Question

In: Accounting

Benson Company manufactures molded candles that are finished by hand. The company developed the following standards...

Benson Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles:

Amount of direct materials per candle 1.70 pounds
Price of direct materials per pound $ 0.60
Quantity of labor per unit 1.10 hours
Price of direct labor per hour $ 8.00 /hour
Total budgeted fixed overhead $ 159,100

During 2017, Benson planned to produce 37,000 drip candles. Production lagged behind expectations, and it actually produced only 30,000 drip candles. At year-end, direct materials purchased and used amounted to 52,500 pounds at a unit price of $0.56 per pound. Direct labor costs were actually $7.70 per hour and 35,500 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $135,000. Overhead is applied to products using a predetermined overhead rate based on estimated units.

Required

  1. a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle.

  2. c.&d. Compute the actual cost per candle for direct materials, direct labor, overhead and also the total actual cost per candle.

  3. e. Compute the price and usage variances for direct materials and direct labor.

  4. f. Compute the fixed cost spending and volume variances.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Benson Company manufactures molded candles that are finished by hand. The company developed the following standards...
Benson Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles: Amount of direct materials per candle 1.30 pounds Price of direct materials per pound $ 0.60 Quantity of labor per unit 0.80 hours Price of direct labor per hour $ 9.00 /hour Total budgeted fixed overhead $ 107,100 During 2017, Benson planned to produce 21,000 drip candles. Production lagged behind expectations, and it actually produced only 15,000...
Spiro Company manufactures molded candles that are finished by hand. The company developed the following standards...
Spiro Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles: Amount of direct materials per candle: 1.6 pounds Price of direct materials per pound: $1.5 Quantity of labor per unit: 1 hour Price of direct labor per hour: $20/hour Total budgeted fixed overhead: $390,000 During 2017, Spiro planned to produce 30,000 drip candles. Production lagged behind expectations, and it actually produced only 24,000 drip candles. At year-end,...
The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for...
The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing​ labor: Direct materials: 10 lb. at $4.60 per lb. $46.00 Direct manufacturing labor: 0.5 hour at $30 per hour 15.00 The number of finished units budgeted for January 2017 was 9,650​; 9,600 units were actually produced. Actual results in January 20172017 were as​ follows: Direct materials: 94,500 lb. used Direct manufacturing labor: 4,600 hours $144,900 Assume that there was...
29) The Tulip Company makes mugs for which the following standards have been developed:                            &nbs
29) The Tulip Company makes mugs for which the following standards have been developed:                                Standard Inputs Expected                   Standard Price Expected                                  For Each Unit of Output                              Per Unit of Input Direct Materials                                 5 ounces                                     $2 per ounce Direct Labor                                     2.5 hours                                       $8 per hour Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per...
Biscuit Company has developed the following standards for one of its products. Direct labor hours is...
Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. Direct materials: 10 pounds × $3 per pound Direct labor: 2.5 hours × $8 per hour Variable manufacturing overhead: 2.5 hours × $2 per hour The following activity occurred during the month of June: Materials purchased: 125,000 pounds at $2.60 per pound Materials used: 110,000 pounds Units produced: 10,000 units Direct labor: 24,000 hours at...
IOL Ltd manufactures ceramic lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour:
  IOL Ltd manufactures ceramic lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour: Direct materials: 10 kg at $4.50 per kg $45.00 Direct manufacturing labour: 0.5 hours at $30 per hour 15.00 The number of finished units budgeted for January was 5 000; 4 550 units were actually produced. Actual results in January were: Direct materials: 45 055 kg used   Direct manufacturing labour: 2 250 hours $70 875 Assume...
Barbaro Production Company has developed the following standards for one of its products: STANDARD VARIABLE COST...
Barbaro Production Company has developed the following standards for one of its products: STANDARD VARIABLE COST CARD One Unit of Product Materials: 30 square feet × $5 per square foot $150.00 Direct labor: 16 hours × $7 per hour 112.00 Variable manufacturing overhead: 16 direct labor hours × $5 per hour 80.00 Total standard variable cost per unit $342.00 The company records materials price variances at the time of purchase. The following activity occurred during the month of April: Materials...
  Clean Water manufactures a water filter system. The cost standards developed by Clean Water appear below....
  Clean Water manufactures a water filter system. The cost standards developed by Clean Water appear below. Manufacturing overhead at Clean Water is applied to production based on standard direct labor-hours: Standard quantity per system Standard cost per Kilogram or hour Standard cost per system Direct materials 4 Kilograms $3.25 $13.00 Direct labor 1.4 hours $11.00 15.40 Variable overhead 1.4 hours $4.00 5.60 Fixed overhead 1.4 hours $6.00    8.40 Total standard cost per sucker $42.40 The standards above were based...
Copper Bottom Pot Company manufactures one product, The Big Pot. The company has the following standards...
Copper Bottom Pot Company manufactures one product, The Big Pot. The company has the following standards per unit for the The Big Pot: Standard quantity Standard price Standard cost Direct materials 6.0 KGs $14 per KG $84 Direct labour 1.5 Hours $20 per hour $30 The following is recorded by the company for The Big Pot for January 2020: The company produced 600 units during the month A total of 4000 KGS of material were purchased at a cost of...
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or...
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost   Direct materials 3 feet $ 5 per foot $ 15   Direct labor ? hours ? per hour ?      During March, the company purchased direct materials at a cost of $45,210, all of which were used in the production of 2,500 units of product. In addition, 4,100 hours of direct labor time were worked on the product during...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT