Please answer #1,2,3 Problem 11: Materials, Labor and Factory Overhead VariancesJulie Corporation uses a standard cost system and has the following standardvariable costs. Standard Price or RateP6.00 per meterDirect MaterialsDirect LaborVariable Factory OverheadP3.00 per direct labor hourFactory overhead is applied to production based on direct labor hours. Duringthe month of February, 5,000 units were produced and sold to custorners. Thefollowing are the selected production data for the month:MaterialsDirectLaborP52,500VariableusedP84,000P75,000P6,000 UFOHP21,000P18,000Standard Cost allowedActual cost incurredMaterials Quantity varianceActual direct labor hoursStandard FOH rate per direct labor hourStandard Price per meter7,500 hoursP3.00/hr.P6.00 /m.The difference between the standard and actual cost per unit produced is PO.15favorable.Required: Compute the following:1. The standard cost per unit of product.2. The actual cost per unit of product.3. Standard Quantity per unit.4. Material Price variance.5. Standard direct labor rate per hour.6. Labor Rate variance.7. Labor Efficiency variance8. Variable Factory overhead spending variance.9. Variable Factory overhead efficiency variance.

Here in this question, we are required to calculate standard cost, actual cost per unit and standard…

Answered: Required: Compute the following: 1. The…

Required: Compute the following: 1. The standard cost per unit of product. 2. The actual cost per unit of product. 3. Standard Quantity per unit.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter24: Material And Labor Variances (primevar)

Section: Chapter Questions

Problem 1R

See similar textbooks

Related questions

Q: What is equivalent production? Explain in terms of its effect on computed unit costs.

A: Process costing: It is a type of costing method, where the direct costs are accumulated and indirect…

Q: a prod

A: Standard costs are the anticipated costs of manufacturing the product. Standard Direct Materials…

Q: Distinguish between Period cost and Product cost? Give two examples of each cos

A: Classification of costs on the basis of functions:- 1. Product Cost 2. Period Cost

Q: Identify the two types of costs that make upa product’s total cost.

A: Product costs are costs that are incurred to form a product that's supposed available to customers.…

Q: REQUIRED: Compute the weighted units and cost per unit of each product.

A: Weighted Units = Points x Units Cost per Unit = Apportioned Production CostUnits Produced

Q: Equivalent units of production must be calculated before the unit production costs can be computed.

A: The unit product cost is calculated by multiplying the equivalent units by the cost per unit.…

Q: Determine the number of direct labor hours per unit. Determine the contribution margin per direct…

A: Contribution margin per unit = Sales price per unit - Variable costs per unit

Q: What is the relationship between total carrying cost and totalordering cost at the EOQ?

A: It indicates an inverse relationship between the cost of ordering and the cost of holding at…

Q: From the following data find (A) material cost, (B) price cost, (C) direct cost,

A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: the following standard ca ued by the cost accountin standard costing policy of unit Standard cost

Q: Both the equivalent units schedules and the physical flow are prerequisites to calculating the…

A: The question is related to Process Costing. There are two methods of equivalent units 1. FIFO 2.…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Sales…

A: Concept Introduction: Product costs are the costs which are incurred only when a product is…

Q: Need help to calculate the production cost per unit

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: What is target cost per unit? Question content area bottom

A: Target cost is the cost which is sufficient to develop specified functionality and quality of a…

Q: Which one of the following activity shows semi-variable cost behaviour A. Unit level activity B.…

A: A semi-variable cost, also known as a semi-fixed cost or a mixed cost, is a cost composed of a…

Q: The gross-margin format is used for A. mixed costing income statement B. absorption costing income…

A: Gross Margin In simple term gross margin is deduct the amount from the total revenue to cost of…

Q: true (T) or false (F) The cost per equivalent unit is computed as the total costs of a process…

Q: Determine the following is best described as a fixed, variable, or mixed cost with respectto product…

A: Definition: Variable cost: The cost which changes with the change in the level of activity is called…

Q: What is the difference between a product cost and a period cost? Give three examples of each. 2.…

A: The costs can be classified as classified as product cost, period cost, direct costs or indirect…

Q: What is the purpose for determining the cost per equivalent unit?

A: Equivalent units of production are applied to the work-in process inventory at the end of an…

Q: Which of the following formulae is used to calculate the cost per equivalent unit of production…

A: Equivalent units of production = Fully and partially completed units expressed as , % of fully…

Q: che $ cost per unit for the items purchased from THE SUPPLIER is

A: The cost function is a function that is used to show how production expense will change at different…

Q: calculate the total product cost per unit under variable costing.

A: Total product cost per unit is the cost of the unit which has been incurred by the company in order…

Q: The first step in determining the cost per EUP per cost component under the weighted average method…

A: Introduction:- EUPs shows the number of completed goods that could have been produced using the…

Q: The first step in applying the average cost method when computing for the unit cost is to: a. Add…

A: The question is related to Process Costing method. The average cost method assigns total cost of…

Q: Using ABC, the total manufacturing costs per unit for product SuperPro is:

A: Calculation of Overhead Cost Per Unit of Cost Driver: Cost Item Cost Driver Cost Driver Units…

Q: Classify each cost element as either fixed, variable, or mixed

A: Variable Cost: variable cost is the cost that varies in total cost with change in the unit…

Q: Weighted-average cost per unit

A: Inventory: Inventory means to stock it may be raw materials, work-in-process or finished goods Goods…

Q: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable…

A: Workings Particulars Lower limit Upper limit Using High-low method Variable Fixed…

Q: When materials costs differ significantly among products in a value stream, the valuestream product…

A: In contrast to traditional costing, value stream costing is an accounting technique for tracking…

Q: What is meant by the term equivalent units of production when the weighted-average method is used?

Q: 1.Based on the data above. What is the total conversion cost? 2.Based on the data above. What is…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: Using the above information derive a cost function that can be used to predict the total production…

A: High-low cost estimation method is used to segregate the fixed cost and variable cost element in…

Q: a) Compute contribution margin per pound of material for each product. (b) If demand is limited,…

A: Contribution Margin per Limited resource Contribution margin per unit of limited resource is…

Q: Describe different types of cost behavior in relation to production and sales volume.

A: Introduction: Cost behavior: Cost behavior refers to the indicator that reflects the information…

Q: Required: Compute the unit product cost under absorption costing. Compute the unit product cost…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: Which of the following material issue pricin method considers the prices as well as the quantities…

A: Solution: "Weighted average method" considers the prices as well as the quantities of materials…

Q: compute the cost per equivalent unit

A: Units completed = 3000 units Normal Spoilage = 700 units Ending inventory (100% Direct Material) =…

Q: Compute for the total cost accounted for using FIFO.

A: First in First out Method(FIFO)- Under this method of calculating the cost of goods transferred and…

Q: . Assume the company uses absorption costing. Determine its product cost per unit.

A: In order to obtain the product cost under absorption costing, first the per-unit costs are added…

Q: What does the target full product cost include?

A: Definition: Target full product cost: The target cost is the maximum cost of a product that can…

Q: Explain need for calculating more than one equivalent units of production.

Q: Equivalent units of production must be calculated before the unit production costs can be computed.…

Q: he number of units produced, or the number of units sold describes: a. Cost behavior b. Activity…

A: Ans. Activities in business or manufacturing concerns are described as the number of units produced…

Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…

A: Gross profit means the difference between the sale revenue and cost of goods sold where as net…

Q: Please answer the following: 1. What is cost of production report? 2. What is cost per equivalent…

A: Since you have posted a question with multiple subparts, we have solved the first three subparts for…

Q: Given Belle Company's data, compute cost per unit of finished goods under absorption costing.

A: Absorption (full) costing is a costing technique in which all the manufacturing costs including…

Question

Please answer #1,2,3

Problem 11: Materials, Labor and Factory Overhead Variances
Julie Corporation uses a standard cost system and has the following standard
variable costs.

Standard Price or Rate
P6.00 per meter
Direct Materials
Direct Labor
Variable Factory Overhead
P3.00 per direct labor hour
Factory overhead is applied to production based on direct labor hours. During
the month of February, 5,000 units were produced and sold to custorners. The
following are the selected production data for the month:
Materials
Direct
Labor
P52,500
Variable
used
P84,000
P75,000
P6,000 U
FOH
P21,000
P18,000
Standard Cost allowed
Actual cost incurred
Materials Quantity variance
Actual direct labor hours
Standard FOH rate per direct labor hour
Standard Price per meter
7,500 hours
P3.00/hr.
P6.00 /m.
The difference between the standard and actual cost per unit produced is PO.15
favorable.
Required: Compute the following:
1. The standard cost per unit of product.
2. The actual cost per unit of product.
3. Standard Quantity per unit.
4. Material Price variance.
5. Standard direct labor rate per hour.
6. Labor Rate variance.
7. Labor Efficiency variance
8. Variable Factory overhead spending variance.
9. Variable Factory overhead efficiency variance.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent?
Kamen Manufacturing Co. estimates the following labor and overhead costs for the period: Required: Use the four-variance method for overhead analysis. Calculate the variances for direct labor and overhead. Prove that the overhead variances equal over- or underapplied factory overhead for the period.
If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent?
A. Describe the two variances between the actual costs and the standard costs for factory overhead. B. What is a factory overhead cost variance report?
(Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate the following overhead variances: a. Spending variance. b. Production-volume variance. c. Efficiency variance. d. Was the factory overhead under- or overapplied? By what amount? In all problems involving variances, use F and U to indicate favorable and unfavorable variances, respectively.
The fixed factory overhead variance is caused by the difference between which of the following? A. actual and standard allocation base B. actual and budgeted Units C. actual fixed overhead and applied fixed overhead D. actual and standard overhead rates
Performance Report for Variable Variances Humo Company provided the following information: Required: Prepare a performance report that shows the variances for each variable overhead item (inspection and power).
Performance Report for Variable Variances Potter Company provided the following information: Required: Prepare a performance report that shows the variances for each variable overhead item (inspection and power).
Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Branch Company provided the following information: Required: 1. Using the columnar approach, calculate the fixed overhead spending and volume variances. 2. Using the formula approach, calculate the fixed overhead spending variance. 3. Using the formula approach, calculate the fixed overhead volume variance. 4. Calculate the total fixed overhead variance.
(Appendix 10A) Which of the following is true concerning labor variances that are not material in amount? a. They are closed to Cost of Goods Sold. b. They are prorated among Work in Process, Finished Goods, and Cost of Goods Sold. c. They are prorated among Materials, Work in Process, Finished Goods, and Cost of Goods Sold. d. They are reported on the balance sheet at the end of the year. e. All of these.
Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Corey Company provided the following information: Required: 1. Using the columnar approach, calculate the fixed overhead spending and volume variances. 2. Using the formula approach, calculate the fixed overhead spending variance. 3. Using the formula approach, calculate the fixed overhead volume variance. 4. Calculate the total fixed overhead variance.
Mulliner Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.