Problems 1. Use the following standard cost card for 1 gallon of ice cream to answer the questions. Product: Gallon of Ice Cream Manufacturing Costs Direct Materials Cream Sugar Direct Labor Total Direct Costs ● Standard Cost Card Standard Quantity 5 quarts 16 ounces 3 minutes x Standard Cost per Unit $1.15 per quart $.08 per ounce $36.00 per hour Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. = Cost Summary $5.75 $1.28 $1.80 $8.83

Problems 1. Use the following standard cost card for 1 gallon of ice cream to answer the questions. Product: Gallon of Ice Cream Manufacturing Costs Direct Materials Cream Sugar Direct Labor Total Direct Costs ● Standard Cost Card Standard Quantity 5 quarts 16 ounces 3 minutes x Standard Cost per Unit $1.15 per quart $.08 per ounce $36.00 per hour Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. = Cost Summary $5.75 $1.28 $1.80 $8.83

Name: Problems1. Use the following standard cost card for 1 gallon of ice c
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Problems1. Use the following standard cost card for 1 gallon of ice cream to answer the questions.Product: Gallon of Ice CreamManufacturing CostsDirect MaterialsCreamSugarDirect LaborTotal Direct CostsKStandard Cost CardStandard Quantity5 quarts16 o

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 10PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...

See similar textbooks

Similar questions

Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All materials used were bought during the current period. A. Compute the material and labor variances. B. comment on the results and possible causes of the variances.
Use the following standard cost card for 1 gallon of ice cream to answer the questions. STANDARD COST CARD Product: Gallon of Ice Cream Manufactering cost info Standard Quantity x standard cost per unitx x cost summary direct materials cream sugar 5 quarts 16 ounces x $1.15 per quart $0.08 per ounce x $5.75 $1.28 direct labor 3 min x $36.00 per hour x $1.80 total direct costs x x $8.83 Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. Required: Compute the material and labor variances. Comment on the results and possible causes of the variances.
Each finished unit of product X contains 60 pounds of raw materials. The manufacturing process must provide for a 20% waste allowance. The raw materials can be purchased for a cost of P2.50 a pound under terms of 2/10, n/30. The company takes all cash discounts. What is the standard direct materials cost of each unit of product X? a. 180 b. 187.50 c. 183.75 d. 176.40 Please include a short explanation. Thank you.
Given the following information for a product: Direct labor hours: 0.25 hour/unit Direct labor costs: $20/hour Direct materials cost: S5/unit Overhead costs: 110% of direct labor Packaging and shipping: $2/unit Desired profit margin: 2096 of the total cost Suppose that a market survey has shown that the best competitor's selling price for the product is $19.50 per unit. After conducting a value engineering study, It was found that the material cost is high and another equal and less expensive material can be used to achieve the required target cost. What should the material cost per unit be to achieve the required target cost for the product?
The cost and volume information below:Volume Cost 1 unit USD15 10 units USD150 100 units USD1500 What type of a cost is given?a. fixed costb. variable costc. step costd. mixed coste. rent cost. The Cape Cod Cotton Candy Company had the following information available regarding last year’s operations: Sales (100,000 units) USD200,000Variable costs USD100,000Contribution margin USD100,000Fixed costs USD50,000Net Income USD50,000 If sales were to increase by 200 units, what would be the effect on net income?a. USD400 increaseb. USD200 increasec. USD150 increased. USD100 increasee. USD200 loss
Problem to solve: please help. Cane Company manufactures two products called Alpha and Beta that sell for $170 and $130, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 116,000 units of each product. Its average cost per unit for each product at this level of activity is given below: Alpha Beta Direct materials $ 30 $ 18 Direct labor 30 25 Variable manufacturing overhead 20 15 Traceable fixed manufacturing overhead 26 28 Variable selling expenses 22 18 Common fixed expenses 25 20 Total cost per unit $ 153 $ 124 The company’s traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Please answer all of these fallowing questions: 5. Assume Cane expects to produce and sell 105,000 Alphas during the current year. One of Cane's sales representatives found a new customer…
Please answer parts 1-4, I have used another question to get 5-8. Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials ? $ 5.00 per yard $ ? Direct labor ? ? ? Variable manufacturing overhead ? $ 2 per direct labor-hour ? Total standard cost per unit $ ? Overhead is applied to production on the basis of direct labor-hours. During March, 780 backpacks were manufactured and sold. Selected information relating to the month’s production is given below: Materials Used Direct Labor Variable Manufacturing Overhead Total standard cost allowed* $ 15,600 $ 13,104 $ 2,496 Actual costs incurred $ 13,112 ? $ 5,491 Materials price variance ? Materials quantity variance $ 790 U Labor rate variance ? Labor efficiency variance ? Variable…
Using the high-low method, how much is the total cost of producing 130 grams of honey? The cost accountant of sweet company recorded these cost of producing honeybee: DAYS GRAMS PRODUCED TOTAL COST INCURRED MON 100 1000 TUES 75 600 WED 25 400 THURS 150 1500 FRI 175 1600 SAT 50 600 SUN 125 1300
A unit of cake uses various direct materials, direct labor and indirect manufacturing costs. Indirect costs use a rate of direct labor hours. Data:each cake consumes 10 ounces of materials at a negotiated cost of 0.05.each employee takes 0.10 of an hour to produce a cake.employee rate= $10.00 (for each quarter)variable costs= $16,000fixed costs = $116,000labor hours for four quarters of the year = 8,197 Calculate the estimated total cost of manufacturing one unit of cake. Prepare a cost per unit budget
Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis:Variable manufacturing costR1 185 000Fixed manufacturing costR510 000Sales commissionR5 per unit soldFixed administration costR130 000SalesR210 per unit Study the information provided above and answer the following questions independently:4.1 Calculate the break-even sales value. 4.2 Calculate the sales volume required to achieve a profit of R 800 000. 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your answer with relevant calculations.
The Dolphin Hotel sells their famous hotel soap. Information on cost per unit is as follows: Direct materials $6.50 Direct labor 9.00 Variable overhead 3.50 Variable marketing expense 3.00 Fixed marketing expense totaled $26,000 and fixed administrative expense totaled $39,000. The price per bar of soap is $42. How many units must be sold to yield targeted income of $80,000?
B. Find the cost of a product Different costs are presented below Direct materials $ 5.00 per unit Indirect materials $ 2.00 per unit Direct labor $ 10.00 per hour Indirect labor $ 3.00 per hour Other variable indirect costs $ 6.00 per hour Other fixed indirect costs $ 10.00 per unit Commissions to sellers $ 4.00 per unit Variable administrative costs $ 6.00 per unit Fixed Administrative Costs $ 10.00 per unit 3. If marketing studies show that the maximum price that consumers are willing to pay for this type of product is $ 48.00, determine how much cost you must reduce in order to maintain the desired% profit