Direct Labor Variances

The following data relate to labor cost for production of 5,000 cellular telephones:

a. 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.

b. The employees may have been less-experienced or poorly trained, thereby resulting in a   labor rate than planned. The lower level of experience or training may have resulted in   efficient performance. Thus, the actual time required was   than standard.

Suppose firm A and firm B are the only two firms in an industry. Each firm’s Marginal Abatement cost functions is given by:

MACa = 200-Ea

MACb = 200-2Eb

Also, there are four people, each with marginal damage function:

MDi = 1/3Et , Where Et = Ea+Eb

a) What is the uncontrolled emission levels of each firm?

b) Find the aggregate MAC function

c) Find the aggregate MD function

d) Determine the socially optimal level of emissions ?t ∗ and the MD.

e) Suppose the government decided to use a fair standard that required each firm to produce half of the socially optimal emissions. What would be each firm’s MAC and total abatement cost?

f) Compute the total social cost.

Need answers in clear hand writing notes. If you can then attempt my questions other wise don't attempt my questions..

Manufacturing cost data for Sophia Company are presented below.

                                                                        Case A                  Case B                  Case C

Direct materials used                                         (a)                      $75,400               $130,000

Direct labor                                                  $ 57,000                    76,000                     (g)

Manufacturing overhead                                 46,500                    81,600                 102,000

Total manufacturing costs                             195,650                      (d)                     283,700

Work-in-process, 1/1/19                                    (b)                        16,500                     (h)

Total cost of work-in-process                        221,500                      (e)                      327,000

Work-in-process, 12/31/19                                (c)                          9,000                   80,000

Cost of goods manufactured                         180,275                      (f)                          (i)

Instructions

Indicate the missing amount for each letter (a) through (i).

Quikpak sells returnable containers to major food processors. The price received for the containers is $2 per unit. Of this amount $1.25 is profit contribution. Quikpak is considering an attempt to differentiate its product through quality improvement at a cost of $.05 per unit. Current profits are $40,000 on sales of 100,000 units.

(a) Assuming that average variable costs are constant at all output levels, find Quikpak‘s total cost function before the proposed change.

(b) Calculate the total cost function if the quality improvement is implemented.

(c) Calculate Quikpak‘s break-even output before and after the change, assuming it cannot increase its price.

(d) Calculate the increase in sales that would be necessary with the quality improvement to increase profits to $45,000.

Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. Units:

Units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion)

Started            300,000

Completed     ?

Units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion)

Costs:                                     Materials         Conversion     Total

beginning work in process     $ 6,080           $ 2,160           $ 8,240

current costs                         $220,875         $30,600          $251,475

total costs                               $226,955         $32,760          $259,715

The company uses FIFO inventory assumption.

Required: Prepare September cost report for the printing department to calculate the cost of units completed and transferred to the binding department, and the cost of ending work in process.

Huston Makena is the owner and CEO of H3 Solar Inc., a startup that makes and installs solar panels. In January, H3 Solar received 4 independent orders. The company applies overhead at a rate of $6 per direct labor hour. Direct labor wages average $10 per hour.

Fill in the blank

1. In comparing financial accounting with managerial accounting, managerial accounting

A.    Follows GAAP or IFRS reporting standards.

B.    Emphasizes timeliness and sub-unit reporting such as business units, divisions, departments.

C.    Reports to parties external to the company

D.    Emphasizes financial consequences of past activities

2. When production decreases

A.    Variable costs per unit decrease.

B.    Variable costs per unit increase.

C.    Total variable costs increase.

D.    Total variable costs decrease.

3. Which of the following is an indirect production cost for a company that produces ready-made prom dresses?

A. Cost of fabric

B. Cost of pearls and sequins

C. Salary of the dress designer

D. Wages of sewing workers

Direct Labor Variances

The following data relate to labor cost for production of 3,200 cellular telephones:

a. 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.

b. The employees may have been less-experienced or poorly trained, thereby resulting in a   labor rate than planned. The lower level of experience or training may have resulted in   efficient performance. Thus, the actual time required was   than standard.

Suppose a competitive firm’s production function is q = L 0.5K0.5 and the wage rate is w = $5 and the rental rate is r = $0.8

(a) If K is fixed at 25 units in the short-run, what is the short-run production function?

(b) What is the equation that determines how much labor the firm should hire to produce some quantity, q?

(c) Use your answer to (b) to derive the short-run total cost curve.

(d) What is the firm’s marginal cost curve? What is the firm’s average total cost curve?

(e) If the price of the firm’s product is $6, how many units should the firm choose to sell?

(f) What are its short-run profits?

Thanks for your help!