Martin Company manufactures and sells a chemical compound for industrial use. The following information was available at the beginning of 2017: Standard selling price £1,170.00 Estimated production & sales (units) 2,025 Estimated direct materials (27 Kilograms at £10.00 per Kg.) £270.00 Estimated direct labour (20 hours at £7.00 per hour) £140.00 Estimated variable manufacturing overhead (15 hours at £5.00 per hour) £75.00 At the end of 2017, Martin Company established the following actual figures: Production & sales 1,725 units sold for £1,210.00 per unit Direct materials 63,000 Kg. at £9.00 per Kg. Direct wages 45,000 hours at a total cost of £432,000 Variable manufacturing overhead 31,050 hours at a total cost of £ 230,000 Required: (a) Calculate the following variances and indicate whether the variances are adverse or favourable: (i) Materials price (ii) Materials usage (iii) Labour

Martin Company manufactures and sells a chemical compound for industrial use. The following information was available at the beginning of 2017: Standard selling price £1,170.00 Estimated production & sales (units) 2,025 Estimated direct materials (27 Kilograms at £10.00 per Kg.) £270.00 Estimated direct labour (20 hours at £7.00 per hour) £140.00 Estimated variable manufacturing overhead (15 hours at £5.00 per hour) £75.00 At the end of 2017, Martin Company established the following actual figures: Production & sales 1,725 units sold for £1,210.00 per unit Direct materials 63,000 Kg. at £9.00 per Kg. Direct wages 45,000 hours at a total cost of £432,000 Variable manufacturing overhead 31,050 hours at a total cost of £ 230,000 Required: (a) Calculate the following variances and indicate whether the variances are adverse or favourable: (i) Materials price (ii) Materials usage (iii) Labour

