Question

In: Accounting

The standards for one case of liquid weed killer are as follows: Direct materials 7 lb...

The standards for one case of liquid weed killer are as follows:

Direct materials 7 lb @ $ 8.25 /lb
Direct labor 4 hr @ $ 17.6 /hr
Variable overhead (based on machine hours) 1.3 hr @ $ 6.05 /hr


During the week ended May 6, the following activity took place:

5,162 machine hours were worked.

29,553 lb of raw material were purchased for inventory at a total cost of $248,836.

4,180 cases of finished product were produced.

29,110 lb of raw material were used.

16,352 labor hours were worked at an average rate of $17.88 per hour.

$30,146 actual variable overhead costs were incurred.

Required:

Calculate each of the following variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

a. price variance for raw material purchased

b. Raw material usage variance

c. Direct labor rate variance

d. Direct labor efficiency variance

e Variable overhead efficiency variance

(two solutions are required here)

Solutions

Expert Solution

Hi

Let me know in case you face any issue:

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The standards for one case of liquid weed killer are as follows: Direct materials 7 lb...
The standards for one case of liquid weed killer are as follows: Direct materials 7 lb @ $ 9 /lb Direct labor 4.3 hr @ $ 19.2 /hr Variable overhead (based on machine hours) 1.4 hr @ $ 6.6 /hr During the week ended May 6, the following activity took place: 5,559 machine hours were worked. 29,553 lb of raw material were purchased for inventory at a total cost of $271,297. 4,180 cases of finished product were produced. 29,110 lb...
The standards for one case of liquid weed killer are as follows: Direct materials 6 lb...
The standards for one case of liquid weed killer are as follows: Direct materials 6 lb @ $ 7.5 /lb Direct labor 3.6 hr @ $ 16 /hr Variable overhead (based on machine hours) 1.2 hr @ $ 5.5 /hr During the week ended May 6, the following activity took place:    4,332 machine hours were worked. 23,028 lb of raw material were purchased for inventory at a total cost of $176,164. 3,800 cases of finished product were produced. 22,683...
Ch 15 part 2 The standards for one case of Saycheles are: Direct materials 7 lbs....
Ch 15 part 2 The standards for one case of Saycheles are: Direct materials 7 lbs. @ $5.90/lb. Direct labor 4.2 hrs. @ $13.00/hr. During the week ended April 15, the following activity took place: • 14,500 lbs. of raw material were purchased for inventory at a total cost of $81,200; • 1,800 cases of finished product were produced; • 13,680 lbs. of raw material were used; • 7,380 labor hours were worked at an average rate of $13.40 per...
The direct material and direct labor standards for one case of Springbreak Tonic are: Direct Materials...
The direct material and direct labor standards for one case of Springbreak Tonic are: Direct Materials (5 quarts @ $8 per quart) …………………… $40 Direct Labor (2 hours @ $12 per hour) ……………………….. 24 During the week ended March 7, the following activity took place: 16,000 quarts of raw materials were purchased for inventory at a cost of $8.10 per quart. 3,000 cases of finished product were produced. 14,700 quarts of raw material were used. 6,300 hours of direct labor...
The standard costs for a unit of Dandy? follow: Direct materials (2 lb. at $7 per...
The standard costs for a unit of Dandy? follow: Direct materials (2 lb. at $7 per lb.) $14.00 Direct manufacturing labor (1/2 hour at $20 per hour) 10.00 Manufacturing overhead (80% of direct manufacturing labor costs) 8.00 $32.00 The following data were obtained fromLowell: Lowell?'srecords for the month of? May: Debit Credit Revenues $160,000 Accounts payable control (for May's purchases of direct materials) 78,400 Direct materials price variance $3,750 Direct materials efficiency variance 2,600 Direct manufacturing labor price variance 2,000...
Aaha Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one...
Aaha Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one car cover are as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost   Direct materials 9.0 metres of cloth $ 10 per metre $ 90.00   Direct labour 0 hours $ 20 per hour $ 7   Variable overhead 0 hours $ 8 per hour $ 3 Budgeted fixed overhead cost is $17,400, and the normal production volume is 2,885 car covers. Overhead is...
The Koski Company has established standards as follows: Direct materials: 3 pounds at $4 per pound...
The Koski Company has established standards as follows: Direct materials: 3 pounds at $4 per pound = $12 per unit Direct labor: 2 hours at $8 per hour = $16 per unit Variable overhead: 2 hours at $5 per hour = $10 per unit Actual production figures for the past year were as follows: Units produced 500 Direct materials used 1,600 pounds Direct materials purchased (3,000 pounds) $12,300 Direct labor cost (950 hours) $7,790 Variable overhead cost incurred $4,655 The...
For Russell, Inc., direct materials standards are 5 pounds at $15 per pound, direct labor standards...
For Russell, Inc., direct materials standards are 5 pounds at $15 per pound, direct labor standards are 2 hours at $25 per hour, and variable overhead is applied at a rate of $50 per hour. Russell budgeted to manufacture and sell 280,000 units for $550 per unit, but actually manufactured and sold 300,000 units for total revenues of $163,000,000, spending $25,000,000 for 1,600,000 pounds of direct materials and $14,000,000 for 550,000 hours of direct labor. Fixed overhead was budgeted at...
Evergreen, Inc., has the set the following standards for direct materials and direct manufacturing labor for...
Evergreen, Inc., has the set the following standards for direct materials and direct manufacturing labor for each 25-lb. bag of chemical fertilizer it produces: Per Bag                   Direct Materials: 31.25 pounds of XF/2000 @ $0.10          $3.125                   Direct Labor: 0.0625 hours @ $40.00 per hour                         2.500 The company had planned to produce 2,000,000 pounds of the fertilizer during February 2018, but manufactured 25% more fertilizer than planned, using 3,375,000 pounds of XF/2000 and 6,500 direct manufacturing labor hours. The...
You have extracted the following standards for one of your company’s products: Direct materials: 0.3 metres...
You have extracted the following standards for one of your company’s products: Direct materials: 0.3 metres @ $15 = $4.50 Direct labour: 0.5 hour @ $20 = $10 The following actual results were recorded for the period: Direct materials: 3500 metres purchased and used; total cost $53,900 Direct labour: 5000 hours; total labour cost $105,000 Production = 12,000 units          Compute the materials price and usage variances, and the labour rate and                efficiency variances, for your company.                                                      
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT