Q3 A company manufactured 30,000 units during the year 2017 by consuming 66,000 kg of raw material which was purchased at OMR 2 per kg. The engineering section of the company had estimated 2 kg of raw material for a unit output. The standard price of the raw material was fixed for OMR 3.00 per kg. Calculate material variances.
Q: Ali Inc. produces a product requiring 8 pounds of material at P1.50 per pound. Ali Inc. produced…
A: Direct Material quantity variance = (Actual quantity used - Standard quantity allowed)*Standard…
Q: Sampson Apparel Inc. incurred actual variable overhead expenses of P62,000 in the current year for…
A: Solution: Standard hours for actual production = Nos of units produced *Standard hours per unit =…
Q: Joyous Company purchases 12,000 pounds of materials. The materials price variance is P6,000…
A: Direct Material price variance = (Standard price per pound - Actual price per pound)*Actual quantity…
Q: Happy, Inc. produces a product requiring 8 pounds of material at P1.50 per pound. Happy, Inc.…
A: Standard material per unit = 8 Pound Standard material for 10,000 units (SQ) = 8*10000 = 80,000…
Q: b) Fan Trading produces plastic bottles. Each bottle has a standard labor requirement of 0.025…
A: The variance is the difference between the actual data and standard output of the production.
Q: E10.23 Straightforward calculation of variances; variance diagrams: тапufacturer During June, Andrew…
A: Answer - Handwritten Solution is Given below.
Q: ABC corporation incurred fixed manufacturing costs of $17,000 during 2017. Other information for…
A: Absorption costing is a method of aggregating and allocating manufacturing process expenses to…
Q: -/1 Question 8 View Policies Current Attempt in Progress Marigold Corp. has a materials price…
A: Calculate the direct material price variance.
Q: The standards for product V28 call for 7.5 pounds of a raw material that costs $18.10 per pound.…
A: Given,
Q: Possible causes for price and efficiency variances. You have been invited to interview for an…
A: 1.
Q: hdustries, Inc. (G), developed standard costs for direct material and direct labor. In 2017, GIl…
A: Introduction: The actual quantity utilized refers to the amount of materials used in the actual…
Q: Please answer question "c" only
A: Following is the preparation of income statement:
Q: DRS Manufacturing has the following standards for one of its products: Production Costs Direct…
A: Direct Material price variance= (Actual price per meter - Standard price per meter) x Actual…
Q: Amalgamated Manipulation Manufacturing’s (AMM) standards anticipate that there will be 3 pounds of…
A: Material price variance = (Standard price per pound - Actual price per pound)*Actual quantity…
Q: The following data have been taken from the records of a company: 200,000 Production in units during…
A: Variable Costing - In this costing method, variable costs are considered while preparing the cost of…
Q: Question 1: The national Corporation manufactures lamps. It has set up the following standards per…
A: PLEASE GIVE A LIKE, your response matters A) Direct materials price variance Formula = AQP x (AP –…
Q: During August, 2021, a company produced 1,000 units of a product using 3,600 pounds of direct…
A: Answer) Calculation of Material Quantity variance Material Quantity variance = (Standard quantity of…
Q: 1. Compute the January 2017 price and efficiency variances of direct materials and direct…
A:
Q: 1. Happy, Inc. produces a product requiring 8 pounds of material at P1.50 per pound. Happy, Inc.…
A: Direct material used is the quantity of direct material that the company has actually used during…
Q: (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017,…
A: Fixed manufacturing overhead rate = Planned fixed manufacturing costs / Planned units = $750,000 /…
Q: 1) The standards for a product call for 2.5 pounds of a raw material that costs $6.10 per pound.…
A: Variance analysis is one of the important analysis being made for decision making. Material price…
Q: Weald Corporation manufactures Calculators. Each calculator requires 4 units of Part EZ52, which has…
A: Given, Actual quantity is 10,000 Standard rate is Rs 1.45 per unit Manufactures 3,000 calculators…
Q: E23-6 Lewis Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate…
A: SOLUTION-A TOTAL LABOR VARIANCE TOTAL LABOR VARIANCE= […
Q: A company purchased 6,850 kgs of material at a total cost of $21,920. The material price variance…
A: We have the following information: Purchased 6,850 kgs of material at a total cost of $21,920 The…
Q: ulsa, Inc., planned and actually manufactured 240,000 units of its single product in 2017, its first…
A: Absorption costing: It is a technique that assumes both fixed cost and variable cost as product…
Q: The following standard cost data are for Dito Ltd. for January 2019: Per unit: Direct material…
A: The Numerical has covered the concept of Variance Analysis. In the variance analysis, we will…
Q: Unit VIII QUESTION 6
A: The variance is the difference between standard data and actual production results. The labor…
Q: Information on Vergara Company’s direct material costs for May 2018 is as follows: Actual…
A: Answer) Calculation of Material Price Variance Material Price Variance = (Standard price per pound…
Q: The following information relates to manufacturing business Direct materials 5 kgs x $8 per kg…
A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor…
Q: Will Co. produces chairs. The standard direct material cost to produce one unit of chair is 4 meters…
A: Difference arises in the actual sales & expense and budgeted sales & expense is known as…
Q: 13) Perez, Inc recently completed 56,000 units of a product four pounds of direct material per…
A:
Q: #21 ToolTime has a standard of 2 hours of labor per unit, at P12 per hour. In producing 2,000…
A: Labor price variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor…
Q: 8. Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the…
A: Material price variance at point of purchase is the difference between actual and budgeted cost to…
Q: 9. Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the…
A: Following is the answer to ninth question
Q: At the beginning of 2021, ABC Manufacturing Ltd., adopted the following standards for its direct…
A: Standard hours are given for 1 unit of output. But actual output was 2,600 units. So, standard…
Q: Review of Chapters 7 and 8, 3-variance analysis. (CPA, adapted) The Beal Manufacturing Company’s…
A: 1.
Q: Lily Company uses a standard cost accounting system. In 2022, the company produced 27,600 units.…
A: Actual quantity of direct material used = 130,200 pounds Actual rate of direct material = $0.90…
Q: SCOMAN1 Company produced 4,000 units of product. Each unit requires 3 standard hours. The standard…
A: We will answer the first question since the exact one was not specified. Please resubmit a new…
Q: Happy, Inc. produces a product requiring 8 pounds of material at P1.50 per pound. Happy, Inc.…
A: Variance is considered as the difference between budgeted value and actual results. The management…
Q: DRS Manufacturing has the following standards for one of its products: Table 9: Production Costs…
A: Material price variance = (Actual price per meter - Standard price per meter )*Actual quantity…
Q: Standards established for a particular raw material used by Han Company are as follows: Standard…
A: Materials quantity variance = (Actual quantity of material used - Standard quantity of material…
Q: (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017,…
A: Workings:
Q: The following standard cost data are for Dito Ltd. for January 2019: Per unit: Direct material…
A: Compute the price and quantity variances for direct materials.
Q: Assume the following: • The standard price per pound is $2.00. • The standard quantity of pounds…
A: Material Price Variance - It is calculated by using following formula - (Actual Quantity Purchased *…
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Step by step
Solved in 2 steps with 1 images
- Q42 Mixing Company manufactured 2,709 units of its only product during 2022. The inputs for this production are as follows: 515 pounds of Material A at a cost of $2.15 per pound 430 pounds of Material H at a cost of $3.40 per pound 560 direct labor hours at $46 per hour The firm manufactured 2,775 units of the same product in 2021 with the following inputs: 630 pounds of Material A at a cost of $1.85 per pound 490 pounds of Material H at a cost of $3.15 per pound 530 direct labor hours at $44 per hour In 2022, the partial operational productivity of Material H is: Multiple Choice 6.25 units per pound. 6.30 units per pound. 5.26 units per pound. 2.29 units per pound. 6.20 units per pound.Q25 Mixing Company manufactured 1,098 units of its only product during 2022. The inputs for this production are as follows: 610 pounds of Material A at a cost of $1.50 per pound 460 pounds of Material H at a cost of $3.55 per pound 620 direct labor hours at $52 per hour The firm manufactured 3,000 units of the same product in 2021 with the following inputs: 660 pounds of Material A at a cost of $2.00 per pound 520 pounds of Material H at a cost of $3.30 per pound 560 direct labor hours at $50 per hour In 2022, the partial financial productivity of Material A is: Multiple Choice 1.20. 1.10. 0.44. 1.15. 0.97.Type of Data 2015 2016 Units of AIIPad produced and sold 800 900 Selling price $450 $430 Pounds of direct material used 3,200 3,300 Direct material cost per pound $35 $35 Manufacturing capacity in units 12,000 11,000 Total conversion costs $1,800,000 $1,650,000 Conversion cost per unit of capacity $150 $150 Selling and customer service capacity customers 90 customers Total selling and customer service costs $495,000 $495,000 Selling and customer service capacity cost and customer $500 $550 Assuming Titan had 70 customers in 2015 and 80 customers in 2016, calculate the operating income of Titan for 2015 and 2016; Particulars 2015 2016 Revenue; 800*450;900*430 360,000 387,000 Direct Material Cost 3200*35;3300*35…
- Q21 Mixing Company manufactured 2,200 units of its only product during 2022. The inputs for this production are as follows: 520 pounds of Material A at a cost of $2.20 per pound 370 pounds of Material H at a cost of $3.45 per pound 580 direct labor hours at $48 per hour The firm manufactured 2,268 units of the same product in 2021 with the following inputs: 540 pounds of Material A at a cost of $1.40 per pound 400 pounds of Material H at a cost of $2.70 per pound 450 direct labor hours at $18 per hour In 2021, the partial financial productivity of direct labor is: Multiple Choice 0.28. 5.04. 4.48. 0.25. 5.60.5. We know the following data of the company Perfilados, S.A: a) It bought and consumed € 105,000 in raw materials for the manufactureof its product and, on average, maintained a stock level of them in thestock of € 9,250. Calculate the average storage period.Calculate the average storage period.b) The cost of its annual production is € 198,000, and the average value ofthe products under development is € 11,000. Calculate the averagemanufacturing period. Page 7c) Taking into account that the company exclusively sold all its annualproduction and that the average value of its stock in finished goodswarehouse was € 18,500, it calculates its average sales period.d) Assuming that the company sold its products for an amount of € 290,000and that the customers had on average a debt with the company of €17,000, it calculates the average collection period.e) With the data obtained in the previous points, it calculates the averageperiod of economic maturity of Perfilados, S.A.Solve the questions with the help of the data given below: Type of Data 2015 2016 Units of AIIPad produced and sold 800 900 Selling price $450 $430 Pounds of direct material used 3,200 3,300 Direct material cost per pound $35 $35 Manufacturing capacity in units 12,000 11,000 Total conversion costs $1,800,000 $1,650,000 Conversion cost per unit of capacity $150 $150 Selling and customer service capacity customers 90 customers Total selling and customer service costs $495,000 $495,000 Selling and customer service capacity cost and customer $500 $550 Assuming Titan had 70 customers in 2015 and 80 customers in 2016, 1. Calculate the operating income of Titan for 2015 and 2016; Particulars 2015 2016 Revenue; 800*450;900*430 360,000…
- X Limited Corporation making one product only, the standard cost of which is as follow: 2016 2017 2018 Direct material 35,000 36000 48,000 Direct labor 30,000 33000 42,000 Variable manufacturing overhead 25,000 24000 54,000 Variable marketing costs 10,000 15000 14,000 Total variable costs 100,000 122000 158,000 - The fixed manufacturing overhead costs $300,000 - Fixed marketing costs $200,000 - The selling price $200 per unit sold - The number of units produced and sold were: 2016 2017 2018 Beginning inv. 1000 …… 3000 Production…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
- Q1. During January, Microchem Ltd produced 1000 units of a special product called Stylex, and the accounting records indicated the following: Direct material purchased 36 000 kilograms @ $2.76 per kilogram Direct material used 19 000 kilograms Direct labour 4 200 hours @ $36 per hour Stylex has the following standard prime costs: Direct material: 20 kilograms @ $2.70 per kilogram $ 54.00 Direct labour hours: 4 hours @ $34 per hour 136.00 Standard prime cost per unit $190.00 Required: 1. Calculate the total standard direct material costs and direct labour costs for January. 2. For the month of January, calculate the following variances, indicating whether each is…Q1. During January, Microchem Ltd produced 1000 units of a special product called Stylex, and the accounting records indicated the following: Direct material purchased 36 000 kilograms @ $2.76 per kilogram Direct material used 19 000 kilograms Direct labour 4 200 hours @ $36 per hour Stylex has the following standard prime costs: Direct material: 20 kilograms @ $2.70 per kilogram $ 54.00 Direct labour hours: 4 hours @ $34 per hour 136.00 Standard prime cost per unit $190.00 Required: 1. Calculate the total standard direct material costs and direct labour costs for January. 2. For the month of January, calculate the following variances, indicating whether each is…A factory incurred the following expenditure during the year ended 31 May 2016:Sh.Direct material consumed1,200,000Manufacturing wages700,000Manufacturing overhead â fixed360,000Manufacturing overhead â variable250,000Total cost2,510,000In the financial year ending 31 May 2017, the following changes are expected in production and cost of production.Production will increase due to recruitment of 60% more workers in the factory.Overall efficiency will decrease by 10% as a result of the recruitment of the new workersThere will be an increase of 20% in fixed overhead and 60% in variable overheadThe cost of direct material will decrease by 6% due to anticipated increase in supplyThe company desires to earn a profit of 10% on selling price.You are required to write a management report that compares the total costs for the year ended 31 May 2016 with those expected in 2017.