Accounting6. Answer incorrect box for thumbs upCullumber's Style manufactures dining room tables for both home andrestaurant locations. Mark Donald, the company's controller,developed the following standard costs for each 5-foot table.Ms.Donald developed these standards based on the companymanufacturing 1,340 tables per month.Standard PriceStandard QuantityStandard CostDirect materials$50.00 per linear foot5.00 linear feet$250.00Direct labor18.50 per DLH12.00 DLH222.00Variable overhead16.20 per DLH12.00 DLH194.40Fixed overhead28.20 per DLH12.00 DLH338.40Total standard cost per table$1,004.80The company actually manufactured 1,240 tables during themonth.6,040 linear feet of direct materials were purchased during themonth at a total cost of $258,512.5,540 linear feet of direct materials were used to manufacturethe tables.15,540 direct labor hours were worked at a total cost of$243,720.●Actual variable overhead was $266,000.●Actual fixed overhead was $411,900.Calculate the direct material price variance for the month. (Ifvariance is zero, select "Not Applicable" and enter O for theamounts.)39888FavorableDirect material price variance

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Description: Accounting6. Answer incorrect box for thumbs upCullumber's Style manufactures dining room tables for both home andrestaurant locations. Mark Donald, the company's controller,developed the following standard costs for each 5-foot table.Ms.Donald deve

Direct material price variation (also known as direct material spending/rate variance) is the…

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ark Donald, the company's controller standard costs for each 5-foot table a standards based on the company

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 54P: Preparation of Income Statement: Manufacturing Firm Laworld Inc. manufactures small camping tents....

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Preparation of Income Statement: Manufacturing Firm Laworld Inc. manufactures small camping tents. Last year, 200,000 tents were made and sold for 60 each. Each tent includes the following costs: The only selling expenses were a commission of 2 per unit sold and advertising totaling 100,000. Administrative expenses, all fixed, equaled 300,000. There were no beginning or ending finished goods inventories. There were no beginning or ending work-in-process inventories. Required: 1. Calculate the product cost for one tent. Calculate the total product cost for last year. 2. CONCEPTUAL CONNECTION Prepare an income statement for external users. Did you need to prepare a supporting statement of cost of goods manufactured? Explain. 3. CONCEPTUAL CONNECTION Suppose 200,000 tents were produced (and 200,000 sold) but that the company had a beginning finished goods inventory of 10,000 tents produced in the prior year at 40 per unit. The company follows a first-in, first-out policy for its inventory (meaning that the units produced first are sold first for purposes of cost flow). What effect does this have on the income statement? Show the new statement.
Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.
Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-15 Refer to the information for Barnard Company on the previous page. The cost of goods sold per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
ABC Company has established standard costs for the furniture department, in which one (1) size of the cabinetis made. The standard costs of producing one (1) of these cabinets are shown below:Direct material (Lumber)50 board feet at P4.00 per foot P200.00Labor standard8 hours at P10.00 per hour 80.00Variable overhead8 hours at P5.00 per hour 40.00Fixed overhead8 hours at P3.00 per hour 24.00Total P344.00During January 201A, 500 cabinets were produced. The actual cost of operations during the month are shownbelow:Direct materials purchased (30,000 boardfeet at P4.10 per board foot)P123,000Direct materials used (24,000 board feet)Direct labor (4,200 hours at P9.50 per hour) 39,900Total variable overhead cost 22,000Total fixed overhead cost 11,000The budgeted overhead for the furniture department based on a normal monthly activity of 4,500 hours isP36,000, of which P22,500 is variable and P13,500 is fixed overhead. Requirements 2. Labor rate variance (LRV) & Labor efficiency variance…
These data relates to Judy Company’s July 2020 operations: Materials, beginning P 7,000 Materials, Ending P9,000 WIP, Beginning 7,500 WIP, Ending 3,500 Finished Goods, beg. 10,000 Finished Goods, End. 12,000 Materials used 46,800 Direct Expenses 400 Selling and general expenses 6,700 Direct Labor 8,000 Factory overhead is applied at the rate of 80% of direct labor cost. Required: Compute for the following (Show your solution) : 1. Cost of materials purchased 2. Cost of goods manufactured 3. Cost of goods sold and 4. Conversion Cost
S3. Account Bismarck Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Bismarck uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Model ZM Model DS Direct materials $ 45 $ 20 Direct labor 32 15 Category Estimated Cost Cost Driver Use of Cost Driver Unit level $ 27,000 Number of units ZM: 2,400 units; DS: 9,600 units Batch level 50,000 Number of setups ZM: 25 setups; DS: 25 setups Product level 90,000 Number of TV commercials ZM: 15; DS: 10 Facility level 300,000 Number of machine hours ZM: 500 hours; DS: 1,000 hours Total $ 467,000 Bismarck’s facility has the capacity to operate 4,500 machine hours per month. Required Compute the cost per unit for each product. The current market price for products comparable to Model ZM is $200 and for DS is $86. If Bismarck sold all of its products at the market prices, what was its profit or loss for the previous month? A…
Mandy Co. adopted a standard cost system several years ago. The standard costs for theprime costs of its single product follow: Material: 10 kg @ P4.50/kg P45.00Labor: 6 hours @ P8.50/hr P51.00 The following operating data were taken from the records for November:Units completed 5,800 unitsBudgeted output 6,000 unitsMaterials purchased 60,000 kgTotal actual labor costs P306,600Actual hours of labor 36,500 hoursMaterial usage variance P2,250 unfavorableTotal material variance P450 unfavorable Required: Compute for the following:1. actual material used 3. Labor rate variance2. actual cost paid per kilogram 4. Labor efficiency variance
Superior Company, which started business on April 1, uses a standard cost system in accounting for manufacturing costs. The standard costs for a unit of its product are: Materials: 2 units at P3 per kilo P6.00 Labor: 1 hour at P4 per hour 4.00 Factory overhead: 75% of direct labor cost 3.00 = P13.00 Following data were gathered from Superior's records for April: Units produced 5,000 Units sold 4,000 Sales P100,000 Purchases (11,000 kilos) P 38,500 Materials price variance (applicable to April purchases) P550 unfavorable Actual quantity of materials used 10,500 kilos Actual labor hours worked 4,800 hours Direct labor rate variance P800 favorable Factory overhead total variance P500 unfavorable a. The material quantity variance for April was ____________. b. The direct labor efficiency variance for April was ____________. c. The actual factory overhead for April was _______________.
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.81 Variable cost per cake Ingredients 2.33 Direct labor 1.19 Overhead (box, etc.) 0.16 Fixed cost per month $ 2,937.70 Required: . Assume that Cove sold 320 cakes last month. Calculate the company’s degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The 20X6 data that follow pertain to Rays, a manufacturer of swimming goggles. Rays had no beginning inventories in January 20X6. Selling price per unit $35.00Variable manufacturing expense per unit $15.00Sales commission expense per unit $5.00Fixed manufacturing overhead $2,000,000Fixed operating expense $250,000# of goggles produced 200,000# of goggles sold 185,000 Required:a) Calculate the following for Raysi) The total cost per unitii) The value of ending inventories using marginal costingiii) The value of ending inventories using total costing b) Prepare a variable costing (contribution margin) income statement for Rays for the year ended December 31, 20X6. c) Rays marketing vice president believes a new sales promotion that costs $150,000would increase sales to 200,000 goggles. Should the company go ahead with the promotion? Give your reason.
Please answer only E-1, E2 AND F1 Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the company's normal volume of 6,000 units per month are shown in the following table. Unit manufacturing costs Variable materials $ 59 Variable labor 84 Variable overhead 34 Fixed overhead 69 Total unit manufacturing costs $ 246 Unit marketing costs Variable 34 Fixed 79 Total unit marketing costs 113 Total unit costs $ 359 Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of $388 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself. Required: a. Market research estimates that volume could be…
Abey Kuruvilla, of Parkside Plumbing, uses 1,200 ofa certain spare part that costs $25 for each order, with an annualholding cost of $24.a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100. b) Identify the economic order quantity and consider the impli-cations for making an error in calculating economic order quantity.