Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour | $17.40 |
| Standard labor time per unit | 20 min. |
| Standard number of lbs. of brass | 1.2 lbs. |
| Standard price per lb. of brass | $9.50 |
| Actual price per lb. of brass | $9.75 |
| Actual lbs. of brass used during the week | 8,528 lbs. |
| Number of units produced during the week | 6,900 |
| Actual wage per hour | $17.92 |
| Actual hours for the week (30 employees × 40 hours) | 1,200 |
Required:
a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
| Direct materials standard cost per unit | $ |
| Direct labor standard cost per unit | $ |
| Total standard cost per unit | $ |
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Materials Price Variance | $ | Unfavorable |
| Direct Materials Quantity Variance | $ | Unfavorable |
| Total Direct Materials Cost Variance | $ | Unfavorable |
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | Unfavorable |
| Direct Labor Time Variance | $ | Favorable |
| Total Direct Labor Cost Variance | $ | Favorable |
In: Accounting
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 50 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour | $15 |
| Standard labor time per unit | 20 min. |
| Standard number of lbs. of brass | 1.2 lbs. |
| Standard price per lb. of brass | $10.75 |
| Actual price per lb. of brass | $11 |
| Actual lbs. of brass used during the week | 7,416 lbs. |
| Number of units produced during the week | 6,000 |
| Actual wage per hour | $15.45 |
| Actual hours for the week (50 employees × 32 hours) | 1,600 hrs. |
Required:
a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
| Direct materials standard cost per unit | $ |
| Direct labor standard cost per unit | $ |
| Total standard cost per unit | $ |
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Materials Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | |
| Direct Labor Time Variance | $ | |
| Total Direct Labor Cost Variance | $ |
In: Accounting
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour | $15.6 |
| Standard labor time per unit | 10 min. |
| Standard number of lbs. of brass | 1.8 lbs. |
| Standard price per lb. of brass | $9.5 |
| Actual price per lb. of brass | $9.75 |
| Actual lbs. of brass used during the week | 13,905 lbs. |
| Number of units produced during the week | 7,500 |
| Actual wage per hour | $16.07 |
| Actual hours for the week (30 employees × 35 hours) | 1,050 hrs. |
Required:
a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
| Direct materials standard cost per unit | $ |
| Direct labor standard cost per unit | $ |
| Total standard cost per unit | $ |
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Materials Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | |
| Direct Labor Time Variance | $ | |
| Total Direct Labor Cost Variance | $ |
In: Accounting
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
Standard wage per hour $12.00
Standard labor time per faucet 20 min.
Standard number of lbs. of brass 1.8 lbs.
Standard price per lb. of brass $12.75
Actual price per lb. of brass $13.00
Actual lbs. of brass used during the week 16,130 lbs.
Number of faucets produced during the week 8,700
Actual wage per hour $12.36
Actual hours for the week (30 employees × 36 hours) 1,080 hrs.
Required:
a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
Direct materials standard cost per unit $
Direct labor standard cost per unit $
Total standard cost per unit $
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Materials Price Variance $ Unfavorable
Direct Materials Quantity Variance $ Unfavorable
Total Direct Materials Cost Variance $ Unfavorable
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Labor Rate Variance $
Direct Labor Time Variance $
Total Direct Labor Cost Variance $
In: Accounting
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 40 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
Standard wage per hour $14.4
Standard labor time per unit 20 min.
Standard number of lbs. of brass 1.3 lbs.
Standard price per lb. of brass $10.75
Actual price per lb. of brass $11
Actual lbs. of brass used during the week 12,051 lbs.
Number of units produced during the week 9,000
Actual wage per hour $14.83
Actual hours for the week (40 employees × 36 hours) 1,440 hrs.
Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
Direct materials standard cost per unit $____
Direct labor standard cost per unit $ ____
Total standard cost per unit $ ____
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Materials Price Variance $____
Direct Materials Quantity Variance $ ____
Total Direct Materials Cost Variance $ ____
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Labor Rate Variance $____
Direct Labor Time Variance $ ____
Total Direct Labor Cost Variance $____
In: Accounting
Direct Materials and Direct Labor Variance Analysis
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour | $15.00 |
| Standard labor time per unit | 20 min. |
| Standard number of lbs. of brass | 1.8 lbs. |
| Standard price per lb. of brass | $11.50 |
| Actual price per lb. of brass | $11.75 |
| Actual lbs. of brass used during the week | 12,793 lbs. |
| Number of units produced during the week | 6,900 |
| Actual wage per hour | $15.45 |
| Actual hours for the week (30 employees × 35 hours) | 1,050 |
Required:
a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
| Direct materials standard cost per unit | $ |
| Direct labor standard cost per unit | $ |
| Total standard cost per unit | $ |
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Materials Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | |
| Direct Labor Time Variance | $ | |
| Total Direct Labor Cost Variance | $ |
In: Accounting
Direct Materials and Direct Labor Variance Analysis
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 60 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour | $17.40 |
| Standard labor time per unit | 20 min. |
| Standard number of lbs. of brass | 1.9 lbs. |
| Standard price per lb. of brass | $12.25 |
| Actual price per lb. of brass | $12.50 |
| Actual lbs. of brass used during the week | 11,742 lbs. |
| Number of units produced during the week | 6,000 |
| Actual wage per hour | $17.92 |
| Actual hours for the week (60 employees × 32 hours) | 1,920 |
Required:
a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
| Direct materials standard cost per unit | $ |
| Direct labor standard cost per unit | $ |
| Total standard cost per unit | $ |
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Materials Price Variance | $ | Unfavorable |
| Direct Materials Quantity Variance | $ | Unfavorable |
| Total Direct Materials Cost Variance | $ | Unfavorable |
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | Unfavorable |
| Direct Labor Time Variance | $ | Favorable |
| Total Direct Labor Cost Variance | $ | Favorable |
In: Accounting
Cost of Production Report: No Beginning
Inventories
Oregon Paper Company produces newsprint paper through a special
recycling process using scrap paper products. Production and cost
data for October 2009, the first month of operations for the
company's new Portland plant, follow:
| Units of product started in process during October | 90,000 tons |
| Units completed and transferred to finished goods | 75,000 tons |
| Machine hours operated | 10,000 |
| Direct materials costs incurred | $504,000 |
| Direct labor costs incurred | $193,920 |
Raw materials are added at the beginning of the process for each
unit of product produced, and labor and manufacturing overhead are
added evenly throughout the manufacturing process. Manufacturing
overhead is applied to Work-in-Process at the rate of $24 per
machine hour. Units in process at the end of the period were 65
percent converted.
Prepare a cost of production report for Oregon Paper Company for
October.
Round answers to the nearest whole number unless otherwise noted.
Do not use negative signs with your answers.
| Oregon Paper Company Cost of Production Report For the Month Ending October 31, 2009 |
||||
|---|---|---|---|---|
| Summary of units in process (tons): | ||||
| Beginning | Answer | |||
| Units started | Answer | |||
| In process | Answer | |||
| Completed | Answer | |||
| Ending | Answer | |||
| Equivalent units in process: | Materials | Conversion | Total | |
| Units completed | Answer | Answer | ||
| Plus equivalent units in ending inventory | Answer | Answer | ||
| Equivalent units in process | Answer | Answer | ||
| Total cost to be accounted for and cost per equivalent unit in process: | ||||
| Beginning work-in-process | Answer | Answer | Answer | |
| Current costs | Answer | Answer | Answer | |
| Total cost in process | Answer | Answer | Answer | |
| Equivalent units in process | Answer | Answer | ||
| Cost per equivalent unit in process (Do not round answers.) | Answer | Answer | Answer | |
| Accounting for total costs: | ||||
| Transferred out | Answer | |||
| Ending work-in-process: | ||||
| Materials | Answer | |||
| Conversion | Answer | Answer | ||
| Total cost accounted for | Answer | |||
In: Accounting
Direct Materials and Direct Labor Variance Analysis
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour | $12.00 |
| Standard labor time per unit | 15 min. |
| Standard number of lbs. of brass | 1.7 lbs. |
| Standard price per lb. of brass | $12.00 |
| Actual price per lb. of brass | $12.25 |
| Actual lbs. of brass used during the week | 10,506 lbs. |
| Number of units produced during the week | 6,000 |
| Actual wage per hour | $12.36 |
| Actual hours for the week (30 employees × 36 hours) | 1,080 |
Required:
a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
| Direct materials standard cost per unit | $ |
| Direct labor standard cost per unit | $ |
| Total standard cost per unit | $ |
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Materials Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | |
| Direct Labor Time Variance | $ | |
| Total Direct Labor Cost Variance | $ |
In: Accounting
What is the actual cost per unit produced and what is the primary cause of the difference between actual cost per unit produced in the framing department and the standard price per frame? (Volume Variance, Efficiency Variance or Price Variance)
Should the framing department be held responsible for the poor performance of the framing division? Explain Why or why not?
Use the scenario below to help with the questions:
DeFleur manufactures bicycles. The bicycles are manufactured in two divisions. In the framing division, the carbon bicycle frames are manufactured. In the assembly division, the components are assembled to the frame and the bike is ready for sale. There is no market for the unassembled frames and all manufactured frames are transferred to the assembly division. For the purposes of performance evaluation, the framing division transfers the completed frames to the assembly division at the budgeted standard cost of a frame. The budgeted units of production for the framing division is 1,000, all of which will be transferred to the assembly division at the standard full absorption cost.
The budgeted costs for the framing division are as follows:
| Direct Materials per unit: 10 layers of carbon-fiber at $20/layer | $200.00 |
| Direct Labor per unit: 8 hours at $12/hour | $96.00 |
1. Standard variable overhead is applied to products on the basis of direct labor hours at a rate of $4/unit produced.
Budgeted Fixed Overhead is $30,000 and the standard fixed cost per unit is based on the budgeted units of production.
Actual data for the period relating to the costs are as follows:
| The actual number of units produced was | 800 |
| Actual Fixed Overhead costs were | $32,000 |
| Actual Variable Overhead costs | $4,000 |
2. The framing division worked 7,500 direct labor hours during the year at a total cost of $93,750.
3. A total of 9,000 carbon-fiber layers were purchased and used in production during the year at a total cost of $171,000
4. Total Budgeted cost for the framing department was $330,000. The total actual cost was $300,750
(Note that all the questions on variance are with respect to the framing department.)
In: Accounting