Question
In: Accounting
5. E9-13 Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4] Amber Company produces iron...
5.
E9-13 Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4]
Amber Company produces iron table and chair sets. During
October, Amber’s costs were as follows:
| Actual purchase price | $ 2.80 | per lb. |
| Actual direct labor rate | $ 8.00 | per hour |
| Standard purchase price | $ 2.60 | per lb. |
| Standard quantity for sets produced | 1,020,000 | lbs. |
| Standard direct labor hours allowed | 21,000 | |
| Actual quantity purchased in October | 1,265,000 | lbs. |
| Actual direct labor hours | 15,000 | |
| Actual quantity used in October | 1,050,000 | lbs. |
| Direct labor rate variance | $6,000 | F |
Required:
1. Calculate the total cost of purchases for
October.
2. Compute the direct materials price variance
based on quantity purchased. (Indicate the effect of each
variance by selecting "F" for favorable, "U" for
unfavorable.)
3. Calculate the direct materials quantity
variance based on quantity used. (Indicate the effect of
each variance by selecting "F" for favorable, "U" for
unfavorable.)
4. Compute the standard direct labor rate for
October. (Round your answer to 2 decimal
places.)
5. Compute the direct labor efficiency variance
for October. (Round your intermediate calculation to 2
decimal places. Indicate the effect of each variance by selecting
"F" for favorable, "U" for unfavorable.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
E9-13 Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4] Amber Company produces iron table...
E9-13 Determining Actual Costs, Standard Costs, and Variances
[LO 9-3, 9-4]
Amber Company produces iron table and chair sets. During
October, Amber’s costs were as follows:
Actual purchase price
$ 2.40
per lb.
Actual direct labor rate
$ 7.60
per hour
Standard purchase price
$ 2.20
per lb.
Standard quantity for sets
produced
980,000
lbs.
Standard direct labor hours
allowed
12,000
Actual quantity purchased in
October
1,125,000
lbs.
Actual direct labor hours
11,000
Actual quantity used in
October
1,010,000
lbs....
E9-13 Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4] Amber Company produces iron table...
E9-13 Determining Actual Costs, Standard Costs, and Variances
[LO 9-3, 9-4]
Amber Company produces iron table and chair sets. During
October, Amber’s costs were as follows:
Actual purchase price
$ 2.40
per lb.
Actual direct labor rate
$ 7.60
per hour
Standard purchase price
$ 2.20
per lb.
Standard quantity for sets
produced
980,000
lbs.
Standard direct labor hours
allowed
12,000
Actual quantity purchased in
October
1,125,000
lbs.
Actual direct labor hours
11,000
Actual quantity used in
October
1,010,000
lbs....
E9-4 Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4] Suds & Cuts is a...
E9-4 Calculating Direct Materials and Direct Labor Variances [LO
9-3, 9-4]
Suds & Cuts is a local pet grooming shop owned by Collin
Bark. Collin has prepared the following standard cost card for each
dog bath given:
Standard Quantity
Standard Rate
Standard Unit Cost
Shampoo
1.2
oz.
$
0.20
per oz.
$
0.24
Water
10
gal.
$
0.04
per gal.
0.40
Direct labor
0.8
hr.
$
9.00
per hr.
7.20
During the month of July, Collin’s employees gave 300 baths....
Amber Company produces iron table and chair sets. During October, Amber’s costs were as follows: Actual...
Amber Company produces iron table and chair sets. During
October, Amber’s costs were as follows:
Actual purchase price
$ 3.20
per lb.
Actual direct labor rate
$ 8.40
per hour
Standard purchase price
$ 3.00
per lb.
Standard quantity for sets produced
1,060,000
lbs.
Standard direct labor hours allowed
21,000
Actual quantity purchased in October
1,365,000
lbs.
Actual direct labor hours
19,000
Actual quantity used in October
1,090,000
lbs.
