Question

In: Accounting

West and Jones Granite Corp uses a standard cost system for its single product. The following...

West and Jones Granite Corp uses a standard cost system for its single product. The following data are available: ACTUAL for the current year: Purchase of raw materials (5,200 sq ft at $11.80) $61,360 Raw materials used 4,800 sq ft Direct Labor costs (22,000 at $13.80) $303,600 Actual variable overhead cost $64,250 Units produced 5,820 units Standards per unit of product: Raw materials 1.0 sq ft at $10.70/sq ft Direct labor 3.8 hours at $13.50/hr Variable overhead $2.75 per direct labor hour Compute the following variances: 1. material variance (price and quantity) 2. labor variance (rate and efficiency) 3. variable overhead variance (spending and efficiency)

1- Using the attached problem, compute the material price variance.

3,750 U

5,720 U

6,600 U

10,914 F

2-

Using the attached problem, compute the material quantity variance.

3,750 U

5,720 U

6,600 U

10,914 F

3-

Using the attached problem, compute the labor rate variance.

3,750 U

5,720 U

6,600 U

10,914 F

4-

Using the attached problem, compute the labor efficiency variance.

319 F

1,566 F

3,750 U

6,600 U

5-

Using the attached problem, compute the total labor variance.

319 F

1,566 F

5,034 U

6,600 U

6-

Using the attached problem, compute the variable manufacturing overhead spending variance.

319 F

1,566 F

3,431 U

3,750 U

7-

Using the attached problem, compute the variable manufacturing overhead efficiency variance.

319 F

1,566 F

3,431 U

3,750 U

8-

Using the attached problem, compute the total variable manufacturing overhead variance.

319 F

1,566 F

3,431 U

3,750 U

Solutions

Expert Solution

1) Materials price variance
(Actual rate - standard rate)*Aq purchased
(11.80   - 10.70)*5200
5720 U
2) Material Qty variance
(AQ used - SQ allowed)*std rate
(4800      - 5820*1)*10.70
10,914 F
3) labor rate variance
(Actual rate - standard rate)*actual hours
(13.80-13.50)*22000
6600 U
4) labor efficiency variabce
(Actual hours - standard hrs allowed)*standard rate
(22000 - 5820*3.8)*13.5
1,566 F
5) total labor variance
5034 U
6) manufacturing overhead spending variance
(Actual rate - standard rate)*actual hours
(64250 -22000*2.75)
3750 U
7) manufacturing overhead efficiency variance
(Actual hours - standard hrs allowed)*standard rate
(22000 - 5820*3.8)*2.75
319 F
8) Variable manufacturing overhead variance
3431 U

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

West and Jones Granite Corp uses a standard cost system for its single product. The following...
West and Jones Granite Corp uses a standard cost system for its single product. The following data are available: ACTUAL for the current year: Purchase of raw materials (5,200 sq ft at $11.80) $61,360 Raw materials used 4,800 sq ft Direct Labor costs (22,000 at $13.80) $303,600 Actual variable overhead cost $64,250 Units produced 5,820 units Standards per unit of product: Raw materials 1.0 sq ft at $10.70/sq ft Direct labor 3.8 hours at $13.50/hr Variable overhead $2.75 per direct...
Thompson Company uses a standard cost system for its single product. The following data are available:...
Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Raw materials purchased and used (12,000 yards at $13.00 per yard)         $156,000 Direct labor costs (10,200 hours at $10.00 per hour) ………… $102,000 Actual variable overhead cost …………………………………............... $84,150 Units produced ……………………………………………….......................... 12,600 units Standards per unit of product: Raw Materials................. 1.1 yarts at $15.00 per yard Direct Labor..................... 0.8 hours at $9.50 per hour Variable Overhead........ $8...
Thompson Company uses a standard cost system for its single product. The following data are available:...
Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year:   Purchases of raw materials (11,000 yards at $11.00 per yard) $ 121,000   Raw materials used 15,000 yards   Direct labor costs (10,400 hours at $8.00 per hour) $ 83,200   Actual variable overhead cost $ 84,050   Units produced 12,800 units Standards per unit of product:   Raw materials 1.5 yards at $13.00 per yard   Direct labor .8 hours at $7.50 per...
Thompson Company uses a standard cost system for its single product The following data is available...
Thompson Company uses a standard cost system for its single product The following data is available for the month of May 2017: Standards per unit of product: Direct materials 3 pounds at $8 per yard Direct labor 1.5 hours at $14 per hour Actual experience for the current year: Purchases of raw materials (15,000 pounds ) $124,500 Raw materials used $12,000 pounds Direct labor costs (6,720) $95,760 Units produced 4200 Required: Complete a table and state how well direct material...
Regency Corp. uses a standard cost system to account for the costs of its one product....
Regency Corp. uses a standard cost system to account for the costs of its one product. Fixed overhead is applied to production at a rate of $27.10 per unit, based on budgeted production is 2,445 per month. During November, Regency produced 2,295 units. Fixed overhead incurred totaled $70,420. a. Calculate the fixed overhead spending variance. b. Calculate the fixed overhead volume variance.
Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is...
Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given: Standard costs per unit: Raw Materials (1.5 grams x $16 per gram) . . . . . . . . . $ 24.00 Direct Labor (0.75 hours x $8 per hour) . . . . . . . . . . . . $ 6.00 Variable Overhead (0.75 x $3 per...
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...
Queen Industries uses a standard costing system in the manufacturing of its single product. It requires...
Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 15,000 units. The standard cost for labor allowed for the output was $97,500, and there was an unfavorable direct labor time variance of $4,600. How many actual hours were worked ? [Hint: Round your answer in 2 decimal places] Your Answer:
11. Regent Corp. uses a standard cost system to account for the costs of its one...
11. Regent Corp. uses a standard cost system to account for the costs of its one product. Materials standards are 2.8 pounds of material at $13 per pound, and labor standards are 4 hours of labor at a standard wage rate of $10. During July Regent Corp. produced 3,280 units. Materials purchased and used totaled 10,050 pounds at a total cost of $132,050. Payroll totaled $147,380 for 13,240 hours worked.    a. Calculate the direct materials price variance. (Do not round...
Viking Corp. uses a standard cost system to account for the costs of its one products....
Viking Corp. uses a standard cost system to account for the costs of its one products. Material standards are 13 pounds of material at $1.30 per pound and 3 hours of labor at a standard wage rate of $13.4. During November, Viking Corp. produced and sold 2,400 units. Material purchases totaled 31,470 pounds at a total cost of $41,421. Material usage totaled 31,290 pounds. Payroll totaled $97,282 for 7,430 hours worked. Viking Corp. does not maintain inventories other than direct...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT