mg cesErie Company manufactures a mobile fitness device called the Jogging Mate. The company usesstandards to control its costs. The labor standards that have been set for one Jogging Mate are asfollows:StandardHours30 minutesStandard Rateper Hour$ 6.20StandardCost$ 3.10During August, 10,280 hours of direct labor time were needed to make 19,300 units of the JoggingMate. The direct labor cost totaled $62,708 for the month.Required:1. What is the standard labor-hours allowed (SH) to makes 19,300 Jogging Mates?2. What is the standard labor cost allowed (SH x SR) to make 19,300 Jogging Mates?3. What is the labor spending variance?4. What is the labor rate variance and the labor efficiency variance?5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August,the company incurred $51,400 in variable manufacturing overhead cost. Compute the variableoverhead rate and efficiency variances for the month.(For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable,"U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positivevalues. Do not round intermediate calculations.)1. Standard labor-hours allowed2. Standard labor cost allowed3. Labor spending variance4. Labor rate variance4. Labor efficiency variance< Prev4 of 6Next >CreDOresu

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings 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?
Salley is developing material and labor standards for her company. She finds that it costs $0.55 per pound of material per widget. Each widget requires 6 pounds of material per widget. Salley is also working with the operations manager to determine what the standard labor cost is for a widget. Upon observation, Salley notes that it takes 3 hours in the assembly department and 1 hour in the finishing department to complete one widget. All employees are paid $10.50 per hour. A. What is the standard materials cost per unit for a widget? 8. What is the standard labor cost per unit for a widget?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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?
Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information: Required: 1. Calculate the cost per treatment for April. 2. Calculate the cost of services sold for April. 3. What if Lising found a way to reduce overhead costs by 20 percent? How would this affect the profit per treatment?
Erle Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: standard Hours 30 minutes Standard Rate per Hour $ 5.80 standard Cost $ 2.90 During August, 10,310 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $58,767 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,200 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,200 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company Incurred $51,550 In variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, Indicate…
Erle Company manufactures a moble fitness device called the JoggIng Mate. The company uses standards to control Its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Rate Standard per Hour $6.00 Standard Hours Cost 27 minutes $2.70 During August, 9,690 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $56,202 for the month. Requlred: 1. What Is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 20,000 Jogging Mates? 3. What Is the labor spending varlance? 4. What is the labor rate varlance and the labor efficiency varlance? 5. The budgeted varlable manufacturing overhead rate is $4.10 per direct labor-hour. During August, the company Incurred $48,450 in varlable manufacturing overhead cost. Compute the varlable overhead rate and efficiency varlances for the month. (For requlrements 3 through 5, Indicate the…
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours 27 minutes Standard Rate per Hour $6.00 During August, 9,540 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $56,286 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,600 Jogging Mates? 3. What is the labor spending variance? Standard Cost $2.70 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $47,700 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate…
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours 24 minutes Standard Rate per Hour $6.40 During August, 8,610 hours of direct labor time were needed to make 19.900 units of the Jogging Mate. The direct labor cost totaled $53,382 for the month. Standard Cost $ 2.56 Required: 1. What is the standard labor-hours allowed (SH) to makes 19,900 Jogging Mates? 2. What is the standard labor cost allowed (SH SR) to make 19,900 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $44,772 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate the…

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