Exercise 10-2 Direct Labor Variances (LO10-2) SkyChefs, Inc, prepares in fight meals for a number of major alirlines. One of the company's products is grilled saimon in dil sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,400 of these meals using 1700 direct labor hours. The company paid its direct labor workers a total of $17000 for this work, or $10.00 per hour According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $9.40 per hour. Required 1. What is the standard labor-hours allowed (SH) to prepare 4,400 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 4,400 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance?

Exercise 10-2 Direct Labor Variances (LO10-2) SkyChefs, Inc, prepares in fight meals for a number of major alirlines. One of the company's products is grilled saimon in dil sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,400 of these meals using 1700 direct labor hours. The company paid its direct labor workers a total of $17000 for this work, or $10.00 per hour According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $9.40 per hour. Required 1. What is the standard labor-hours allowed (SH) to prepare 4,400 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 4,400 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance?

Name: Exercise 10-2 Direct Labor Variances (LO10-2)SkyChefs, Inc, prepares
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Description: Exercise 10-2 Direct Labor Variances (LO10-2)SkyChefs, Inc, prepares in flight meals for a number of major airlines. One of the company's products is griled salmon in dil saucewith baby new potatoes and spring vegetables. During the most recent week

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 4PB: Factory overhead cost variance report Feeling Better Medical Inc., a manufacturer of disposable...

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Factory overhead cost variance report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 30,000 hours. During October, the department operated at 28,500 hours, and the factory overhead costs incurred were indirect factory wages, 234,000; power and light, 178,500; indirect materials, 50,600; supervisory salaries, 126,000; depreciation of plant and equipment, 70,000; and insurance and property taxes, 44,000. Instructions Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500 hours.
xercise 9-2 (Static) Prepare a Report Showing Revenue and Spending Variances [LO9-2] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 8,000 Revenue ($4.00q) $ 32,000 Expenses: Packing supplies ($0.50q) 4,000 Oyster bed maintenance ($3,200) 3,200 Wages and salaries ($2,900 + $0.30q) 5,300 Shipping ($0.80q) 6,400 Utilities ($830) 830 Other ($450 + $0.05q) 850 Total expense 20,580 Net operating income $ 11,420 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 8,000 Revenue $ 35,200 Expenses: Packing supplies 4,200 Oyster bed maintenance 3,100 Wages and salaries 5,640 Shipping 6,950 Utilities 810 Other 980 Total expense 21,680…
E8-17 Calculating factory overhead: two variances Munoz Manufacturing Co. normally produces 11,000units of product X each month. Each unit requires 2.5hours of direct labor, and factory overhead is applied on a direct labor hour basis. Fixed costs and variable costs in factory overhead at the normal capacity are $2.25and $1.25per direct labor hour, respectively. Cost and production data for May follow: Production for the month. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.500units Direct labor hours used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..19,000hours Factory overhead incurred for: Variable costs . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .. $29,000 Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51,000 a. Calculate the flexible-budget variance. b. Calculate the production-volume variance. c. Was the total factory overhead under-or overapplied? By what amount?
14. Courington Detailing's cost formula for its materials and supplies is $2,090 per month plus $15 per vehicle. For the month of August, the company planned for activity of 89 vehicles, but the actual level of activity was 49 vehicles. The actual materials and supplies for the month was $2,660. The spending variance for materials and supplies in August would be closest to: Multiple Choice $765 F $765 U $165 U $165 F
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Exercise 16-46 (Algo) Fixed Cost Variances (LO 16-6) Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 126,000 liters at a budgeted price of $270 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials (2 pounds @ $17) $ 34 Direct labor (0.5 hours @ $50) 25 Variable overhead is applied based on direct labor hours. The variable overhead rate is $150 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $23 per unit. All non-manufacturing costs are fixed and are budgeted at $2.5 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $816,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year.…
Exercise 16-46 (Algo) Fixed Cost Variances (LO 16-6) Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 126,000 liters at a budgeted price of $270 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials (2 pounds @ $17) $ 34 Direct labor (0.5 hours @ $50) 25 Variable overhead is applied based on direct labor hours. The variable overhead rate is $150 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $23 per unit. All non-manufacturing costs are fixed and are budgeted at $2.5 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $816,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year.…
Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 6.50 pounds $ 1.90 per pound $ 12.35 Direct labor 0.30 hours $ 13.00 per hour $ 3.90 During the most recent month, the following activity was recorded: 20,500.00 pounds of material were purchased at a cost of $1.70 per pound. All of the material purchased was used to produce 3,000 units of Zoom. 800 hours of direct labor time were recorded at a total labor cost of $12,000. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no…
Exercise 10-3 Prepare a Report Showing Revenue and Spending Variances [LO10-3] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene OysteriaFlexible BudgetFor the Month Ended August 31 Actual pounds (q) 7,700 Revenue ($4.20q) $ 32,340 Expenses: Packing supplies ($0.35q) 2,695 Oyster bed maintenance ($3,000) 3,000 Wages and salaries ($2,300 + $0.40q) 5,380 Shipping ($0.55q) 4,235 Utilities ($1,250) 1,250 Other ($460 + $0.01q) 537 Total expense 17,097 Net operating income $ 15,243 The actual results for August appear below: Quilcene OysteriaIncome StatementFor the Month Ended August 31 Actual pounds 7,700 Revenue $ 26,700 Expenses: Packing supplies 2,865 Oyster bed maintenance 2,860 Wages and salaries 5,790 Shipping 3,965 Utilities 1,060 Other…
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