19. Flying High Company manufactures model airplanes. During the month, it manufactured 10,000airplanes. Each one used an average of 6.5 direct lebor hours and an average of 1.5 sheets ofaluminum. It nomally manufactures 7,500 airplanes. Materials and labor standards for makingthe airplanes areDirect Materials (1 sheet of aluminum S10.00) $10.00Direct Materials (other accessories $8.75) 8.75Direct Labor (6 hours $7.00) 42.00Compute the standard number of sheets of aluminum allowed for a volume of 10,000 airplanesO7,500 shostsO 0 etO 1LDe sheetsO I5.000 shects20. Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgetedfxed costs of $600,000. The standard allows one direct labor hour per unit. Last year, Crawfordproduced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded212,000 actual hours of direct labor.What is Crawford's fixed overhead spending variance for last year?O s000 uO 000FO s36,000 u

Direct materials and direct labor are the components which are used in the manufacturing of goods,…

Answered: 19. Flying High Company manufactures…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the manufacturing of 360,000 small blankets and 120,000 large blankets. What is the predetermined overhead rate if a small blanket takes 2 hours of direct labor and a large blanket takes 3 hours of direct labor?
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
Flying High Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each one used an average of 6.5 direct labor hours and an average of 1.5 sheets of aluminum. It normally manufactures 7,500 airplanes. Materials and labor standards for making the airplanes are: Direct Materials (1 sheet of aluminum @ $10.00) $10.00 Direct Materials (other accessories @ $8.75) 8.75 Direct Labor (6 hours @ $7.00) 42.00 Compute the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes. a.15000 sheets b.11250 sheets c.7500 sheets d.10000 sheets
Anemone Company produces picture frames. During the year, 200,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $3) $6.00 Direct labor (2 hours @ $12) $24.00 Anemone purchased and used 600,000 pieces of wood at $4.00 each, and its actual labor hours were 320,000 hours at a wage rate of $13. What is Anemone's labor rate variance? a. $450,000 F b. $320,000 U c. $445,000 U d. $660,500 F
James Company manufactures t-shirts. During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour. The materials and labor standards for manufacturing the t-shirts are as follows: Line Item Description Cost Direct materials (6 yards of fabric @ $3.00 per yard) $18.00 Direct labor (2.4 hours @ $8.00 per hour) 19.20 It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.What is James's materials usage variance? a. $300,000 U b. $250,000 U c. $300,000 F d. $250,000 F
Pentyl Company manufactures t-shirts. During the year, it manufactured 100,000 t-shirts, using 3 hours of direct labor at a rate of $7 per hour. The materials and labor standards for manufacturing the t-shirts are as follows: Direct materials (5 yards of fabric @ $4 per yard) $20 Direct labor (2 hours @ $8.00 per hour) 16 It took Pentyl 600,000 yards at $3.50 per yard to make the 100,000 t-shirts. What is the entry to record the issuance and usage of materials? a. debit Work in Process, 6,500,000 debit Materials Usage Variance, 250,000 credit Materials, 5,400,000 b. debit Work in Process, 3,200,000 credit Materials Usage Variance, 430,000 credit Materials, 3,560,000 c. debit Work in Process, 2,000,000 debit Materials Usage Variance, 400,000 credit Materials, 2,400,000 d. debit Work in Process, 8,100,000 debit Materials Usage Variance, 400,000 credit Materials, 1,500,000
Hayden Co. manufactures baseball caps that sell for $40 each. Each cap uses $14 in direct materials and $5 in direct labor per unit. Hayden has two activities: Cutting, which is applied at the rate of $5 per machine hour, and , Assembly which is applied at the rate of $25 per batch. This month, Hayden made 400 caps, using 1,000 machine hours in 40 batches. What is the total manufacturing cost for one cap? $21 $8 $35 $6 < is this?
Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit. Materials $ 36.00 Labor 14.00 Variable overhead 4.00 Fixed overhead ($1,926,000 per year; 107,000 units per year) 18.00 Total $ 72.00 Simpson Company has approached Andreasen with an offer to buy 9,100 thermostats at a price of $60 each. The regular price is $100. Andreasen has the capacity to produce the 9,100 additional units without affecting its current production of 107,000 units. Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2.00 per unit material cost. The labor cost of affixing the label will be the same as for the current models. The Simpson order will also require a one-time rental of packaging equipment for $34,000. Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the year. b. Do you agree with the decision to accept the special order? c.…

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