Questions
Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by...

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
July 1 Bal., 30,000 units, 10% completed 121,800
31 Direct materials, 155,000 units 620,000 741,800
31 Direct labor 90,000 831,800
31 Factory overhead 33,272 865,072
31 Goods transferred, 149,000 units ?
31 Bal., ? units, 45% completed ?

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to the nearest cent.

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, July 1
Started and completed in July
Transferred to Packing Department in July
Inventory in process, July 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
Direct Materials Conversion
Total costs for July in Roasting Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs charged to production:
Direct Materials Conversion Total
Inventory in process, July 1 $
Costs incurred in July
Total costs accounted for by the Roasting Department $
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance $
To complete inventory in process, July 1 $ $
Cost of completed July 1 work in process $
Started and completed in July
Transferred to Packing Department in July $
Inventory in process, July 31
Total costs assigned by the Roasting Department $

Feedback

1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit $
Change in conversion cost per equivalent unit $

Feedback

2. Compare the costs per equivalent unit for April and May. The costs per equivalent unit for materials and conversion for April are in the May 1 work in process inventory. The materials amount is given.

In: Accounting

Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by...

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
July 1 Bal., 7,900 units, 3/5 completed 25,912
31 Direct materials, 355,500 units 1,030,950 1,056,862
31 Direct labor 197,500 1,254,362
31 Factory overhead 49,418 1,303,780
31 Goods transferred, 356,000 units ?
31 Bal., ? units, 1/5 completed ?

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, July 1
Started and completed in July
Transferred to Packing Department in July
Inventory in process, July 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
Direct Materials Conversion
Total costs for July in Roasting Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs assigned to production:
Direct Materials Conversion Total
Inventory in process, July 1 $
Costs incurred in July
Total costs accounted for by the Roasting Department $
Costs allocated to completed and partially completed units:
Inventory in process, July 1 balance $
To complete inventory in process, July 1 $ $
Cost of completed July 1 work in process $
Started and completed in July
Transferred to Molding Department in July $
Inventory in process, July 31
Total costs assigned by the Roasting Department $

Feedback

1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

2. Assuming that the July 1 work in process inventory includes $22,120 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit Increase $
Change in conversion cost per equivalent unit Decrease $

In: Accounting

Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by...

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
July 1 Bal., 5,800 units, 3/5 completed 13,688
31 Direct materials, 261,000 units 548,100 561,788
31 Direct labor 104,900 666,688
31 Factory overhead 26,180 692,868
31 Goods transferred, 261,000 units ?
31 Bal., ? units, 4/5 completed ?

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, July 1
Started and completed in July
Transferred to Packing Department in July
Inventory in process, July 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
Direct Materials Conversion
Total costs for July in Roasting Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs assigned to production:
Direct Materials Conversion Total
Inventory in process, July 1 $
Costs incurred in July
Total costs accounted for by the Roasting Department $
Costs allocated to completed and partially completed units:
Inventory in process, July 1 balance $
To complete inventory in process, July 1 $ $
Cost of completed July 1 work in process $
Started and completed in July
Transferred to Molding Department in July $
Inventory in process, July 31
Total costs assigned by the Roasting Department $

Feedback

1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

2. Assuming that the July 1 work in process inventory includes $11,600 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit Increase $
Change in conversion cost per equivalent unit Decrease $

In: Accounting

Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by...

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
July 1 Bal., 7,300 units, 3/5 completed 19,126
31 Direct materials, 328,500 units 755,550 774,676
31 Direct labor 158,400 933,076
31 Factory overhead 39,636 972,712
31 Goods transferred, 329,000 units ?
31 Bal., ? units, 4/5 completed ?

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, July 1
Started and completed in July
Transferred to Packing Department in July
Inventory in process, July 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
Direct Materials Conversion
Total costs for July in Roasting Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs assigned to production:
Direct Materials Conversion Total
Inventory in process, July 1 $
Costs incurred in July
Total costs accounted for by the Roasting Department $
Costs allocated to completed and partially completed units:
Inventory in process, July 1 balance $
To complete inventory in process, July 1 $ $
Cost of completed July 1 work in process $
Started and completed in July
Transferred to Molding Department in July $
Inventory in process, July 31
Total costs assigned by the Roasting Department $

Feedback

1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

2. Assuming that the July 1 work in process inventory includes $16,060 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit Increase $
Change in conversion cost per equivalent unit Decrease $

In: Accounting

Direct Materials Variances The following data relate to the direct materials cost for the production of...

Direct Materials Variances

The following data relate to the direct materials cost for the production of 2,500 automobile tires:

Actual: 48,200 lbs. at $1.75 per lb.
Standard: 46,800 lbs. at $1.7 per lb.

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.

Direct Materials Price Variance $
Direct Materials Quantity Variance $
Total Direct Materials Cost Variance $

b. The direct materials price variance should normally be reported to the  . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the  . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the  .




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 $13.2
Standard labor time per unit 20 min.
Standard number of lbs. of brass 1.8 lbs.
Standard price per lb. of brass $11.25
Actual price per lb. of brass $11.5
Actual lbs. of brass used during the week 11,124 lbs.
Number of units produced during the week 6,000
Actual wage per hour $13.6
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

Imagine the year is 2018, long before COVID-19 . Your family has started a new venture:...

Imagine the year is 2018, long before COVID-19 . Your family has started a new venture: operating a car wash near a popular lakeside resort, just outside of Prince George. There are many other car wash ventures nearby, and there seem to be new ventures opening and closing all the time. You can see that the customers care only about finding the cheapest price for car washes; they do not care which car wash they use. Your family purchased the equipment and the building for the car wash. You were able to spend $1,000 of your savings to go towards this purchase. To cover the rest of this expense, you took out a small business loan. The cost of the loan comes to $15 per day for the next 3 years. Your venture must hire labor and purchase cleaning solutions, car wax, etc. to operate the car wash. After some research you have figured out that the cost for labor and supplies is as follows: Number of car washes sold per day Total cost for labour and supplies 1 $10.67 2 $12.67 3 $16.00 4 $20.67 5 $26.67 6 $34.00 7 $42.67 8 $52.67 9 $64.00 10 $76.67 11 $90.67 12 $106.00 13 $122.67 14 $140.67 15 $160.00 16 $180.67 17 $202.67 18 $226.00 19 $250.67 20 $276.67 ECON 201 Introduction to Microeconomics 2 • When the lakeside resort is open, you observe that you can charge a price of $15.00 per car wash. • When the resort is closed, the demand for car washes is much lower. You are only able to charge a price $6 per car wash. Right now the resort is open. Currently you are selling 17 car washes per day. Your family wants your advice. Prepare a 1-2 page report to advise your family what to do now AND what to do when the resort is closed. Use the report to help them understand why they should follow your advice. Remember that this report should be written as if it is advice to your family, and it must show your family how you came up with the advice. What do you suggest, and why do you make the suggestions you do?

In: Economics

Grainy Goodness Company manufactures granola cereal by a series of three processes, beginning materials such as...

Grainy Goodness Company manufactures granola cereal by a series of three processes, beginning materials such as oats, sweeteners, and nuts being introduced in the Mixing Department. From the Mixing Department, the materials pass through the Baking and Packaging departments, emerging as boxed granola cereal ready for shipment to retail outlets. Direct materials are added at the beginning of each process, and conversion costs are incurred evenly throughout production in each department.

During March, the President and sole stockholder, Jonathan Groat, reviewed the Cost of Production Report for the Mixing Department. He is concerned that the Mixing Department may not be operating efficiently, and asks for your help.

Required:
1. Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0".*
2. On the February Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production panel.*
3. On the March Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel.*
4. After reviewing your work on the February Cost Analysis and March Cost Analysis panels, assist Jonathan Groat in evaluating the Mixing Department’s performance by answering the questions on the Mixing Dept. Evaluation panel.
5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles.
*Round your per-unit computations to the nearest cent, if required.

Required.

GRAINY GOODNESS COMPANY
Cost of Production Report-Mixing Department
For the Month Ended March 31
UNITS Whole Units Equivalent Units
Direct Materials Conversion
Units charged to production:
Inventory in process, March 1 2,000
Received from materials storeroom 38,000
Total units accounted for by the Mixing Department 40,000
Units to be assigned costs:
Inventory in process, March 1 (40% completed) 2,000
Started and completed in March 35,000 35,000 35,000
Transferred to Baking Department in March 37,000
Inventory in process, March 31 (80% completed) 3,000
Total units to be assigned costs 40,000
COSTS Costs
Direct Materials Conversion Total
Costs per equivalent unit:
Total costs for March in Mixing Department $41,420 $38,600
Total equivalent units ÷ ÷
Cost per equivalent unit
Costs assigned to production:
Inventory in process, March 1 $2,300 $640 $2,940
Costs incurred in March 80,020
Total costs accounted for by the Mixing Department $82,960
Cost allocated to completed and partially completed units:
Inventory in process, March 1-balance $2,940
To complete inventory in process, March 1 $0.00 $1,200 1,200
Cost of completed March 1 work in process $4,140
Started and completed in March $38,150 $35,000 73,150
Transferred to Baking Department in March
Inventory in process, March 31 $3,270 $2,400
Total costs assigned by the Mixing Department

In: Accounting

The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all...

The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.

Work in process, January 1, 10,200 units, 60% completed $118,524*
    *Direct materials (10,200 × $9.4) $95,880
    Conversion (10,200 × 60% × $3.7) 22,644
$118,524
Materials added during January from Weaving Department, 157,200 units $1,485,540
Direct labor for January 264,298
Factory overhead for January 323,030
Goods finished during January (includes goods in process, January 1), 159,000 units —
Work in process, January 31, 8,400 units, 20% completed —

a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places.

Karachi Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1
Received from Weaving Department
Total units accounted for by the Cutting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, January 1
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total units to be assigned cost
Cost Information
Cost per equivalent unit:
Direct Materials Conversion
Total costs for January in Cutting Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs assigned to production:
Direct Materials Conversion Total
Inventory in process, January 1 $
Costs incurred in January
Total costs accounted for by the Cutting Department $
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance $
To complete inventory in process, January 1 $ $
Cost of completed January 1 work in process $
Started and completed in January $
Transferred to finished goods in January $
Inventory in process, January 31
Total costs assigned by the Cutting Department $

Feedback

a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complete to transfer to the next department? Did these units require more material cost or more conversion cost? How much, in terms of cost, had been done to these units in the prior period? In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. When are materials added in the process? How complete are the units in ending inventory with respect to materials? How compete are the units in ending inventory with respect to conversion? Materials and conversion cost needs to be allocated among the equivalent units. Are the number of equivalent units the same for materials and conversion?

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit Increase $
Change in conversion cost per equivalent unit Increase $

In: Accounting

Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for...

Cost of Production Report

The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.

Work in process, January 1, 14,200 units, 60% completed $175,228*
    *Direct materials (14,200 × $9.4) $133,480
    Conversion (14,200 × 60% × $4.9) 41,748
$175,228
Materials added during January from Weaving Department, 218,800 units $2,078,600
Direct labor for January 488,115
Factory overhead for January 596,585
Goods finished during January (includes goods in process, January 1), 221,400 units —
Work in process, January 31, 11,600 units, 35% completed —

a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places.

Karachi Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1
Received from Weaving Department
Total units accounted for by the Cutting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, January 1
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total units to be assigned cost
Cost Information
Costs per equivalent unit:
Direct Materials Conversion
Total costs for January in Cutting Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs assigned to production:
Direct Materials Conversion Total
Inventory in process, January 1 $
Costs incurred in January
Total costs accounted for by the Cutting Department $
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance $
To complete inventory in process, January 1 $ $
Cost of completed January 1 work in process $
Started and completed in January $
Transferred to finished goods in January $
Inventory in process, January 31
Total costs assigned by the Cutting Department $

Feedback

a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complete to transfer to the next department? Did these units require more material cost or more conversion cost? How much, in terms of cost, had been done to these units in the prior period? In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. When are materials added in the process? How complete are the units in ending inventory with respect to materials? How compete are the units in ending inventory with respect to conversion? Materials and conversion cost needs to be allocated among the equivalent units. Are the number of equivalent units the same for materials and conversion?

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit Increase $
Change in conversion cost per equivalent unit Increase $

Feedback

In: Accounting

Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant Carpet Company uses a...

Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant Carpet Company uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered job cost sheet. If the offer is accepted, a number is assigned to the job and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $ $3,430 to carpet the consulting firm’s newly leased office. The estimate was based on the following data:

Estimated direct materials:
40 sq. ft. at $35 per sq. ft. $ 1,400
Estimated direct labor:
20 hours at $30 per hour 600
Estimated factory overhead (75% of direct labor cost) 450
Total estimated costs $2,450
Markup (40% of production costs) 980
Total estimate $3,430

On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation was completed on October 10.

The related materials requisitions and time tickets are summarized as follows:

Materials Requisition No. Description     Amount
112 20 sq. ft. at $35 $700
114 24 sq. ft. at $35 840
Time Ticket No. Description     Amount
H10 10 hours at $30 $300
H11 14 hours at $30 420

Required:

Enter amounts as positive numbers.

1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer.

2. Record the costs incurred, and complete the job order cost sheet.

JOB ORDER COST SHEET
Customer Jackson Consulting Date October 1
Date wanted October 10
Date completed October 10
Job. No.
ESTIMATE
Direct Materials Direct Labor Summary
Amount Amount Amount
40 sq. ft. at $35 20 Hours at $30 Direct Materials
Direct Labor
Factory Overhead
Total Total Total cost
ACTUAL
Direct Materials Direct Labor Summary
Mat. Req. No. Description Amount Time Ticket No. Description Amount Item Amount
310 20 sq. ft. at $35 H10 10 Hours at $30 Direct Materials
Direct Labor
312 24 sq. ft. at $35 H11 14 Hours at $30 Factory Overhead
Total Total Total Cost

Feedback

What is the best explanation for the variances between actual costs and estimated costs. (For this purpose, assume that 4 square feet of materials were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work.)

The direct materials cost exceeded the estimate by $140 because 4 square feet of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor.

Management didn't provide enough direction to complete tasks on budget.

The direct materials cost exceeded the estimate by $105 because 3 square feet of materials were spoiled.

The direct labor cost exceeded the estimate by $360 because an additional 4 hours of labor were used by an inexperienced employee.

Select the correct answer from the above choices.

In: Accounting