Question
In: Accounting
Orion Corporation has established the following standards for the prime costs of one unit of its...
Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards.
| Standard Quantity | Standard Price or Rate | Standard Cost | |||||||||||
| Direct material | 12.00 | pounds | $ | 2.80 | per pound | $ | 33.60 | ||||||
| Direct labor | 2.00 | hour | $ | 4.00 | per hour | 8.00 | |||||||
| Total | $ | 41.60 | |||||||||||
During June, Orion purchased 256,000 pounds of direct material at a total cost of $760,320. The total wages for June were $183,084, 75 percent of which were for direct labor. Orion manufactured 19,000 dartboards during June, using 220,400 pounds of the direct material purchased in June and 41,610 direct-labor hours.
Required:
Compute the following variances for June.(Do not round intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)
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Solutions
ekkarill92 answered 1 year agoRelated Solutions
Orion Corporation has established the following standards for the prime costs of one unit of its...
Orion Corporation has established the following standards for
the prime costs of one unit of its chief product, dartboards.
Standard Quantity
Standard Price or Rate
Standard Cost
Direct material
6.00
pounds
$
2.20
per pound
$
13.20
Direct labor
1.40
hour
$
7.00
per hour
9.80
Total
$
23.00
During June, Orion purchased 172,000 pounds of direct material
at a total cost of $397,320. The total wages for June were
$290,700, 90 percent of which were for direct labor. Orion...
Gandolph Game Company has established the following standards for the prime costs of one unit of...
Gandolph Game Company has established the following standards
for the prime costs of one unit of its chief product, dartboards.
Standard Cost Standard Quantity Standard Price or Rate Direct
material $ 5.00 5.00 kilograms $ 1.00 per kilogram Direct labor
1.00 0.20 hour $ 5.00 per hour Total $ 6.00 During September,
Gandolph purchased 195,000 kilograms of direct material at a total
cost of $214,500. The total wages for September were $40,404, 75
percent of which were for direct labor....
Benoit Wines uses a standard costing system and has established the following standards for the prime...
Benoit Wines uses a standard costing system and has established
the following standards for the prime costs for its Merlot by the
litre:
Standard quantity
Standard
price
Standard cost
Direct
materials
1.75kg of
grapes
$2.31/kg
$ 4.05
Direct labou r
0.25 direct
labour
hours
$16.00
$4.00
During August, Benoit purchased 430,000 kilograms of direct
materials at a total cost of $967,500 from a new supplier. The
total factory wages for August were $1,080,000,...
17. A manufacturing company that has only one product has established the following standards for its...
17.
A manufacturing company that has only one product has
established the following standards for its variable manufacturing
overhead. Variable manufacturing overhead standards are based on
machine-hours.
Standard hours per unit of output
4.40
machine-hours
Standard variable overhead rate
$11.55
per machine-hour
The following data pertain to operations for the last month:
Actual hours
8,800
machine-hours
Actual total variable manufacturing overhead
cost
$95,910
Actual output
1,900
units
What is the variable overhead efficiency variance for the
month?
$2,832 U
$7,293...
Piper Ltd. has determined the following costs for making one unit of its only product: Direct...
Piper Ltd. has determined the following costs for making one
unit of its only product:
Direct materials
$6.00
Direct labour
4.00
$10.00
The company is, however, not sure of the behaviour of its
manufacturing overhead. The controller therefore ran a simple
regression based on 20 pairs of monthly observations and obtained
the following results:
Y = $6,000 + 1.50X
Y represents total monthly manufacturing overhead costs while X
represents total monthly manufacturing direct labour costs.
The controller also estimated that...
The following materials standards have been established for a particular product: Standard quantity per unit of...
The following materials standards have been established for a
particular product: Standard quantity per unit of output 5.5 meters
Standard price $ 19.10 per meter The following data pertain to
operations concerning the product for the last month: Actual
materials purchased 9,100 meters Actual cost of materials purchased
$ 182,700 Actual materials used in production 8,600 meters Actual
output 1,540 units What is the materials price variance for the
month?
The following materials standards have been established for a particular product: Standard quantity per unit of...
The following materials standards have been established for a
particular product:
Standard quantity per unit of output
4.9
pounds
Standard price
$
13.70
per pound
The following data pertain to operations concerning the product
for the last month:
Actual materials purchased
5,550
pounds
Actual cost of materials purchased
$
63,380
Actual materials used in production
5,050
pounds
Actual output
750
units
The direct materials purchases variance is computed when the
materials are purchased.
What is the materials quantity variance for...
The following materials standards have been established for a particular product: Standard quantity per unit of...
The following materials standards have been established for a
particular product:
Standard quantity per unit of output
6.4
pounds
Standard price
$
15.20
per pound
The following data pertain to operations concerning the product
for the last month:
Actual materials purchased
7,800
pounds
Actual cost of materials purchased
$
64,880
Actual materials used in production
7,300
pounds
Actual output
900
units
The direct materials purchases variance is computed when the
materials are purchased.
What is the materials quantity variance for...
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...
Antuan Company set the following standard costs for one unit of its product.
Antuan Company set the following standard costs for one unit of its product.
Direct materials (4.0 Ibs. @ $5.00 per Ib.)
$
20.00
Direct labor (1.8 hrs. @ $11.00 per hr.)
19.80
Overhead (1.8 hrs. @ $18.50 per hr.)
33.30
Total standard cost
$
73.10
The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are...
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