Question
In: Accounting
J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game...
J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console follows:
| Direct materials, ? kilograms at $6 per kilogram | $ | ? | per game |
| Direct labor, 0.75 hours at ? per hour | ? | per game | |
| Overhead, 0.75 hours at ? per hour | ? | per game | |
| Total costs | $ | 39 | per game |
Assume that the following data appeared in J&W’s records at the end of the past month:
| Actual production | 44,000 | units | |
| Actual sales | 41,000 | units | |
| Materials (120,500 kilograms) | $ | 188,700 | |
| Materials price variance | 47,000 | U | |
| Materials efficiency variance | 23,400 | U | |
| Direct labor price variance | 18,600 | U | |
| Direct labor (31,000 hours) | 533,200 | ||
| Underapplied overhead (total) | 18,800 | U | |
There are no materials inventories.
Required:
a. Complete the standard cost sheet for a game console given below. Compute the direct labor efficiency variance. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
Direct Materials ____ Kilograms at $6 per kilogram _____ per game
Direct labor, .75 hours at_____ per hour_____ per game
Overhead, .75 hours at_______ per hour _____ per game
Direct Labor:
Effiencey _____ _____
Solutions
Expert Solution
|
1)Material efficiency variance =SR[SQ-AQ] |
|
-23400 = $6[SQ-120500] |
|
-3900=SQ-120500 |
|
SQ=116600 Kg |
|
Standard quantity per unit produced = 116600/44000 = 2.65 Kg/ game |
|
standard material cost per unit = $6* 2.65 kg=$15.9/game |
|
2)Labor price variance = Actual Hour ( SR-AR) |
|
-18600 = 31000 [SR -$17.20] |
|
-0.6=SR-17.20 |
|
SR=$16.60 |
|
AR=$17.20 |
|
standard Labor cost per Unit= $16.60*.75 =$ 12.45 per game |
|
3)overhead cost per game =Total cost per game -material cost per game -labor cost per game |
|
= $39-$15.90-$12.45=$10.65 |
|
Overhead cost per hour = $10.65/0.75 = $ 14.90 |
|
a)Standard Cost Sheet |
|
|
Direct material 2.65 kg at $ 6 |
$15.90 |
|
Direct labor 0.75 hours at $16.60 |
$ 12.45 |
|
Overhead |
$ 10.65 |
|
Total cost |
$39 |
|
Labor efficiency variance =SR[SH-AH] |
| = 16.60 (33000-31000) = $ 33200 |
|
= $17.60 [(58000*0.75)- 41000] |
|
= $44000 F |
ekkarill92 answered 1 year agoRelated Solutions
J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game...
J&W Corporation manufactures a new electronic game console.
The current standard cost sheet for a game console follows.
Direct materials, ? kilograms at $6 per kilogram
$
?
per game
Direct labor, 0.75 hours at ? per hour
?
per game
Overhead, 0.75 hours at ? per hour
?
per game
Total costs
$
36
per game
Assume that the following data appeared in J&W’s records at
the end of the past month.
Actual production
47,000
units
Actual sales
44,000...
J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game...
J&W Corporation manufactures a new electronic game console.
The current standard cost sheet for a game console follows:
Direct materials, ? kilograms at $6 per kilogram
$
?
per game
Direct labor, 0.75 hours at ? per hour
?
per game
Overhead, 0.75 hours at ? per hour
?
per game
Total costs
$
42
per game
Assume that the following data appeared in J&W’s records at
the end of the past month:
Actual production
46,000
units
Actual sales
43,000...
J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game...
J&W Corporation manufactures a new electronic game console.
The current standard cost sheet for a game console follows:
Direct materials, ?
kilograms at $6 per kilogram
$
?
per game
Direct labor, 0.75 hours at ?
per hour
?
per game
Overhead, 0.75 hours at ? per
hour
?
per game
Total costs
$
39
per game
Assume that the following data appeared in J&W’s records at
the end of the past month:
Actual
production
58,000
units
Actual sales
55,000...
Mario Company sells two different game consoles--a Premium console and a Standard console. The Premium console...
Mario Company sells two different game consoles--a Premium
console and a Standard console. The Premium console sells for $175
and has variable costs of $125. The Standard console sells for $100
and has variable costs of $25. Total fixed costs are $105,750.
