Question
In: Accounting
Skootin’ Along Company manufactures skateboards in a local warehouse in Suburbia Conway. Manufacturing has 20 employees....
Skootin’ Along Company manufactures skateboards in a local warehouse in Suburbia Conway. Manufacturing has 20 employees. Each employee presently provides 35 hours of productive labor per week. Information about a production week is as follows:
Standard wage per hour $10.60
Standard labor time per skateboard 15 minutes
Standard number of feet of board per skateboard 4.0 feet
Standard price per foot of board $2.90
Actual price per foot of board $3.05
Actual feet of board used during the week 14,200 feet
Number of skateboards produced 3,500
Actual wage per hr. $10.00
Actual hours worked per week 700 hrs.
Determine the price variance, quantity variance, and overall variance for both direct material and direct labor. Explain what the variances indicates and what are some possible causes for the variances?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
a soap manufacturing company has three employees who work in a warehouse All of the warehouse...
a soap manufacturing company has three employees who work in a
warehouse All of the warehouse workers are authorized to order
inventory when it falls below order level.The workers complete a
purchase order and mail it to supplier of their choice .The
inventory is delivered directly to the warehouse .The workers send
a memo to accounts payable reporting receipt of inventory accounts
payable compares warehouse memo to suppliers invoice .Accounts
payable prepares a memo which treasurer signs .discuss internal
control...
Roustabout Company manufactures skateboards. Last year’s income statement is summarized below. Skateboards(2,000 units) Total ...
Roustabout Company manufactures skateboards. Last year’s
income statement is summarized below.
Skateboards(2,000 units)
Total
Sales Revenue $ 100,000
Variable Costs $ 40,000
Contribution Margin $ 60,000
Fixed Costs $ 55,500
Pre-Tax Profit $ 4,500
Required:
a. What is the CM per unit?
b. How many skateboards must be sold to breakeven?
c. What level of revenue is needed to earn a target pre-tax
income of $21,000? Use CM per unit to calculate your answer.
d. If...
Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the...
Suburbia Company manufactures a product through a continuous
single-step process. All materials are added at the beginning of
processing. Production and cost data for the company for February
2016 are as follows:
Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
finished goods
4,500 units
In process, end of month (60%
converted)
1,500 units
Manufacturing costs:
Work in process, beginning
(Materials $3,000; Conversion Costs: $18,360)
$21,360
Materials
$45,000
Direct...
Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the...
Suburbia Company manufactures a product through a continuous
single-step process. All materials are added at the beginning of
processing. Production and cost data for the company for February
2016 are as follows:
Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
finished goods
4,500 units
In process, end of month (60%
converted)
1,500 units
Manufacturing costs:
Work in process, beginning
(Materials $3,000; Conversion Costs: $18,360)
$21,360
Materials
$45,000
Direct...
Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the...
Suburbia Company manufactures a product through a continuous
single-step process. All materials are added at the beginning of
processing. Production and cost data for the company for February
2016 are as follows:
Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
finished goods
4,500 units
In process, end of month (60%
converted)
1,500 units
Manufacturing costs:
Work in process, beginning
(Materials $3,000; Conversion Costs: $18,360)
$21,360
Materials
$45,000
Direct...
Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the...
Suburbia Company manufactures a product through a continuous
single-step process. All materials are added at the beginning of
processing. Production and cost data for the company for February
2016 are as follows:
Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
finished goods
4,500 units
In process, end of month (60%
converted)
1,500 units
Manufacturing costs:
Work in process, beginning
(Materials $3,000 [≈ Weekend trip for two to Hawaii];...
1) Suburbia Company manufactures a product through a continuous single-step process. All materials are added at...
1)
Suburbia Company manufactures a product through a continuous
single-step process. All materials are added at the beginning of
processing. Production and cost data for the company for February
2016 are as follows:
Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
finished goods
4,500 units
In process, end of month (60%
converted)
1,500 units
Manufacturing costs:
Work in process, beginning
(Materials $3,000; Conversion Costs: $18,360)
$21,360
Materials
$45,000...
A manager at a local manufacturing company has been monitoring the output of one of the...
A manager at a local manufacturing company has been monitoring
the output of one of the machines used to manufacture chromium
shells. Past data indicate that if the machine is functioning
properly, the length of the shells produced by this machine can be
modeled as being normally distributed with a mean of 118
centimeters and a standard deviation of 4.3 centimeters. Suppose 10
shells produced by this machine are randomly selected. What is the
probability that the average length of...
You work for the HR department of a manufacturing firm. The company has 500 employees, a...
You work for the HR department of a manufacturing firm. The
company has 500 employees, a significant portion of whom have long
tenure in the company.
Eric Jenkins, a department manager who was hired 2 years ago,
contacted you, saying that he is interested in dismissing Laura
Harrison. Laura has been with the company for the past 25 years. He
is concerned that Laura is not adapting well to the new
technological changes that took place in the company over...
John Diaz is the President of Pacific Refrigeration. The company has 2,000 employees. It manufactures and...
John Diaz is the President of Pacific Refrigeration. The company
has 2,000 employees. It manufactures and sells a variety of
refrigeration un for commercial use. Recently, the company
experienced large losses due to a downturn in the economy and has a
subsequent decline in sa John thinks the losses were particularly
large because of the company's cost structure.
a. Exapand on John's thought How are large losses related to
the cost structure?
b. Identify possible ways to mitigate this problem...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
- NPV Your division is considering two projects with the following cash flows (in millions): 0...
- The equivalent synchronous impedance of a 25kVA, 400V three-phase Y-connected synchronous generator is 0.05 + j1.6...
ADVERTISEMENT