Direct labor rate variance
$6,460
F
Required:
1. Calculate the total...
Amber Company produces iron table and chair sets. During October, Amber’s costs were as follows: Actual...
Amber Company produces iron table and chair sets. During
October, Amber’s costs were as follows:
Actual purchase price
$ 1.80
per lb.
Actual direct labor rate
$ 7.00
per hour
Standard purchase price
$ 1.60
per lb.
Standard quantity for sets
produced
920,000
lbs.
Standard direct labor hours
allowed
15,000
Actual quantity purchased in
October
1,065,000
lbs.
Actual direct labor hours
7,000
Actual quantity used in
October
950,000
lbs.
Direct labor rate variance
$5,000
F
Required:
a. Calculate the total...
PA9-5 Calculating Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances [LO 9-3, 9-4, 9-5] Bullseye Company...
PA9-5 Calculating
Direct Materials, Direct Labor, Variable Manufacturing Overhead
Variances [LO 9-3, 9-4, 9-5]
Bullseye Company
manufactures dartboards. Its standard cost information
follows:
Standard Quantity
Standard Price (Rate)
Standard Unit Cost
Direct materials
(cork board)
2.5
sq. ft.
$
2.00
per sq. ft.
$
5.00
Direct
labor
1
hrs.
$
14.00
per hr.
14.00
Variable
manufacturing overhead (based on direct labor hours)
1
hrs.
$
0.50
per hr.
0.50
Fixed
manufacturing overhead ($40,000 ÷ 160,000 units)
0.25
Bullseye has the...
E9-11 Calculating Variable Manufacturing Overhead Variances [LO 9-5] Lamp Light Limited (LLL) manufactures lampshades. It applies...
E9-11 Calculating Variable Manufacturing Overhead Variances [LO
9-5]
Lamp Light Limited (LLL) manufactures lampshades. It applies
variable overhead on the basis of direct labor hours. Information
from LLL’s standard cost card follows:
Standard Quantity
Standard Rate
Standard Unit Cost
Variable manufacturing overhead
0.6
$0.80
$0.48
During August, LLL had the following actual results:
Units produced and sold
25,100
Actual variable overhead
$
9,500
Actual direct labor hours
16,100
Required:
Compute LLL’s variable overhead rate variance, variable overhead
efficiency variance, and...
Exercise 9-13 Direct Materials and Direct Labor Variances [LO9-4, LO9-5] Huron Company produces a commercial cleaning...
Exercise 9-13 Direct Materials and Direct Labor Variances
[LO9-4, LO9-5]
Huron Company produces a commercial cleaning compound known as
Zoom. The direct materials and direct labor standards for one unit
of Zoom are given below:
Standard Quantity or Hours
Standard Price
or Rate
Standard
Cost
Direct materials
4.6
pounds
$
2.50
per pound
$
11.50
Direct labor
0.2
hours
$
18.00
per hour
$
3.60
During the most recent month, the following activity was
recorded:
Twenty thousand pounds of material...
E9-3 (Static) Preparing a Flexible Budget Performance Report [LO 9-2] Gleason Guitars produces acoustic guitars. The...
E9-3 (Static) Preparing a Flexible Budget Performance Report [LO 9-2] Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).)
PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] Barley Hopp, Inc.,...
PA9-1 Calculating Direct Material, Direct Labor, Variable
Overhead Variances [LO 9-3, 9-4, 9-5] Barley Hopp, Inc.,
manufactures custom-ordered commemorative beer steins. Its standard
cost information follows: Standard Quantity Standard Price (Rate)
Standard Unit Cost Direct materials (clay) 1.70 lbs. $ 1.80 per lb.
$ 3.06 Direct labor 1.70 hrs. $ 10.00 per hr. 17.00 Variable
manufacturing overhead (based on direct labor hours) 1.70 hrs. $
1.10 per hr. 1.87 Fixed manufacturing overhead ($402,500.00 ÷
175,000.00 units) 2.30 Barley Hopp had...
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