Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as follows:

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

PART 2

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 18,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 16,000, 18,000, and 20,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

A new product is being evaluated. Market research has surveyed the potential market for this product and believes that it will generate a total demand of 50,000 units at average price of $280. Total sots for the various value-chain functions using existing process technology are:

Management has a target profit percentage of 40% of sales. Production engineering indicates that a new process technology can reduce the manufacturing cost by 40% but it will cost $150,000.

1. Assuming the existing process technology is used, should the new product be releases to production?

The unit target cost is $X. The expected average unit cost if the new product is release to production would be $X. The new product Should/Should not be released to production because the expected average unity cost is greater than/less than the unit target cost.

2. Assuming the new process technology is purchased, should the new product be released to production?

First calculate the total cost savings if the new process technology is purchased.

The total cost savings will be $X.

If the new process technology is purchased, the expected average unity cost will be $X. The new product should/should not be released to production because the expected average unit cost is greater than/less than the unit target cost.

Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May:

Required:

1. Compute the equivalent units of production for materials and conversion for May.

2. Compute the cost per equivalent unit for materials and conversion for May.

3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.

4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May.

5. Prepare a cost reconciliation report for May..... Please explain how to solve this? Thank you!

1. Compute the equivalent units of production for materials and conversion for May.

2. Compute the cost per equivalent unit for materials and conversion for May. (Round your answers to 2 decimal places.)

3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

5. Prepare a cost reconciliation report for May. (Round your intermediate calculations to 2 decimal places.)

Calculating Delivery Cost Program in Python

write a program in Python that will ask a user to enter the purchase total, the number of the items that need to be delivered and delivery day. Then the system displays the cost of delivery along with the total cost.

Prompt the user to enter the purchase total. Pass the purchase total to a function as an argument to validate the purchase total above $150 and return True/False from the function to the calling code. If the return value is False, show an error message and asks the user if he/she wants to continue. If the return value from the first function is True, call another function that calculates the cost of delivery for a customer.

Ask a user to enter the number of the items that need to be delivered and delivery day and pass them to the function. Return the cost of delivery and the total cost to the calling code and display them to the user.

Make your program loop, prompting the user for whether they would like to calculate another delivery cost. Keep track of the number of the purchase and when the user exits, print out the total number of the purchase that entered to the system and the total cost of deliveries.

Your program should be able to handle some exceptions and invalid inputs, such as:

·Negative values.

·Invalid delivery day (1 for same day delivery and 2 for second-day delivery).

·Non-numeric and empty values

For example, if a user enters “$200” as purchase total, “7” as the number of the items and “1” as delivery in the same day, the program should be able to display the delivery cost of “17.50" and the total cost of “$217.50” ($200 + $17.50 ) for the user.

A typical example of the display of your program can be as follows. Your program MUST follow the same display style.

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Welcome to delivery charges Calculator
----------------------------------------

Please enter purchase total: 200
Please enter number of the items: 7

Please enter delivery day ([1] for 1st day and [2] for 2nd day): 1

Delivery charges: $17.50
Total cost: $217.50

Do you want to calculate delivery charges for another purchase? (y/n): y

Please enter purchase total: 90

ERR: Sorry, purchase total need to be above $150.
Do you want to calculate delivery charges for another purchase? (y/n): n

Thanks for using the delivery charges Calculator!

See you again!

Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company’s two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters.

Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $301,600. During that time, the company produced 13,600 units of the M-008 and 2,100 units of the M-123. The direct costs of production were as follows:

Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows:

Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company’s two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $322,400. During that time, the company produced 14,400 units of the M-008 and 2,300 units of the M-123. The direct costs of production were as follows:

You are comparing different loan rates and terms on a home purchase. The inputs are the price, percent down payment, annual interest rate and length of the loan (in months).

Given the above, calculate the loan amount, the monthly payment, total cost (the down payment and the total amount of principle and interest paid).

Do scenario analysis (via a data tables) as follows:

Vary the down payment from 10% to 40% in 5% increments. Show the effect on total cost and total interest paid in a single table.

Vary the interest rate from 1% to 10% in 1% increments. Show the effect on total cost and total interest paid in a single table.

Vary the term from 180 months to 360 months in increments of 12 and vary the cost from $225, 000 to $425,000 in increments of $50,000. Show the effect on total cost in a single table.

Please show how to do this using Excel functions.

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

5.

Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 4,000 computers:

If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $101,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.5 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

1)  

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 18,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 16,000, 18,000, and 20,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

2)  

Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 6,000 computers:

If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $325,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.25 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

1.Waterway Company had the following department information for the month: Total materials costs $52000 Equivalent units of production - materials 10000 Total conversion costs $99000 Equivalent units of production - conversion costs 25000 What is the total manufacturing cost per unit?

2.Vaughn Industries has 8100 equivalent units of production for both materials and for conversion costs. Total manufacturing costs are $140930. Total materials costs are $98000. How much is the conversion cost per unit?

3. Bonita Industrieshas beginning and ending work in process inventories of $160000 and $175000 respectively. If total manufacturing costs are $680000, what is the total cost of goods manufactured?