6,750.00

Favourable-F

Labor Rate Variance

$                                                     1,750.00

Unfavourable-U

Labour Efficiency Variance

$                                                     3,125.00

Favourable-F

  • Workings

Material Price Variance

(

Standard Rate

-

Actual Rate

)

x

Actual Quantity

(

$                               2.25

-

$                       2.50

)

x

12000

-3000

Variance

$              3,000.00

Unfavourable-U

Material Quantity Variance

(

Standard Quantity

-

Actual Quantity

)

x

Standard Rate

(

15000

-

12000

)

x

$                           2.25

6750

Variance

$              6,750.00

Favourable-F

Labor Rate Variance

(

Standard Rate

-

Actual Rate

)

x

Actual Labor Hours

(

$                             12.50

-

$                    13.00

)

x

3500

-1750

Variance

$              1,750.00

Unfavourable-U

Labour Efficiency Variance

(

Standard Hours

-

Actual Hours

)

x

Standard Rate

(

3750

-

3500

)

x

$                        12.50

3125

Variance

$              3,125.00

Favourable-F


Related Solutions

The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used...
The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used 19,000 lbs. at $4.25 per lb. Actual direct labor used 5,560 hours for a total of $107,308 Actual units produced 30,090 Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.20 per pound and 10 minutes of direct labor at $20.40 per hour. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH...
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used 30,000...
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used 30,000 lbs. at $5.15 per lb. Actual direct labor used 9,150 hours for a total of $186,660 Actual units produced 54,120 Budgeted standards for each unit produced are 0.50 pound of direct material at $5.10 per pound and 10 minutes of direct labor at $21.40 per hour. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ =...
Raw materials purchased on account, $210,000. Raw materials used in production, $191,000 ($152,800 direct materials and...
Raw materials purchased on account, $210,000. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $104,000. Other manufacturing overhead costs accrued during October, $130,000. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,300 machine-hours were used in October. Jobs costing $513,000 according to their job cost sheets were...
Required: Calculate the cost of raw materials used in production.
                                               Costs Raw materials purchased $ 75,000 Direct Labor   55,000 Indirect labor     33,000 Factory equipment maintenance and depreciation     15,000 Factory rent     36,000 Factory supplies       6,000 Selling & administrative expenses 100,000 Inventories Beginning Balance Ending Balance Raw Materials $ 5,000 $20,000 Work in Process 25,000 30,000 Finished Goods 20,000 35,000 Required:   Calculate the cost of raw materials used in production. Required:  Calculate the cost of goods manufactured Calculate the cost of goods sold. Required:  Calculate the prime costs   Calculate the conversion costs.
Using the following information, compute the direct materials used. Raw materials inventory, January 1                          $&
Using the following information, compute the direct materials used. Raw materials inventory, January 1                          $     20,000 Raw materials inventory, December 31                          40,000 Work in process, January 1                                                    18,000 Work in process, December 31                                            12,000 Finished goods, January 1                                                      40,000 Finished goods, December 31                                              32,000 Raw materials purchases                                                 1,400,000 Direct labor                                                                                 560,000 Factory utilities                                                                         150,000 Indirect labor                                                                                50,000 Factory depreciation                                                              400,000 Operating expenses                                                                420,000 a. $1,460,000. b. $1,420,000. c. $1,400,000. d. $1,380,000. Why it's D ????
Using the following data for Caro Corporation how many raw materials were used in production this...
Using the following data for Caro Corporation how many raw materials were used in production this year? Sales $745,000 Direct Labor Cost $120,000 Raw material purchases $362,000 Selling expense $63,000 Administrative expenses $98200 Manufacturing overhead applied to work in process $237,000 Actual Manufacturing overhead costs $241,100 Inventories beginning of year End of year Raw materials $9,000 $8,000 work in process $23,000 $15,000 finished goods $38,000 $35,000 a. $345,000 b. $379,000 c. $363,000 d. $362,000 Using the following data for Xylo...
The following information describes Lansur's Corp. activities with Bank SWN during September 2019: 1. The cash...
The following information describes Lansur's Corp. activities with Bank SWN during September 2019: 1. The cash account balance at the bank according to the ledger as of September 1, 2019 is Rp. 16,245,180. 2. The company's cash receipts during the month of September according to the cash receipts journal were Rp 45,634,920, while checks withdrawn during the month totaled Rp 52,911,340. 3. Bank statements at the end of September 2019 show a balance of Rp 6,652,020 4. A bank statement...
1) When more materials are used than allowed for actual production this will result in an...
1) When more materials are used than allowed for actual production this will result in an unfavourable purchase price variance. TRUE or FALSE 2) MNO produces a single product. The standard production requirement for each unit requires 2 kilograms of a single material at a standard cost of $5 per kilogram. During the last year, MNO purchased 10,000 kilograms of materials at total cost of $52,000. Also last year, MNO manufactured 3,000 units of product using a total of 7,000...
Variances Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg)...
Variances Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg) 400 700 ? Material cost ($) 8,000 See purchases ? Direct Labour (hours) 35,000 46,102 ? Direct Labour ($) 385,000 507,080 ? Variable Overhead ($) 350,000 419,161 ? Fixed Overhead ($) 160,000 161,000 ?             Other Information Overhead is Allocated on Direct Labour Hours During the year, 800 kg of materials were purchased for $5,000 Beginning Inventory: none Ending Inventory:     100kg Required: Calculate the...
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg) 400...
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg) 400 700 ? Material cost ($) 8,000 See purchases ? Direct Labour (hours) 35,000 46,102 ? Direct Labour ($) 385,000 507,080 ? Variable Overhead ($) 350,000 419,161 ? Fixed Overhead ($) 160,000 161,000 ?             Other Information Overhead is Allocated on Direct Labour Hours During the year, 800 kg of materials were purchased for $5,000 Beginning Inventory: none Ending Inventory:     100kg Required: Calculate the flexible...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT