Consider the following data: Activity Budgeted OH Materials Handling P 10,000 Setup Costs P 20,000 Quality Control P 30,000 No. of parts No. of setups No. of batches Units produced Direct Materials Direct Labor Cost driver No. of parts No. of setups No. of batches Product A 300 150 600 800 P 45 per unit P 28 per unit Allocation Rate P 20 per part P 50 per setup P 40 per batch Product B 200 250 150 500 P 30 per unit P 20 per unit

Consider the following data: Activity Budgeted OH Materials Handling P 10,000 Setup Costs P 20,000 Quality Control P 30,000 No. of parts No. of setups No. of batches Units produced Direct Materials Direct Labor Cost driver No. of parts No. of setups No. of batches Product A 300 150 600 800 P 45 per unit P 28 per unit Allocation Rate P 20 per part P 50 per setup P 40 per batch Product B 200 250 150 500 P 30 per unit P 20 per unit

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...

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Suppose that Motorola uses the normal distribution to determine the probability of defects and the number of defects in a particular production process. Assume that the production process manufactures items with a mean weight of 10 ounces. Calculate the probability of a defect and the suspected number of defects for a 1,000-unit production run in the following situations. a. The process standard deviation is 0.15, and the process control is set at plus or minus one standard deviation. Units with weights less than 9.85 or greater than 10.15 ounces will be classified as defects. b. Through process design improvements, the process standard deviation can be reduced to 0.05. Assume that the process control remains the same, with weights less than 9.85 or greater than 10.15 ounces being classified as defects. c. What is the advantage of reducing process variation, thereby causing process control limits to be at a greater number of standard deviations from the mean?
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The following computer printout was generated, using regression, for use in estimating maintenance costs. Intercept 8300 X Variable 1 37 Multiple R 0.9500 R Square 0.9025 Activity variable machine hours An estimate of maintenance costs at an activity level of 100 machine hours would be:
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Formidable Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @ $6 per machine hour Fixed overhead 4 machine hours @ $10 per machine hour Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost $540,000 Actual fixed overhead cost $810,000 Using the two variance method, what is the volume variance? a.$6,000 (F) b.$40,000 (F) c.$40,000 (U) d.$6,000 (U)
The standard and actual cost data of M/s. ABC Company are as follows:Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000Required:A) Calculate;i. Material Price Variance and Material Quantity Varianceii. Labor rate variance and Labor time varianceiii. Overhead VarianceB) Give journal entries to record the above information and close the variance accounts.
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Please show work Cookie Business Actual Total Cost of Direct Materials $ 225,000 Standard Total Cost of Direct Materials $ 224,800 Actual Materials Used 30 Standard Materials Used 31 Actual Direct Labor Rate $ 15.50 Standard Labor Rate $ 15.00 Actual Hours Worked 45 Standard Hours Worked 40 Amount Favorable/ Unfavorable Calculate Materials Variances: Materials Price Variance $ ??? ??? Materials Quantity Variance ?? ??? Calculate Labor Variances: Labor Rate Variance $ ?? ?? Labor Efficiency Variance $ ?? ???
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Estimated costs for activity cost pools and other item(s) are as follows: Machining $500000 Assembling 270000 Advertising 450000 Inspecting and testing 245000 Total estimated overhead is $1220000. $1015000. $1465000. $770000.
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Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1)StandardQuantityor Hours (2)StandardPriceor Rate StandardCost(1) × (2) Direct materials 6 pounds $3 per pound $ 18.00 Direct labor 0.8 hours $15 per hour 12.00 Variable manufacturing overhead 0.8 hours $3 per hour 2.40 Total standard cost per unit $32.40 TotalStandardCost* Variances Reported Priceor Rate Quantity orEfficiency Direct materials $405,000 $6,900 F $9,000 U Direct labor $ 270,000 $14,550 U $21,000 U Variable manufacturing overhead $54,000 $1,300 F $? U *Applied to Work in Process during the period. The company’s manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. Required: How many units were produced last…