PRESENT YOUR ANSWER AS: 10 FAVORABLE OR 10 UNFAVORABLE.Linis Company produces a commercial cleaning compoundknown as Zide. The direct materials and direct labor standardsfor one unit of Zide are as follows:StandardStandardStandardQtyPriceCostDirect4.6 Ibs.P2.50/lb.P11.50materialsDirect labor0.2 hr.P35/hr.7.00During the most recent month, the following activity wasrecorded:[a] Twenty thousand pounds of material were purchased at acost of P2.35 per pound.[b] All of the materials purchased was used to produce 4,000units of Zide.[c] 750 hours of direct labor time were recorded at a total laborcost of P30,375.Compute for the direct labor efficiency variance. Indicatewhether favorable or unfavorable.

Direct labor efficiency variance is variance based on standard labor hours allowed for actual…

Direct 4.6 lbs. P2.50/lb. P11.50 materials Direct labor 0.2 hr. P35/hr. 7.00 ng the most recent month, the following activity rded: wenty thousand pounds of material were purchased a ost of P2.35 per pound. All of the materials purchased was used to produce 4, nits of Zide. 50 hours of direct labor time were recorded at a total la ost of P30,375.

Direct 4.6 lbs. P2.50/lb. P11.50 materials Direct labor 0.2 hr. P35/hr. 7.00 ng the most recent month, the following activity rded: wenty thousand pounds of material were purchased a ost of P2.35 per pound. All of the materials purchased was used to produce 4, nits of Zide. 50 hours of direct labor time were recorded at a total la ost of P30,375.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 18E: For E2-17, prepare any journal entries that would have been different if the only trigger points had...

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Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.90 feet at $4.60 per foot $ 8.74 Actual: 1.85 feet at $5.00 per foot $ 9.25 Direct labor: Standard: 0.95 hours at $19.00 per hour 18.05 Actual: 1.00 hours at $18.50 per hour 18.50 Variable overhead: Standard: 0.95 hours at $7.00 per hour 6.65 Actual: 1.00 hours at $6.60 per hour 6.60 Total cost per unit $ 33.44 $ 34.35 Excess of actual cost over standard cost per unit $ 0.91 The production superintendent was pleased when he saw this report and commented: “This $0.91 excess cost is well within the 4 percent limit management has set for acceptable variances. It's obvious…
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Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not “ideal” at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb. 63¢ per lb. Plastic 12 oz. $1.00 per lb. Rubber 4 oz. 88¢ per lb. Direct labor Item Per unit Cost Labor 15 min. $8.00 per hr. Predetermined overhead rate based on direct labor hours = $4.68 The January figures for purchasing, production, and labor are: The company purchased 231,800 pounds of raw materials in January at a cost of 78¢ a pound. Production used 231,800 pounds of raw materials to make 117,000 units in January. Direct labor spent 18 minutes on each product at a cost of $7.70 per hour. Overhead costs for January totaled $71,489 variable and $70,000 fixed. Answer the…
Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not “ideal” at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb. 63¢ per lb. Plastic 12 oz. $1.00 per lb. Rubber 4 oz. 88¢ per lb. Direct labor Item Per unit Cost Labor 15 min. $8.00 per hr. Predetermined overhead rate based on direct labor hours = $4.68 The January figures for purchasing, production, and labor are: The company purchased 231,800 pounds of raw materials in January at a cost of 78¢ a pound. Production used 231,800 pounds of raw materials to make 117,000 units in January. Direct labor spent 18 minutes on each product at a cost of $7.70 per hour. Overhead costs for January totaled $71,489 variable and $70,000 fixed. Answer the following questions about standard costs. What is…