Quantity of Driver Activity Cost Pool Cost Driver Pool Rates for Satin Sheen Incoming material inspection . Type of material . $11.50 per type . 12 types In-process inspection Number of units .14 per unit 17,500 units 77.00 per order . 25 orders Product certification Per order
Q: FAITH, the consultant of JOY had summarized the following standard cost data extracted from the…
A: Budgeted hours = normal capacity x budgeted hours per unit = 400 units x 5 hours x 12 months =…
Q: Norris Company produces telephones. To help control costs, Norris employs a standard costing system…
A: Standard costing is the one that is used to compare the actual and expected results. The difference…
Q: Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park…
A: Standard costing involves setting-up predetermined cost or expenses estimates. Such predetermined…
Q: Acoma Co. has identified one of its cost pools to be quality control and has assigned $53,998 to…
A: Calculate activity rate.
Q: Nicki Fenty Corporation manufactures a variety of beauty products in several departments and…
A: The method of designing budgets dependent on the relationship between programme funding levels and…
Q: MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted…
A: Budgeted hours = normal capacity x budgeted hours per unit = 400 units x 5 hours x 12 months =…
Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park…
A: A: Note: Standard cost per unit is calculated by dividing the standard quantity and standard cost.
Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park…
A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: Vernon Company manufactures molded candles that are finished by hand. The company developed the…
A:
Q: FAITH, the consultant of JOY had summarized the following standard cost data extracted from the…
A: Budgeted hours = normal capacity x budgeted hours per unit = 400 units x 5 hours x 12 months =…
Q: Believing that its traditional cost system may be providing misleading information, an entity is…
A: Activity based costing means where the overhead is allocated on the basis of work involved and not…
Q: a Corp. has used a traditional cost accounting system to apply quality control costs uniformly to…
A: Traditional costing is the practice of allocating factory overhead to products depending on the…
Q: Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency.…
A: SOLUTION- 1 MATERIAL PRICE VARIANCE FORMULA- MATERIAL PRICE…
Q: peau Company is noted for an exceptionally impressive line of one-size fits-all men's hats. Chapeau…
A: Note - First 2 are being answered. Please post a separate question for balance parts. Regrets for…
Q: Bortello Corporation produces high-quality leather boots. The company has a standard cost system and…
A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor…
Q: Nicki Fenty Corporation manufactures a variety of beauty products in several departments and…
A: Budget Preparation approach refers to a budget which is a set of pro-forma statements about the…
Q: BOTE Inc. produces sustainable plastic bottles, The following tables show the detailed production…
A: Activity based costing is a method of costing in which all indirect costs or overheads are allocated…
Q: At the beginning of the year, Craig Company had the following standard cost sheet for one of its…
A: Solution:- 1)Calculation of labor rate variance as follows under:- Labor rate variance = (…
Q: Pokeman Bunch Inc., manufactures Poke Monster figures and has the following data from its operation…
A: The actual result is compared with the standard set by the company through the variance analysis.
Q: Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency.…
A: Material Price Variance is the difference between the standard price and the actual price for the…
Q: The management accountant of a business is calculating the monthly variances to review and control…
A: Sales volume profit variance is the variance between budgeted units sold and actual units sold with…
Q: A popular product of Loring Glassworks is a hand-decorated vase. The company's standard cost system…
A: Labor rate variance = (standard rate per hour- actual rate per hour)*actual hours Labor efficiency…
Q: Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park…
A: Answer A) Standard price per unit of material =Standard material cost per unitQuantity of material…
Q: Bortello Corporation produces high-quality leather boots. The company has a standard cost system and…
A: Answer: Direct labor rate variance is kind of cost variance which primarily concentrate on the rate…
Q: Oerstman, Inc. uses a standard costing system and develops its overhead rates from the current…
A: 1. Compute fixed overhead spending variance: Fixed overhead spending variance = Actual fixed…
Q: Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current…
A: Fixed overhead Spending variance = Budgeted Fixed overhead - Actual Fixed Overhead Fixed overhead…
Q: A local picnic table manufacturer has budgeted these overhead costs - ERROR: "Handling materials" is…
A: Manufacturing overhead means the expense incurred in a factory which is not directly linked with…
Q: BrightWater, LLP uses a standard costing system to collect costs related to the production of its…
A: Please find the answer to the above question below:
Q: For years, EML has allocated overhead based on total machine hours. A recent assessment of overhead
A: You're a well-known local management auditor: Recognition: The issue is around the Integration,…
Q: Muning Corporation has a used a traditional accounting system to apply quality control costs…
A: Quality control cost assigned to main product = Overhead rate x no. of direct labor hours
Q: Lovell Computer Parts Inc. Is in the process of setting a selling price on a new component it has…
A: Total cost includes both variable and fixed costs involved.
Q: The following standard costs per unit, of one product, have been taken from the records of Bahrain…
A:
Q: hour at each level of activity. c. Tom’s employees usually work 350 direct labor hours per month.…
A: A flexible budget refers to the form of the budget which reflects different volumes of sales and…
Q: Home Decor Company manufactures special metallic materials for luxury homes that require highly…
A: Solution: Actual rate of labor = $378,000 / 25000 = $15.12 per labor hour
Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park…
A: Actual quantity feet used = Standard cost for Actual Quantity / Standard price for one unit of…
Q: Acoma Co. has identified one of its cost pools to be quality control and has assigned $58,473 to…
A: Activity Based Costing: Activity Based Costing (ABC) is a technique of cost accounting. This method…
Q: Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C.…
A: The contribution of a product is calculated by deducting the variable cost from the sales price of…
Q: Urban Africa cosmetics has used a traditional cost accounting system to apply quality-control costs…
A: Activity based costing means where the product is valued on the basis of actual direct material ,…
Q: Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current…
A: Actual overhead = $241,400 + $556,200 = $797600 Budgeted Fixed Overhead = Standard variable overhead…
Q: Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour…
A: FOH Volume Variance = $ 24,000 (Adverse)
Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park…
A: Step 1: Compute the actual price: Actual price of the material=$200,0005,000=$4 per feet Thus, the…
Q: Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency.…
A: Overhead cost variance can be defined as the difference between the standard cost of overhead…
Q: Palladium Inc. produces a variety of household cleaning products. Palladium's controller has…
A: Overhead Budget has been developed to anticipate and show all estimated expenses associated with the…
Q: Norris Company produces telephones. To help control costs, Norris employs a standard costing system…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 14.5 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $27,500. In an attempt to more equitably distribute quality-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup.
Required:
1. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product-costing systems. (Round to the nearest dollar.)
a. Traditional system, which assigns
b. Activity-based costing.
2. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Each of the following independent situations relates to direct labor. Fill in the blanks. ABCD Units produced4,000_____3,000_____ Actual hours worked1,9008,400__________ Standard hours forproduction achieved 2,000__________6,000 Standard hours per unit_____0.523 Standard rate per hourP12P10P12_____ Actual labor cost_____P83,600_____P24,500 Rate varianceP310U_____P900UP300F Efficiency variance_____P2,000UP1,800FP800 UNeelopak Berhad prepared the standard cost data for one of their products.Direct Labour (0.65 hours @ RM11) RM7.15Direct Materials (5 meters @ RM5) RM25Variable Overhead (0.65 hours @ RM7) RM4.55Fixed Overhead (0.65 hours @ RM3) RM1.95Standard cost per unit RM38.65There is the actual cost data information:Production 7,500 unitDirect materials used (23500 meter) RM124,550Direct materials purchasing (24,000 meter) RM132,000Direct labor (3000 hours) RM34,500Variable overhead RM21,600Fixed overhead RM7,800Budgeted activities are 2,600 hours.You are required to calculate:i) Variance of direct materials priceii) Variance of direct materials usediii) Variance of direct labor charge rateiv) Variance of direct labors’ efficiencyv) Variance of variable overhead expensesvi) Variance of variable overhead’s efficiencyvii) Variance of fixed overhead expensesviii) Variance of fixed overhead volumeNeelopak Berhad prepared the standard cost data for one of their products.Direct Labour (0.65 hours @ RM11) RM7.15Direct Materials (5 meters @ RM5) RM25Variable Overhead (0.65 hours @ RM7) RM4.55Fixed Overhead (0.65 hours @ RM3) RM1.95Standard cost per unit RM38.65There is the actual cost data information:Production 7,500 unitDirect materials used (23500 meter) RM124,550Direct materials purchasing (24,000 meter) RM132,000Direct labor (3000 hours) RM34,500Variable overhead RM21,600Fixed overhead RM7,800Budgeted activities are 2,600 hours.You are required to calculate:vii) Variance of fixed overhead expensesviii) Variance of fixed overhead volume
- Neelopak Berhad prepared the standard cost data for one of their products.Direct Labour (0.65 hours @ RM11) RM7.15Direct Materials (5 meters @ RM5) RM25Variable Overhead (0.65 hours @ RM7) RM4.55Fixed Overhead (0.65 hours @ RM3) RM1.95Standard cost per unit RM38.65There is the actual cost data information:Production 7,500 unitDirect materials used (23500 meter) RM124,550Direct materials purchasing (24,000 meter) RM132,000Direct labor (3000 hours) RM34,500Variable overhead RM21,600Fixed overhead RM7,800Budgeted activities are 2,600 hours.You are required to calculate:iv) Variance of direct labors’ efficiencyv) Variance of variable overhead expensesvi) Variance of variable overhead’s efficiencyvii) Variance of fixed overhead expensesviii) Variance of fixed overhead volumeSolve Sub parts: Direct labor efficiency (quantity) var.$________U F and all journals STANDARD COST SYSTEM: VARIANCES AND ENTRIES: Company B uses a standard cost system to control manufacturing costs. All expenditures were on account. Standards to produce one unit of finished product: Direct materials: 2 lbs. @ $8.00 per lb. Direct labor: 6 hours at $20.00 per hour Actual results: Actual production: 62,000 units Actual materials purchased: 130,000 lbs. @ $8.20 per lb. Actual materials used: 125,000 lbs Actual direct labor usage: 370,000 hours Actual direct labor costs: $ 7,585,000 REQUIRED: COMPUTE (must show calculations) and indicate whether favorable (F) or unfavorable…The following standard costs were developed for one of the products of ELJAY Sdn Bhd (ESB):STANDARD COST PER UNITRMDirect materials 3 feet @ RM4.00 per foot 12.00Direct labor 5 hours @ RM8.00 per hour 40.00Variable overhead 5 hours @ RM4.00 per hour 20.00Fixed overhead 5 hours @ RM6.00 per hour 30.00Total standard cost per unit 102.00The following information is available regarding the company's operations for the period:Units produced 40,000Materials purchased 240,000 feet at RM4.40 per footMaterials used 150,000 feetDirect labor 220,000 hours at RM8.30 per hourOverhead incurred:Variable RM770,000Fixed RM900,000Budgeted fixed overhead for the period is RM960,000, and the standard fixed overhead rate is based on the expected capacity of 160,000 direct labor hours. REQUIRED: fixed overhead spending variance fixed overhead volume variance
- Superior Micro Products uses the FIFO method in its process costing system. Data for the AssemblyDepartment for May appear below:Materials Labor OverheadCost added during May ............................................ $193,320 $62,000 $310,000Equivalent units of production .................................. 27,000 25,000 25,000Required:Compute the cost per equivalent unit for materials, labor, overhead, and in totalWeighted-average method, equivalent units.Consider the following data for the assembly division of Fenton Watches, Inc.:The assembly division uses the weighted-average method of process costing. Physical Units (Watches) Direct Materials Conversion CostsBeginning work inprocess (May 1) a 80 $493,360 $91,040Started in May 2012 500Completed duringMay 2012 460Ending work inprocess (May 31)b 120Total costs addedduring May 2012 $3,220,000 $1,392,000a Degree of completion: direct materials, 90%; conversion costs, 40%.b Degree of completion: direct materials, 60%; conversion costs, 30%.Required:1. Compute equivalent units for direct materials and conversion costs. Show physicalunits in the first column of your schedule.2. Summarize total costs to account for, calculate cost per equivalent unit for directmaterials…Sub : Accounting Please answer all questions. Please type the solution. Thank You Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows: Line Item Description Standard Costs Actual Costs Direct materials 195,000 lbs. at $5.50 per lb. 193,100 lbs. at $5.40 per lb. Direct labor 19,500 hrs. at $16.80 per hr. 19,950 hrs. at $17.10 per hr. Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Factory overhead Variable cost, $2.90 $55,980 variable cost Factory overhead Fixed cost, $4.60 $93,610 fixed cost Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost…
- Activity Allocation Base Predetermined Overhead Allocation Rate Materials handling Number of parts $8.00 per part Machine setup Number of setups 800.00 per setup Insertion of parts Number of parts 28.00 per part Finishing Number of finishing hours 60.00 per hour Standard Deluxe Parts per rim 8.0 9.0 Setups per 500 rims 12.0 12.0 Finishing hours per rim 2.0 4.5 Total direct labor hours per rim 6.0 9.0 Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2024: LOADING... (Click the icon to view the allocation rates.) Elkin produces two wheel rim models: standard and deluxe. Expected data for 2024 Part 1 The company expects to produce 500 units of each model during the year. Requirement 1. Compute the total estimated indirect manufacturing cost for 2024. Begin by selecting the formula to compute the total estimated overhead (OH) costs.…Assume that Ellis Perry has identified three activity cost pools. Pool Cost Cost Driver Assembly $630,000 Direct labor hours Setup 30,000 Number of setups (1 per batch) Packaging 180,000 Weight (i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,286.) AM-2 FM-9 Total allocated overhead $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places (ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.) AM-2 FM-9 Overhead cost per unit $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places Ellis Perry is an electronics components manufacturer. Information about the…Answer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 7. VOH efficiency variance8. Fixed overhead (FOH) spending variance9. FOH volume variance