Heavy Products, Inc developed standard costs for drect material and direct labor. In 2017, All estimated the folowing standard costs for one of their major products, the 10- galon plastic containetDrect materialsDirect laborBudgeted quantity07 pounds02 hoursBudgeted pricess0 per pound$15 per hourDuring June, Hey Products produced and sold 26.000 containers using 19.000 pounds of drect materials at an average cost per pound of S53 and 17,500 direct manutachuring labor - hours at an average wage of $10.54 per hoJune's direct matenal ferble - budget variance isOA M7.000 farorableR75,000 unfavorableOC $132.000 untavoratleOD. S27.300 favorable

Name: Heavy Products, Inc developed standard costs for drect material and d
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Description: Heavy Products, Inc developed standard costs for drect material and direct labor. In 2017, All estimated the folowing standard costs for one of their major products, the 10- galon plastic containetDrect materialsDirect laborBudgeted quantity07 pound

The direct material flexible budget variance is calculated as sum of direct materials price variance…

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mavy Product, Inc developed standard costs for drect material and direct labor lestmated the folowing standa Dred materials Drect labor Budgeted quantity 07 pounds 02 hours Budgeted erice $50 per pound $15 per hour Dung June, Hey Products produced and sold 25.000 containers using 19.000 pounds of deect materastn verage cost per pound of S53 and 17.500 direct manufacturing labor-hours at an average wage of S16.00 per ho Bune's direct matetal fexble-budget variance is OA M7000 tarorable R 75.000 unfavorable OC S132000 unfavorable OD S27300 avorable

mavy Product, Inc developed standard costs for drect material and direct labor lestmated the folowing standa Dred materials Drect labor Budgeted quantity 07 pounds 02 hours Budgeted erice $50 per pound $15 per hour Dung June, Hey Products produced and sold 25.000 containers using 19.000 pounds of deect materastn verage cost per pound of S53 and 17.500 direct manufacturing labor-hours at an average wage of S16.00 per ho Bune's direct matetal fexble-budget variance is OA M7000 tarorable R 75.000 unfavorable OC S132000 unfavorable OD S27300 avorable

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 4CMA: JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT...

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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?
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?
Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
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JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of 600,000 and fixed factory overhead of 400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was 596,000, and actual fixed factory overhead was 410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. 24,000 unfavorable. b. 2,000 unfavorable. c. 4,000 favorable. d. 22,000 favorable.
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