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In: Accounting
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 = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
(1) Compute the direct materials price and
quantity variances and classify each as favorable or unfavorable.
(Indicate the effect of each variance by selecting for
favorable, unfavorable, and no variance. Round "Cost per unit"
answers to 2 decimal places.)
(2) Compute the direct labor rate and efficiency
variances and classify each as favorable or unfavorable.
(Indicate the effect of each variance by selecting for
favorable, unfavorable, and no variance.)
Solutions
Thank You
ekkarill92 answered 1 year agoRelated 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 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...
Manufacturing or production costs are classified into three basic elements: Direct Materials, Direct Labor, and Manufacturing...
Manufacturing or production costs are classified into three
basic elements: Direct Materials, Direct Labor, and Manufacturing
Overhead.
Group of answer choices
True
False
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Question 22 pts
The wages of the factory’s janitorial staff are considered
manufacturing overhead costs.
Group of answer choices
True
False
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Question 32 pts
The formula for break-even units is Fixed Expenses/Contribution
Margin Ratio.
Group of answer choices
True
False
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Question 42 pts
Direct labor would be considered...
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
$...
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 2,200
automobile tires:
Actual:
56,600 lbs. at $1.95 per lb.
Standard:
54,900 lbs. at $1.90 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
$...
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 2,400 automobile tires:
Actual:
57,900 lbs. at $1.7 per lb.
Standard:
56,700 lbs. at $1.75 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
$...
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 2,500 automobile tires:
Actual:
48,200 lbs. at $1.75 per lb.
Standard:
46,800 lbs. at $1.7 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
$...
Compute the total manufacturing cost with the following information for the month. Direct materials used 53,750...
Compute the total manufacturing cost with the following
information for the month.
Direct materials used
53,750
Direct labor used
12,000
Factory supervisor salary
8,000
Salesperson commissions
6,200
Depreciation expense—Factory building
3,500
Depreciation expense—Delivery equipment
2,200
Indirect materials
1,250
Total manufacturing costs
1) Direct Materials Variances The following data relate to the direct materials cost for the production...
1)
Direct Materials Variances
The following data relate to the direct materials cost for the
production of 2,300 automobile tires:
Actual:
61,300 lbs. at $1.85 per lb.
Standard:
63,100 lbs. at $1.8 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
$
Unfavorable
Direct Materials Quantity...
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...
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