Question
In: Accounting
A manufactured product has the following information for June.
A manufactured product has the following information for
June.
| Standard | Actual | |||
| Direct materials | (6 lbs. @ $8 per lb.) | 48,500 | lbs. @ $8.10 per lb. | |
| Direct labor | (2 hrs. @ $16 per hr.) | 15,700 | hrs. @ $16.50 per hr. | |
| Overhead | (2 hrs. @ $12 per hr.) | $ | 198,000 | |
| Units manufactured | 8,000 | |||
1. Compute the standard cost per unit. 2. Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable. |
Solutions
Expert Solution
| Data for calculation of Variance | |||||||||
| Standard | Standard Cost for 8000 Units | Actual for 8000 Units | |||||||
| Units | Rate | Total | Units | Rate | Total | Units | Rate | Total | |
| Material | 6 | 8.00 | 48.00 | 48,000.00 | 8.00 | 384,000.00 | 48,500.00 | 8.10 | 392,850.00 |
| Labour | 2 | 16.00 | 32.00 | 16,000.00 | 16.00 | 256,000.00 | 15,700.00 | 16.50 | 259,050.00 |
| Ovehead | 2 | 12.00 | 24.00 | 16,000.00 | 12.00 | 192,000.00 | 15,700.00 | 12.61 | 198,000.00 |
1.
| Standard Cost for 8000 Units | ||
| Units | Rate | Total |
| 48,000.00 | 8.00 | 384,000.00 |
| 16,000.00 | 16.00 | 256,000.00 |
| 16,000.00 | 12.00 | 192,000.00 |
2.
| Material price Variance= | (SP-AP)*AQ | (8-8.10)*48500 | (4,850) | Unfavourable |
| Material Quantity Variance= | (SQ-AQ)*Sp | (48000-48500)*8 | (4,000) | Unfavourable |
| Labour Rate Variance | (SR-AR)*AH | (16-16.50)*15700 | (7,850) | Unfavourable |
| Labour Quantity Variance | (SH-AH)*SR | (16000-15700)*16 | 4,800 | Favourable |
| Variable Overhead Rate Variance | (SR-AR)*AH | (12-12.61)*15700 | (9,577) | Unfavourable |
| Variable Overhead Quantity Variance | (SH-AH)*SR | (16000-15700)*12 | 3,600 | Favourable |
Dear Student,
Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.
ekkarill92 answered 2 years agoRelated Solutions
A manufactured product has the following information for June.
[The following information applies to the questions
displayed below.]A manufactured product has the following information for
June.StandardActualDirect materials6 lbs. @ $7 per lb.49,000lbs. @ $7.20 per lb.Direct labor3 hrs. @ $16 per hr.24,000hrs. @ $16.50 per hr.Overhead3 hrs. @ $12 per hr.$298,000Units manufactured8,100(1) Compute the standard cost per unit.(2) Compute the total cost variance for June.
A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. @...
A manufactured product has the following information for June.
Standard Actual Direct materials (5 lbs. @ $9 per lb.) 40,000 lbs.
@ $9.20 per lb. Direct labor (3 hrs. @ $16 per hr.) 23,400 hrs. @
$16.60 per hr. Overhead (3 hrs. @ $13 per hr.) $ 315,100 Units
manufactured 7,900 Compute the direct materials price variance and
the direct materials quantity variance. Indicate whether each
variance is favorable or unfavorable.
A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. @...
A manufactured product has the following information for June.
Standard Actual Direct materials (5 lbs. @ $7 per lb.) 35,400 lbs.
@ $7.20 per lb. Direct labor (2 hrs. @ $16 per hr.) 13,800 hrs. @
$16.50 per hr. Overhead (2 hrs. @ $13 per hr.) $ 188,500 Units
manufactured 7,000 Exercise 23-8 Standard unit cost; total cost
variance LO C2 (1) Compute the standard cost per unit.
A manufactured product has the following information for August. Standard Actual Direct materials 2 lbs. per...