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 41P

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Martin Company manufactures and sells a chemical compound for industrial use. The following information was available at the beginning of 2017: Standard selling price £1,170.00Estimated production & sales (units) 2,025 Estimated direct materials (27 Kilograms at £10.00 per Kg.) £270.00 Estimated direct labour (20 hours at £7.00 per hour) £140.00 Estimated variable manufacturing overhead (15 hours at £5.00 per hour) £75.00 At the end of 2017, Martin Company established the following actual figures: Production & sales 1,725 units sold for £1,210.00 per unitDirect materials 63,000 Kg. at £9.00 per Kg.Direct wages 45,000 hours at a total cost of £432,000Variable manufacturing overhead 31,050 hours at a total cost of £ 230,000 (a) Calculate the following variances and indicate whether the variances are adverse or favourable: (i) Materials price (ii) Materials usage (iii) Labour rate (iv) Labour efficiency (v) Variable overhead rate (vi) Variable…
Martin Company manufactures and sells a chemical compound for industrial use. The following information was available at the beginning of 2017: Standard selling price £1,170.00Estimated production & sales (units) 2,025 Estimated direct materials (27 Kilograms at £10.00 per Kg.) £270.00 Estimated direct labour (20 hours at £7.00 per hour) £140.00 Estimated variable manufacturing overhead (15 hours at £5.00 per hour) £75.00 At the end of 2017, Martin Company established the following actual figures: Production & sales 1,725 units sold for £1,210.00 per unitDirect materials 63,000 Kg. at £9.00 per Kg.Direct wages 45,000 hours at a total cost of £432,000Variable manufacturing overhead 31,050 hours at a total cost of £ 230,000 (a) Calculate the following variances and indicate whether the variances are adverse or favourable: (iv) Labour efficiency (v) Variable overhead rate (vi) Variable overhead efficiency
Martin Company manufactures and sells a chemical compound for industrial use. The following information was available at the beginning of 2017: Standard selling price £1,170.00 Estimated production & sales (units) 2,025 Estimated direct materials (27 Kilograms at £10.00 per Kg.) £270.00 Estimated direct labour (20 hours at £7.00 per hour) £140.00 Estimated variable manufacturing overhead (15 hours at £5.00 per hour) £75.00 At the end of 2017, Martin Company established the following actual figures: Production & sales 1,725 units sold for £1,210.00 per unit Direct materials 63,000 Kg. at £9.00 per Kg. Direct wages 45,000 hours at a total cost of £432,000 Variable manufacturing overhead 31,050 hours at a total cost of £ 230,000 Required: (a) Calculate the following variances and indicate whether the variances are adverse or favourable (iv) Labour efficiency (v) Variable overhead rate (vi) Variable overhead efficiency
Martin Company manufactures and sells a chemical compound for industrial use. The following information was available at the beginning of 2017: Standard selling price £1,170.00 Estimated production & sales (units) 2,025 Estimated direct materials (27 Kilograms at £10.00 per Kg.) £270.00 Estimated direct labour (20 hours at £7.00 per hour) £140.00 Estimated variable manufacturing overhead (15 hours at £5.00 per hour) £75.00 At the end of 2017, Martin Company established the following actual figures: Production & sales 1,725 units sold for £1,210.00 per unit Direct materials 63,000 Kg. at £9.00 per Kg. Direct wages 45,000 hours at a total cost of £432,000 Variable manufacturing overhead 31,050 hours at a total cost of £ 230,000 Required: (a) Calculate the following variances and indicate whether the variances are adverse or favourable: (i) Materials price (ii)Materials usage (iii) Labour rate (iv) Labour efficiency (v) Variable overhead rate (vi) Variable overhead…
Martin Company manufactures and sells a chemical compound for industrial use. The following information was available at the beginning of 2017: Standard selling price £1,170.00 Estimated production & sales (units) 2,025 Estimated direct materials (27 Kilograms at £10.00 per Kg.) £270.00 Estimated direct labour (20 hours at £7.00 per hour) £140.00 Estimated variable manufacturing overhead (15 hours at £5.00 per hour) £75.00 At the end of 2017, Martin Company established the following actual figures: Production & sales 1,725 units sold for £1,210.00 per unit Direct materials 63,000 Kg. at £9.00 per Kg. Direct wages 45,000 hours at a total cost of £432,000 Variable manufacturing overhead 31,050 hours at a total cost of £ 230,000 Required: (a) Calculate the following variances and indicate whether the variances are adverse or favourable: (i) Materials price (ii)Materials usage (iii) Labour rate (iv) Labour efficiency (v) Variable overhead rate (vi) Variable overhead efficiency…
Jeanne Corporation began its operations on January 1, 2016, and produces a single product that sells for P9.00 per unit. India uses an actual (historical) cost system. 100,000 units were produced and 90,000 units were sold in 2016. There was no work-in-process inventory at December 31, 2016. Manufacturing costs and administrative expenses for 2016 were as follows: Fixed costs Variable costs Raw materials - P1.75 per unit produced Direct labor - P1.25 per unit produced Factory overhead P100,000 P0.50 per unit produced Selling and administrative 70,000 P0.60 per unit produced What would be Indiana’s operating income for 2016 using the direct costing method? Group of answer choices P271,000 P371,000 P281,000
Boston, Inc., planned and actually manufactured 200,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $11 per unit sold. Planned and actual fixed manufacturing costs were $1,000,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $370,000. Boston sold 140,000 units of product at $46 per unit. Read the requirements LOADING... . Requirement 1. Boston's 2017 operating income using absorption costing is (a) $1,030,000, (b) $730,000, (c) $1,100,000, (d) $1,400,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.)…
Time Again, LLC produces and sells a mantel clock for $100 per unit. In 2017, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:Direct materials $43 per unitDirect manufacturing labor $5 per unitVariable manufacturing costs $3.50 per unitSales commissions $14.50 per partFixed manufacturing costs $65.00 per unitAdministrative expenses, all fixed $37.50 per unitWhat is the inventoriable cost per unit using variable costing? A) $66.00B) $51.50C) $48.00D) $103.50
VXY Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P 3.00 per unit Direct labor. P 2.50 per unit Variable manufacturing overhead. P 2.00 per unit Fixed manufacturing overhead. P 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses. P 0.25 per unit Fixed SG&A expense P 75,000 per year During 2021, its first year of operations, VXY manufactured 51,000 units and sold 48,000. The selling price per unit was P25. All costs were equal to standard. 1. The volume variance under absorptoon costing is.
VXY Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P 3.00 per unit Direct labor. P 2.50 per unit Variable manufacturing overhead. P 2.00 per unit Fixed manufacturing overhead. P 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses. P 0.25 per unit Fixed SG&A expense P 75,000 per year During 2021, its first year of operations, VXY manufactured 51,000 units and sold 48,000. The selling price per unit was P25. All costs were equal to standard. 1. Based on variable costing, the income before income taxes for the year was.
Bairstow Company manufactures and sells a single product. The following costs wereincurred during 2021, the company’s first year of operations:Variable Costs per unit:Production: Direct materials $ 6.00 Direct labour $ 9.00 Variable Manufacturing Overhead $ 3.00Selling and administrative $ 4.00FIXED COSTS PER YEARManufacturing Overhead $ 300,000Selling and administrative $ 190,000During 2021, the company produced 25,000 units and sold 20,000 units. The selling price ofthe company’s product is $ 50 per unit.Required: 2. Assume the company uses the variable costing method: a. Compute the cost to produce one unit of product. (2 marks) b. Prepare an income statement for 2021. (8 marks)
MM has prepared the following standard cost information for one unit of a product: Production 12 000 units Direct materials: 3 metres at K12 000 per metre Direct labour: 6 hours at K6 250 per hour Fixed Production overheads: 6 hours at K5 500 per hour Actual results in the month of May 2012 were recorded as follows: Actual output: 10 000 units Direct materials purchased and used: 32 000 metres with a total value of K377 600 000 Direct labour: 70 000 hours with a total cost of K422 800 000 Fixed overheads: K330 000 000 Required: (a) Use the budget data to determine the standard cost of one unit. (b) Calculate the following variances. (i) Material usage and Price variances. (ii) Labour Efficiency and Rate variances. (iii) Fixed overhead Expenditure and Volume variances. (c) Draw up a statement reconciling the standard cost with the actual cost.