Question

In: Accounting

Genent​ Industries, Inc.​ (GII), developed standard costs for direct material and direct labor. In​ 2017, GII...

Genent​ Industries, Inc.​ (GII), developed standard costs for direct material and direct labor. In​ 2017, GII estimated the following standard costs for one of their major​ products, the 30minus−gallon heavyminus−duty plastic container. Budgeted quantity Budgeted price Direct materials 0.10.1 pounds $ 30$30 per pound Direct labor 0.30.3 hours $ 16$16 per hour During​ July, GII produced and sold 4 comma 0004,000 containers using 700700 pounds of direct materials at an average cost per pound of $ 29$29 and 1 comma 2801,280 direct manufacturing labor hours at an average wage of $ 16.25$16.25 per hour. The direct manufacturing labor flexibleminus−budget variance during July is​ ________.

Solutions

Expert Solution

direct manufacturing labor flexible−budget variance during July is​ $1,600 Unfavorable

Working

Labor Spending Variance
( Standard Cost - Actual Cost )
( $         19,200.00 - $             20,800.00 )
-1600
Variance $                1,600.00 Unfavourable-U

.

Actual DATA for 4000 Units
Quantity (AQ) Rate (AR) Actual Cost
Direct labor 1280 $         16.25 $          20,800.00

.

Standard DATA for 4000 Units
Quantity (SQ) Rate (SR) Standard Cost
[A] [B] [A x B]
Direct labor ( 0.3 Hour x 4000 Units)=1200 Hour $                16.00 $            19,200.00

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Heavy​ Products, Inc. developed standard costs for direct material and direct labor. In​ 2017, AII estimated...
Heavy​ Products, Inc. developed standard costs for direct material and direct labor. In​ 2017, AII estimated the following standard costs for one of their major​ products, the 10minus−gallon plastic container. Budgeted quantity Budgeted price Direct materials 0.80.8 pounds $ 60$60 per pound Direct labor 0.20.2 hours $ 10$10 per hour During​ June, Heavy Products produced and sold 19 comma 00019,000 containers using 20 comma 00020,000 pounds of direct materials at an average cost per pound of $ 66$66 and 15...
Inaya Valley Orchards, Inc. (IVO), developed standard costs for direct material and direct labor. In 2011,...
Inaya Valley Orchards, Inc. (IVO), developed standard costs for direct material and direct labor. In 2011, IVO estimated the following standard costs for one of their most well loved products, the IVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.    Budgeted quantity   Budgeted price    Direct materials   1.50 kilograms   $7.25 per kilogram    Direct labor   0.25 hours  ...
Material and Labor Variances The following actual and standard cost data for direct material and direct...
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual Costs Standard Costs Direct material 4,200 lbs. @ $4.90 4,000 lbs. @ $5.20 Direct labor 5,700 hrs. @ $9.30 6,000 hrs. @ $9.50 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials...
Actual Direct labor costs and Actual Direct material costs are written [entered, or put] on A...
Actual Direct labor costs and Actual Direct material costs are written [entered, or put] on A job-order sheet. Estimated, not actual, manufacturing overhead costs are entered on a Job-order Sheet. A. Explain why estimated costs are used. B. Explain how the amount of manufacturing Overhead costs entered on a particular job-order cost sheet is determined.
The following actual and standard cost data for direct material and direct labor relate to the...
The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual Costs Standard Costs Direct material 21,450 lbs. @ $5.30 22,000 lbs. @ $5.10 Direct labor 34,100 hrs. @ $8.40 33,000 hrs. @ $8.70 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $Answer...
7) If direct labor and direct material costs increase by $1 each, contribution margin ________. A)...
7) If direct labor and direct material costs increase by $1 each, contribution margin ________. A) increases by $20,000 B) increases by $14,000 C) decreases by $24,000 D) decreases by $14,000 Answer the following questions using the information below: Alex Furniture sells a table for $850. His fixed costs are $25,000, while his variable costs are $500 per table. He currently plans to sell 175 tables this month. 8) What is the budgeted revenue for the month assuming that Alex...
Data on Gantry Company's direct labor costs are given below: Standard direct-labor hours 50,000 Actual direct-labor...
Data on Gantry Company's direct labor costs are given below: Standard direct-labor hours 50,000 Actual direct-labor hours 49,000 Direct-labor efficiency variance-favorable $ 5,200 Direct-labor rate variance-favorable $ 9,800 Total direct labor payroll $ 245,000 What was Gantry's actual direct labor rate?
Determine whether each of the following costs should be classified as: Direct material Direct Labor Manufacturing...
Determine whether each of the following costs should be classified as: Direct material Direct Labor Manufacturing Overhead Period Cost Oils, glues, resins Answer 1 The factory janitor's salary Answer 2 Frames and tires used in manufacturing bicycles Answer 3 Wages paid to the workers assembling the bicycles for sale Answer 4 Depreciation of office computer system Answer 5 Wood purchased to manufacture tables made of wood. Answer 6 Depreciation on factory equipment Answer 7 The company spends $35,000 a year...
Mohkam’s incurred the following costs during 2019. Direct material used .......................................................................................... Rs.87,000,000 Direct labor .................................................................
Mohkam’s incurred the following costs during 2019. Direct material used .......................................................................................... Rs.87,000,000 Direct labor ....................................................................................................... 162,000,000 Manufacturing overhead applied ........................................................................ 90,000,000 During 20x2, products costing $600,000 were finished, and products costing $66,000,000 were sold on account for $97,500,000. There were no purchases of raw material during the year. The beginning balances in the firm’s inventory accounts are as follows: Raw material .................................................................................................... $113,500,000 Work in process ................................................................................................ 9,000,000 Finished goods ................................................................................................. 15,000,000 Required: 1. Prepare T-accounts to show the flow...
Cato Band Uniforms uses a standard costing system. The standard material and labor costs for producing...
Cato Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards × $12.00) $10.80 Direct labor (1.20 hours × $14.10) $16.92 During May, the company produced 3,800 band hats; 3,840 yards of material were purchased for $41,472, and 3,050 yards of material were used in production. Also during May, 4,460 direct labor hours were worked at a cost of $53,520. Calculate material price and quantity...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT