Grainger Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows; Direct Material $16 per Unit Direct Labor $25 per Unit Variable Overhead $6 per Unit Fixed Overhead $26,800 Selling expenses are $3 per unit and are all variable. Administrative expenses of $12,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory. A. Compute net income under i. Absorption Costing $ ii. Variable Costing B. Which costing method provide higher net income? By how much? The method provided more net income by $
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- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?Midrand Ltd manufactures a single product and makes use of a standard costing system. The following actual figures relate to April 2020: Purchases and issues of raw material: Material A at R0.55 per kg 40 000 kg Material B at R0.80 per kg 29 000 kg Direct labour at R2.10 per hour R 28 770 Manufacturing overheads:Variable R 7 832fixed R 14 200 Standard prime cost per unit is:Material A at R0.50 per kg R0,75Material B at R0.90 per kg R0.90 Direct labour at R2.20 per hour R1.10Standard prime cost of production R 2.75 • Raw material stock is valued at standard…Jasper Company makes a single product. Its standard costs per unit are as follows:Direct materials, 2 pounds @$4.50 $9Direct labour, 3 hours @$5 $15Overhead $10 per direct labour-hour (DLH)* $30Standard cost per unit $54 *Based on normal capacity of 50,000 units. $7 per DLH is variable.At the beginning of 2019, there were no inventories. During 2019, the following events occurred: 1. Direct labour was $790,750 for 151,000 DLH worked.2. Variable overhead incurred was $1,046,000.3. Fixed overhead was $490,000.4. Jasper produced 48,000 units. There were no unfinished goods or work in process (WIP) at the end of 2016. Required: 1. What was the total overhead spending variance (variable and fixed) for 2019?2. What was the fixed overhead volume variance for 2019?
- Jasper Company makes a single product. Its standard costs per unit are as follows:Direct materials, 2 pounds @$4.50 $9Direct labour, 3 hours @$5 15Overhead $10 per direct labour-hour (DLH)* 30Standard cost per unit $54*Based on normal capacity of 50,000 units. $7 per DLH is variable.At the beginning of 2019, there were no inventories. During 2019, the following events occurred:1.Direct labour was $790,750 for 151,000 DLH worked.2.Variable overhead incurred was $1,046,000.3.Fixed overhead was $490,000.4.Jasper produced 48,000 units. There were no unfinished goods or work in process(WIP) at the end of 20X6.Required1.What was the total overhead spending variance (variable and fixed) for 2019?2.What was the fixed overhead volume variance for 2019?Taunton Company uses the high-low method to estimate its cost function. The information for 2017 is provided below: Machine-hours Labor Costs Highest observation of cost driver 4,000 ���$332,000 Lowest observation of cost driver 3,000 $312,000 What is the estimated cost function for the above data? A. y = 332,000 + 83X B. y = 312,000 + 104X C. y = 92.00X D. y = 252,000 + 20.00XThe production department of Al Noor company provides you with specific cost details. The material used OMR 34,750, Direct labor hours used: 1200 Hours, direct wages OMR 25,000. Overhead Cost is 69,500. Using these data, compute overhead rate as a percentage of direct material cost. a. 50% b. 150% c. None of these d. 20096
- Course: Accounting for Decision Making and Control The West Point plan of Walkers Electronics Company has the following standards for component C91: Standards: Material 2 units of material B Material Price $10 per unit of B Direct labor 1 hour Wage rate $10 per direct labour hour Variable support cost rate $25 per direct labour hour Actual results for March Used 4,200 units of B, purchased at $9.75 per unit of B Paid for 2,000 direct labour hours at $11 per hour Incurred $48,000 of variable support costs Manufactured 2,000 units of component C91 Required: Determine any (5) five of following variances for March: Total direct material…Miracles Manufacturing Co. manufactures a lifting equipment. One order from Heaven Company for 3,000 lifting equipment showed the following cost per unit; materials P35.00; labor P20.00; FOH applied at 150% of direct labor cost which includes a 10% allowance for reworking defective units. Final inspection showed that 250 units were not properly produced. Correction for each defective unit requires P3.50 for materials, P4.00 for labor and FOH at the appropriate rate.Assuming the defective units are the result of the customer’s change in specifications, how much is the cost per completed unit?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
- The EG Company produces and sells one product. The following data refer to the year just completed:Units in beginning inventory ..........................0Units produced................................................8,900Units sold........................................................8,500Units in ending inventory ...............................400Variable costs per unit:Direct materials ...........................................$26Direct labor..................................................$25Variable manufacturing overhead ...............$4Variable selling and administrative expense.................................................................$4Fixed costs:Fixed manufacturing overhead ....................$249,200Fixed selling and administrative expense....$17,000Sales Price is $100 per unit.Required:Clearly label and show your work!!!a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.b. Prepare an income…At the start of period one Tommy has no opening inventories. Tommy sells his product for £12 per unit incurring the following unit variable costs: £ Direct materials 4.80 Direct labour 2.00 Variable production overheads 1.20 Fixed production overheads are £3,000, fixed selling overheads are £1,000, and production and sales are as follows: Pd 1 Pd 2 Sales 1200 units 800 units Production 1400 units 1600 units Overhead absorption rates are calculated based on budgeted production of 1500 units. Required: a) Prepare profit statements using marginal costing b) Prepare profit statements…INFORMATION RegalLtd uses the standard costing system. The standards and actual information for May 2022 for the only product that it manufactures are as follows: STANDARDS Direct materials.............................4kg @ R7 per kg Direct labour..................................5 hours @ R60 per hour Variable manufacturing overheads..R12 per labour hour Normal production.........................12 000 units per month ACTUAL INFORMATION FOR MAY 2022: Direct materials used.......................43 000kg @ R7.50 per kg Direct labour.....................................56 000 hours @ R58 per hour Variable manufacturing overheads...R649 600 Production........................................11 000 units manufactured Use the information to calculate the following variances. In each case state whether the variance is favourable or unfavourable 3.1 Material quantity variance 3.2 Labour efficiency variance 3.3 Variable manufacturing overheads expenditure variance