Required: 1. What is the standard labor-hours allowed (SH) to ship 110,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 110,000 items to cus 3. What is the variable overhead spending variance?
Q: direct labo Required: 1 What is the standard labor-hours allowed (SH) to prepare 7,000 meals? 2 What…
A: Direct labour cost/spending variance: direct labour variance is variance analysis done by the…
Q: The following information describes a company's usage of direct labor in a recent period: Actual…
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A: Variable overhead variance is divided into 3 variance. 1.Variable Overhead Efficiency variance=…
Q: The following data relate to direct labor costs for the current period: Standard costs 7,500 hours…
A: Solution.. Standard rate = $11.20 per hour Actual rate = $10.10 per hour Actual hours = 6,100…
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A: Actual hours worked refers to all hours worked by the employee and excludes any paid or unpaid leave…
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A: Given, Actual rate per hour = $11.85 Standard rate per hour = $12 Actual hours = 58,000 hours
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A: Formula used: 1)Variable overhead spending variance: Variable overhead spending variance=AH(AR-SR)…
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A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: The following data relate to direct labor costs for the current period: Standard costs 6,000…
A: DIRCET LABOR RATE VARIANCE : = ( ACTUAL PRICE - STANDARD PRICE ) X ACTUAL HOURS
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A: Flexible budget: Flexible budget is prepared based on the estimated costs for different levels of…
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A: Direct labor variance arises when budgeted labor cost is not same as actual labor cost. Labor cost…
Q: DIRECT LABOR DIRECT MATERIAL Standard price or rate per unit of input Standard quantity per unit of…
A: Direct labor defines a kind of labor force which is directly linked with the manufacturing process.…
Q: Brice Corporation shows the following overhead information for the current period. Actual overhead…
A: Variable overhead price variance = Actual overhead - ( Actual hours x Standard overhead rate )…
Q: Acme Inc. has the following information available: Actual price paid for material $0.90 Standard…
A: ln cost accounting variance is calculated in order to understand the deviations from the actual, it…
Q: Acme Inc. has the following information available: Actual price paid for material $0.90 Standard…
A: Material Price Variance (MPV) MPV = (SP - AP) x Actual Quantity. Where, SP = Standard Price = $1 AP…
Q: Variable Overhead Spending and Efficiency Variances,Columnar and Formula ApproachesRath Company…
A: The difference between the actual cost and the anticipated (or planned) cost is known as an…
Q: Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $20.40 per…
A: a. Rate variance (Standard Rate - Actual Rate)*Actual Hour b. Time variance (Standard Hour…
Q: The following data relate to direct labor costs for the current period: Standard costs 7,400 hours…
A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked
Q: Honesty Company uses standard costing for each specialized product. The following information is…
A: Labor efficiency variance = (Actual hours worked - Standard hours allowed) x Standard rate per hour…
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A: Material cost and labour cost variance means when there is a difference between standard or budgeted…
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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $11.30 per…
A: Introduction: Variance analysis is the quantitative examination of the differences between actual…
Q: A company reports the following information for its direct labor. Actual hours of direct labor used…
A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked…
Q: Required: 1. What is the standard labor-hours allowed (SH) to ship 165,000 items to customers? 2.…
A:
Q: Denominator level in hours 40,000 Actual output in units 21,000 Std. Variable overhead rate per…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: The following data relate to direct labor costs for the current period: Standard costs 6,900 hours…
A: Given that: Actual hours = 6400 hours Standard hours = 6900 hours Standard rate per hour = $11.30…
Q: From the following data, determine the total actual costs incurred for direct material, direct…
A: Formula: Material price variance = (Standard price - Actual price)*Actual quantity purchased…
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A: Factory Overhead is the indirect cost consisting of indirect material, indirect labor, heating,…
Q: e following information relates to product A: Quantity Unit Price Cost Per Unit Material…
A: The variance is the difference between standard and actual cost of production.
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A: Standard and the actual costs for direct materials and direct labor are given as under:…
Q: Question # 1 Standard and the actual costs for direct materials and direct labor are given as…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…
A: The variance is the difference between standard and actual costs incurred.
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A: Direct material price variance determines the difference between the budgeted cost of material and…
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A: Hi student Since there are multiple sub parts, we will answer only first three subparts.
Q: The following information relates to product A: Quantity Unit Price Cost Per Unit…
A:
Q: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…
A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: 1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for…
A: 1.
Q: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…
A: Note: As per the Policy , we can only answer up to 3 sub-parts, we’ll answer the first 3. Please…
Q: Acme Inc. has the following information available: Actual Price paid for material $1.00 Standard…
A: Material Price Variances : Actual Quantity Usage (Standard price - Actual Price) = 100 ( $ 0.90 - $…
Q: Can you show me how this is done? How do I know if it is favorable or unfavorable? Bailey’s…
A: Direct Labor Efficiency Variance = Standard Hours at Standard Rate – Actual Hours at Standard…
Q: Determine the overhead variance for the period?
A: Variance overhead is difference between the actual rate and standard rate multiplied with actual…
Q: Given the following information in standard costing: Standard 18,200 hours at $6.20 Actual…
A: Direct labor rate variance is a difference between the actual labor hours at budgeted cost and the…
Q: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…
A: Standard cost means the cost which the company is expecting to be incurred on the basis of estimate…
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A: The Numerical has Covered the concept of Variance Analysis. Material price variance The Material…
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A: Variance in direct labour costs means difference in standard labour costs and actual labour costs.
Q: The following information relates to product A: Quantity Unit Price Cost Per Unit…
A: In budgeting, variance analysis is the examination of variations between actual and projected or…
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A: Total Overhead Variance :— It is the difference between budgeted manufacturing Overhead cost for…
Q: The following data relate to direct labor costs for the current period: Standard costs 6,000 hours…
A: Direct labor rate variance is the difference between actual cost at actual hours and standard cost…
Q: The following information pertains to Blue Lion Co's 202x manufacturing operations: Standard direct…
A: Variable overhead efficiency variance = (Actual hours - Standard hours)*Standard rate If the actual…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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- Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead, Machining, and Assembly. The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following: During the year, both Machining and Assembly used 28,000 direct labor hours. Factory overhead costs incurred during the year follow: In determining application rates at the beginning of the year, cost allocations were made as follows, using the sequential distribution method: Building Maintenance to: General Factory Overhead, 10%; Machining, 50%; Assembly, 40%. General factory overhead was distributed according to direct labor hours. Required: Determine the under- or overapplied overhead for each production department. (Hint: First you must distribute the service department costs.)Vargas, Inc., produces industrial machinery. Vargas has a machining department and a group of direct laborers called machinists. Each machinist is paid 25,000 and can machine up to 500 units per year. Vargas also hires supervisors to develop machine specification plans and to oversee production within the machining department. Given the planning and supervisory work, a supervisor can oversee three machinists, at most. Vargass accounting and production history reveal the following relationships between units produced and the costs of direct labor and supervision (measured on an annual basis): Required: 1. Prepare two graphs: one that illustrates the relationship between direct labor cost and units produced, and one that illustrates the relationship between the cost of supervision and units produced. Let cost be the vertical axis and units produced the horizontal axis. 2. How would you classify each cost? Why? 3. Suppose that the normal range of activity is between 2,400 and 2,450 units and that the exact number of machinists is currently hired to support this level of activity. Further suppose that production for the next year is expected to increase by an additional 400 units. How much will the cost of direct labor increase (and how will this increase be realized)? Cost of supervision?Antolini Enterprises produces mens sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and overhead costs for a batch of sports coats. Management has obtained data on the labor costs for four selected jobs over a six-month period. Each selected job represents a similar style and size of sports coat. The data are as follows: a. Determine the direct labor cost per unit for each job. b. Interpret the trend in per-unit labor cost. c. Determine the direct labor hours per sports coat. d. Interpret what may be happening with Job 192.
- Calen Company manufactures and sells three products in a factory of three departments. Both labor and machine time are applied to the products as they pass through each department. The nature of the machine processing and of the labor skills required in each department is such that neither machines nor labor can be switched from one department to another. Calens management is attempting to plan its production schedule for the next several months. The planning is complicated by the fact that labor shortages exist in the community and some machines will be down several months for repairs. Following is information regarding available machine and labor time by department and the machine hours and direct labor hours required per unit of product. These data should be valid for at least the next six months. Calen believes that the monthly demand for the next six months will be as follows: Inventory levels will not be increased or decreased during the next six months. The unit cost and price data for each product are as follows: Required: 1. Calculate the monthly requirement for machine hours and direct labor hours for producing Products 401, 402, and 403 to determine whether or not the factory can meet the monthly sales demand. 2. Determine the quantities of 401, 402, and 403 that should be produced monthly to maximize profits. Prepare a schedule that shows the contribution to profits of your product mix. 3. Assume that the machine hours available in Department 3 are 1,500 instead of 2,700. Calculate the optimal monthly product mix using the graphing approach to linear programming. Prepare a schedule that shows the contribution to profits from this optimal mix. (CMA adapted)Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
- Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next months sales are in the finished goods inventory. Ingles also purchases sufficient materials to ensure that materials inventory is 60 percent of the following months scheduled production. Ingless sales budget in units for the next quarter is as follows: Ingless ending inventories in units for July 31 are as follows: Required: 1. Calculate the number of tables to be produced during August. 2. Disregarding your response to Requirement 1, assume the required production units for August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is 4,000 units. Compute the number of table legs to be purchased in August. 3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees will be required for the Assembly Department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.) (CMA adapted)Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.Cycle Specialists manufactures goods on a job order basis. During the month of June, three jobs were started in process. (There was no work in process at the beginning of the month.) Jobs Sprinters and Trekkers were completed and sold, on account, during the month (selling prices: Sprinters, 22,000; Trekkers, 27,000); Job Roadsters was still in process at the end of June. The following data came from the job cost sheets for each job. The factory overhead includes a total of 1,200 of indirect materials and 900 of indirect labor. Prepare journal entries to record the following: a. Materials used. b. Factory wages and salaries earned. c. Factory Overhead transferred to Work in Process d. Jobs completed. e. Jobs sold.
- Thayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity: Required: Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. For non-value-added activities, indicate why they are non-value-added.Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of 10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April: a. Materials issued to Assembly, 24,000 b. Direct labor cost: Assembly, 500 hours at 9.20 per hour; Finishing, 400 hours at 8 per hour c. Overhead applied to production d. Goods transferred to Finishing, 32,500 e. Goods transferred to finished goods warehouse, 20,500 f. Actual overhead incurred, 10,000 Required: 1. Prepare the required journal entries for the preceding transactions. 2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each departments ending work-in-process inventories.Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?