A: Mario sells one premium console for every THREE standard
consoles sold. What is the breakeven point in total units?
B: How many units of PREMIUM will be sold at the breakeven
point?
C: How many units of...
Classifications on Balance Sheet The current balance sheet of J. J. Arvesen Company contains the following...
Classifications on Balance Sheet
The current balance sheet of J. J. Arvesen Company contains the
following major sections:
Current assets
Long-term investments
Property, plant, and equipment
Intangible assets
Other assets
Current liabilities
Long-term liabilities
Contributed capital
Retained earnings
Accumulated other comprehensive income
The following is a list of accounts in random order. Using the
letters A through J, indicate in which section each account would
most likely be classified. If an account does not belong under one
of the sections...
Tabulation Corporation manufactures and sells two types of electronic calculators: EL-520 W and EL-620 T. The...
Tabulation Corporation manufactures
and sells two types of electronic calculators: EL-520 W and EL-620
T. The following data was gathered from last month’s
activities:
EL-520
W EL-620
T
Sales in
units 5,000 3,000
Selling price per
unit $50 $100
Variable production costs per
unit $10 $26
Traceable fixed production
costs $100,000 $150,000
Variable selling expenses per
unit $5 $6
Traceable fixed selling
expenses $5,000 $7,500
Allocated division administrative
expenses $50,000 $60,000
Required:
Prepare a segmented income statement in the contribution format
for last month, showing both "Amount" and "Percent" columns for the
company as a...
Buil Corporation manufactures a single product. The standard cost per unit of the product is as...
Buil Corporation manufactures a single product. The standard
cost per unit of the product is as follows.
Direct materials—2 pounds of plastic at $6 per pound $12
Direct labour—2 hours at $13 per hour 26
Variable manufacturing overhead 7
Fixed manufacturing overhead 5
______
Total standard cost per unit $50
The master manufacturing overhead budget for the month based on
the normal productive capacity of 20,000 direct labour hours
(10,000 units) shows total variable costs of $70,000 ($3.50 per
labour...
Coop Corporation Standards and Variances Coop Corporation manufactures a single product. The standard cost per unit...
Coop Corporation Standards and Variances
Coop Corporation manufactures a single product. The standard cost
per unit of
product is shown below:
Direct materials, 1 pount plastic at $7 per pound
$ 7.00
Direct labor, 1.6 hours at $12 per hour
19.20
Variable manufacturing overhead
12.00
Fixed manufacturing overhead
4.00
Total standard cost per unit
$ 42.20
The predetermined manufacturing overhead rate is $10 per direct
labor hour [($12.00 + $4.00)/1.6].
It was computed from a master manufacturing...
J&W’s Fabrication Shop (J&W) sells fabricated parts to General Motors Corporation. General Motors normally pays on...
J&W’s Fabrication
Shop (J&W) sells fabricated parts to General Motors
Corporation. General Motors normally pays on a net 30 day basis
(within 30 days of the delivery date). But when the economic
slowdown occurred, GM started paying net 120 days. Based on the
last shipment from two weeks ago, GM owes J&W 320 thousand
dollars. J&W’s cash flow is thin and they need to
borrow money to meet payroll for ninety days. Regina has been
approached by J&W who has...
Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor...
Aquafloat Corporation manufactures rafts for use in swimming
pools. The standard cost for material and labor is $89.20 per raft.
This includes 8 kilograms of direct material at a standard cost of
$5.00 per kilogram, and 6 hours of direct labor at $8.20 per hour.
The following data pertain to November: Work-in-process inventory
on November 1: none. Work-in-process inventory on November 30: 800
units (75 percent complete as to labor; material is issued at the
beginning of processing). Units completed:...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Part A. Outline and explain all the VARIABLES and FACTORS that determine valuation and valuation analysis...
- Study the file polygon.h. It contains the header file for a class of regular polygons. Implement...
- what challenges can myths and stereotypes create for american indians?
- Date accuracy is very important because dates are used for discounts, payment terms and many reports....
- How many milliliters of concentrated hydrochloric acid solution (36.0% HCl by mass, density = 1.18 g/mL)...
- How does the rotating membership of the FOMC work? Why does the president of New York's...
- A gym owner is considering opening a location on the other side of town. The new...
ADVERTISEMENT