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In: Accounting
Question 01 Stench Foods Company uses a standard cost system to collect costs related to the...
Question 01 Stench Foods Company uses a standard cost system to
collect costs related to the production of its garlic flavored
yogurt. The garlic (materials) standards for each container of
yogurt produced are 0.8 ounces of crushed garlic at a standard cost
of $2.30 per ounce. During the month of June, Stench purchased
75,000 ounces of crushed garlic at a total cost of $171,000. Stench
used 64,000 of these ounces to produce 71,500 containers of yogurt.
1. What is Stench’s materials price variance for the month of June?
2. What is Stench’s materials quantity variance for the month of
June?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Your Corporation uses a standard cost system to collect costs related to the production. The labor...
Your Corporation uses a standard cost system to collect costs
related to the production. The labor standards for each unit are
1.2 hours at a standard cost of $18 per hour. During the month,
employees work 34,000 hours in the production of 30,000 units. The
total labor cost was $649,400. What is the efficiency (quantity)
variance for the month?
$37,400 unfavorable
$37,400 favorable
$36,000 unfavorable
$36,000 favorable
The following is information related to X Company, a company that uses a standard cost system:...
The following is information related to X Company, a company
that uses a standard cost system:
Standard cost card for 1 unit of Product A:
Direct materials – Raw Material A (1 kilogram @ $
20/kg.)
$ 20
Direct materials – Raw Material B (1 kilogram @$
10/kg.) $ 10
Direct labour (1 hour @
$15/hr.)
$ 15
Variable overhead (1 hour @
$
5/hr.)
$ 5
Fixed overhead (1 hour @ $
10/hr.)
$ 10
Total budgeted fixed...
The following is information related to X Company, a company that uses a standard cost system:...
The following is information related to X Company, a company
that uses a standard cost system:
Standard cost card for 1 unit of Product A:
Direct materials – Raw Material A (1 kilogram @ $
20/kg.)
$ 20
Direct materials – Raw Material B (1 kilogram @$
10/kg.) $ 10
Direct labour (1 hour @
$15/hr.)
$ 15
Variable overhead (1 hour @
$
5/hr.)
$ 5
Fixed overhead (1 hour @ $
10/hr.)
$ 10
Total budgeted fixed...
West Manufacturing Company uses a standard cost system in its accounting records. The standard costs for...
West Manufacturing Company uses a standard cost system in its
accounting records. The standard costs for its one product are as
follows:
Materials
8 pounds at $1.00 = $ 8.00
Direct
labor
1.2 hours at $14.00 = 16.80
Variable overhead 1.2 direct-labor hours at
$4.00 = 4.80
Fixed overhead 1.2
direct-labor hours at $6.00 =
7.20
Total standard
cost
$36.80
The standard costs per unit are based on normal capacity of 3,600
direct-labor...
Coming Home Corporation uses a weighted-average process costing system to collect costs related to production. The...
Coming Home Corporation uses a weighted-average process costing
system to collect costs related to production. The following
selected information relates to production for October:
Materials
Conversion
Units completed and transferred out
49,000
49,000
Equivalent units: work in process, October 31
11,000
5,000
Total equivalent units
60,000
54,000
Materials
Conversion
Costs in work in process on October 1
$
9,000
$
5,400
Costs added to production during October
243,000
513,000
Total cost
$
252,000
$
518,400
All materials at Coming Home...
Bettie Corporation uses a weighted-average process costing system to collect costs related to production. The following...
Bettie Corporation uses a weighted-average process costing
system to collect costs related to production. The following
selected information relates to production for October:
Materials
Conversion
Units completed and transferred
out
50,000
50,000
Equivalent units: work in
process, October 31
10,000
4,000
Total equivalent units
60,000
54,000
Materials
Conversion
Costs in work in process on
October 1
$
9,000
$
5,400
Costs added to production during
October
243,000
513,000
Total cost
$
252,000
$
518,400
All materials at Bettie are added...
Pristine Painting Services uses a job order cost system to collect the costs of its home...
Pristine Painting Services uses a job order cost system to
collect the costs of its home painting business. Each customer’s
house is treated as a separate job. Overhead is applied to each job
based on the number of painting hours required for each house.
Listed below are the data for the current year:
Estimated
overhead
$780,000
Actual
overhead
$772,450
Estimated painting hours
39,000
Actual painting
hours
38,750
The company uses Operating Overhead in...
Clothing manufactures embroidered jackets. The company uses a standard cost system to control manufacturing costs. The...
Clothing manufactures embroidered jackets. The company uses a
standard cost system to control manufacturing costs. The following
data represent the standard unit cost of a jacket:
Direct materials (
3.0
sq. ft x
$4.10
per sq. ft.). . . .
$12.30
Direct labor
(
2.0
hours x
$9.30
per hour). . . . .
18.60
Manufacturing overhead:
Variable
(
2.0
hours x
$0.66
per hour). . . . . . . . . .
$1.32
Fixed
(
2.0
hours x...
Ferry Chemical uses a standard cost system to account for the costs of its production of...
Ferry Chemical uses a standard cost system to account for the
costs of its production of Chemical X. Standards are 3.0 gallons of
materials at $121 per gallon and 26 hours of labor at a standard
wage rate of $28. During September, Ferry Chemical produced 3,250
gallons of Chemical X. Ferry Chemical purchased and used totaled
3,730 gallons at a total cost of $455,180. Payroll totaled $318,730
for 26,230 hours worked.
a. Calculate the direct materials price variance.
(Do not...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a...
Wallis Company manufactures only one product and uses a standard
cost system. The company uses a predetermined plantwide overhead
rate that relies on direct labor-hours as the allocation base. All
of the company's manufacturing overhead costs are fixed—it does not
incur any variable manufacturing overhead costs. The predetermined
overhead rate is based on a cost formula that estimated $2,892,000
of fixed manufacturing overhead for an estimated allocation base of
289,200 direct labor-hours. Wallis does not maintain any beginning
or ending...
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