A manufactured product
has the following information for August.
Standard
Actual
Direct materials
2
lbs. per unit @ $3.50 per lb.
Direct
labor
0.5 hours per
unit @ $24 per hour
Overhead
$24 per direct
labor hour
Units
manufactured
12,400
Total
manufacturing costs
$
380,400
(1) Compute the standard cost per unit.
(2) Compute the total budgeted cost for production
in August.
(3) Compute the total cost variance for August.
(Indicate the effect of each variance by selecting for
favorable,...
QUESTION ONE The following information relates to the only product manufactured and sold by Namwela limited....
QUESTION ONE
The following information relates to the only product manufactured
and sold by Namwela limited.
K per Unit
Selling price 50
Direct Material cost 14
Direct labour cost 16
Variable production overhead 10
Fixed production overhead 1.80
Variable sales and marketing overhead 1.00
The following level of activity took place over the first two years
of the product’s life:
Sales ( units) production ( units)
Year 1 13,000 14,000
Year 2 12,500 11,500
ADDITIONAL INFORMATION
1. Budgeted fixed production...
CDE Ltd has provided you with the following data relating to the product manufactured by his...
CDE Ltd has provided you with the following data relating to the
product manufactured by his factory: Selling price per unit $ 100
Variable manufacturing costs per unit 48 Fixed manufacturing costs
per annum 250,000 Variable marketing, distribution and
administration costs per unit 16 Fixed non-manufacturing costs per
annum 182,000.
CDE Ltd has spare capacity and receives a special order from an
interstate retailer for 1,000 units at a price of $80 per unit.
Briefly explain why CDE Ltd should...
. Below is information about actual sales of a product for June and July and the...
. Below is information about actual sales of a product for June
and July and the expected sales of August, September and October.
Selling price for the product is $100.
June $230,000, July $240,000, August $220,000, September
$280,000 and October $310,000. November $340,000
Costs of Goods Sold equals to 70% of Sales. The end of inventory
policy is 40% of the next month of quantity sales.
Inventory is purchased on continuous basis during the month. 60%
of inventory costs are...
The following information is available for the Savvy Company for the month of June. On June...
The following information is available for the Savvy Company for
the month of June. On June 30, after all transactions have been
recorded, the balance in the company's Cash account has a balance
of $17,202. The company's bank statement shows a balance on June 30
of $19,279. Outstanding checks at June 30 total $2,984. The bank
collected $770 on a note receivable that is not yet recorded by
Savvy Company. A $67 NSF check from a customer, J. Maroon is...
Which of the following is an example of a value-added cost to a manufactured product? A....
Which of the following is an example of a value-added cost to a
manufactured product?
A. the cost of storing inventory
B. the cost of handling inventory
C. the depreciation expense of robots that assemble the
product
D. changing the setup of production-line operations
Cost of Goods Sold, Cost of Goods Manufactured Gauntlet Company has the following information for January:...
Cost of Goods Sold, Cost of Goods Manufactured Gauntlet Company
has the following information for January: Cost of direct materials
used in production $ 37,000 Direct labor 46,000 Factory overhead
20,000 Work in process inventory, January 1 22,000 Work in process
inventory, January 31 30,000 Finished goods inventory, January 1
24,000 Finished goods inventory, January 31 18,000 a. For January,
determine the cost of goods manufactured. $ b. For January,
determine the cost of goods sold. $
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Use the bond term's below to answer the question Maturity 7 years Coupon Rate 4% Face...
- What experience have you had with Organization Development or with Change Management? Describe the organization, the...
- 1. Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds...
- Given an array of positive integers a, your task is to calculate the sum of every...
- Define “culture.” Software is defined by the Merriam-Webster Dictionary as "the programs that run on a...
- In humans, hypotrichosis (sparse body hair) is a rare autosomal recessive condition. Let h = hypotrichosis...
- Increase all of the listing prices by 5% for all listings under $500,000 and 10% for...
ADVERTISEMENT