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
$
?
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Direct labor, 0.75 hours at ? per hour
?
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Overhead, 0.75 hours at ? per hour
?
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Total costs
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Direct labor, 0.75 hours at ? per hour
?
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Overhead, 0.75 hours at ? per hour
?
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