Question
In: Accounting
You have been given the following information: Expected Production Direct Labor-Hours (DLH) Per Unit Total Direct...
You have been given the following information:
|
Expected Production |
Direct Labor-Hours (DLH) Per Unit |
Total Direct |
|
|
Product M |
700 |
7.0 |
4,900 |
|
Product N |
100 |
4.0 |
400 |
|
Total direct labor-hrs |
5,300 |
The direct labor rate is $24.20 per DLH. The direct
materials cost per unit for each product is given
below:
|
Direct Materials |
|
|---|---|
|
Product M |
$279.00 |
|
Product N |
$251.00 |
The company is considering adopting an activity-based
costing system with the following activity cost pools, activity
measures, and expected activity:
|
Expected Activity |
|||||
|
Activity Cost Pools |
Activity Measures |
Estimated |
Product |
Product |
Total |
|
Labor-related |
DLHs |
$132,394 |
4,900 |
400 |
5,300 |
|
Product testing |
No. of Tests |
17,318 |
400 |
300 |
700 |
|
General factory |
Machine Hrs |
81,522 |
3,000 |
3,300 |
6,300 |
|
$231,234 |
|||||
a. Determine the unit product cost of each product under the
company's traditional costing method where total overhead cost is
allocated based on DLH used for each product.
b. Determine the unit product cost of each product under the
activity-based costing method.
c. What is your conclusion?
In all computations involving dollars, round off your answer to the nearest whole cent.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
You have been given the following per unit information about the production of Gillian Inc., and...
You have been given the following per unit information about the
production of Gillian Inc., and are asked to provide the plant
manager with information for a meeting with the vice-president of
operations:
Standard
Quantity
Standard
Price
Actual
Quantity
Actual
Price
Direct materials
5 kg
$3 / kg
5.5 kg
$2.80 / kg
Direct labour
1.5 hours
$18 / hour
1.0 hours
$16 / hour
Production data, both budgeted and actual, for the year are as
follows:
Description
Amount
Actual...
The following labor standards have been established for a particular product: Standard labor-hours per unit of...
The following labor standards have been established for
a particular product:
Standard labor-hours per unit of output
9.0
hours
Standard labor rate
$
16.60
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
9,600
hours
Actual total labor cost
$
156,480
Actual output
950
units
What is the labor rate variance for the month?
$17,115 U
$14,550 F
$2,880 F
$14,550 U
The following labor standards have been established for a particular product: Standard labor-hours per unit of...
The following labor standards have been established for a
particular product:
Standard labor-hours per unit of output
8.5
hours
Standard labor rate
$
12.30
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
6,300
hours
Actual total labor cost
$
74,970
Actual output
800
units
What is the labor efficiency variance for the month?
The following labor standards have been established for a particular product: Standard labor hours per unit...
The following labor standards have been established for a
particular product:
Standard labor hours per unit of output
4.5
hours
Standard labor rate
$
19.70
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
6,500
hours
Actual total labor cost
$
130,975
Actual output
1,400
units
Required:
a. What is the labor rate variance for the
month?
b. What is the labor efficiency
variance for the month?
(Indicate the effect of each...
The following labor standards have been established for a particular product: Standard labor hours per unit...
The following labor standards have been established for a
particular product:
Standard labor hours
per unit of output
4.9
hours
Standard labor
rate
$20.70
per hours
The following data pertain to operations concerning the product
for the last month:
Actual hours
worked
7,500
hours
Actual total labor
cost
$156,000
Actual output
1,500
units
Required:
a.
What is the labor rate variance for the month? (Input
the amount as a positive value. Leave no cells blank - be certain
to enter...
12. The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour....
12.
The per-unit standards for direct labor are 1.5 direct labor
hours at $15 per hour. If in producing 3400 units, the actual
direct labor cost was $69750 for 4500 direct labor hours worked,
the total direct labor variance is
$2250 unfavorable.
$6750 unfavorable.
$6750 favorable.
$3400 unfavorable.
13. A company purchases 10000 pounds of materials. The materials
price variance is $7000 favorable. What is the difference between
the standard and actual price paid for the materials?
$1.43
$0.70
$7.00...
12. The following labor standards have been established for a particular product: Standard labor-hours per unit...
12.
The following labor standards have been established for a
particular product:
Standard labor-hours
per unit of output
8.9
hours
Standard labor rate
$
12.70
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours
worked
6,700
hours
Actual total labor cost
$
82,410
Actual output
1,000
units
What is the labor efficiency variance for the month?
Calculate the cost per equivalent unit in the blending department given the following information: Total Direct...
Calculate the cost per equivalent unit in the blending
department given the following information:
Total Direct Materials Conversion
Completed 100% 10,000 10,000 10,000
WIP:
Run A 3,000 2,000 (67%) 1,500 (50%)
Run B 5,000 4,500 (90%) 0 (0%)
Run C 20,000 10,000 (50%) 8,000 (40%)
Total Costs:
Direct Materials: $60,000
Conversion: $50,000
The standards for product G78V specify 6.1 direct labor-hours per unit at $14.10 per direct labor-hour....
The standards for product G78V specify 6.1 direct labor-hours
per unit at $14.10 per direct labor-hour. Last month 1,800 units of
product G78V were produced using 11,030 direct labor-hours at a
total direct labor wage cost of $146,220.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
(Indicate the effect of each variance by selecting "F"
for favorable, "U" for unfavorable, and "None" for no effect (i.e.,
zero...
Actual quantity of direct labor 5,000 hours Actual direct labor rate $10 per hour Total direct...
Actual quantity of direct labor 5,000 hours
Actual direct labor rate $10 per hour
Total direct labor variance $8,600 Unfavorable .
Direct labor rate variance $4,000 Unfavorable .
Standard hours allowed per unit produced 2 hours
Required: Find the following unknowns.
a. Direct labor efficiency variance
b. Standard rate per direct labor hour
c. Actual quantity produced
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