The following summarized manufacturing data relate to Lucas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $12.00/lb.) $24 Actual (4,200 lb. @ $12.80/lb.) $53,760 Direct labor Standard (0.5 hr. @ $27/hr.) $13.50 Actual (950 hrs. @ $26/hr.) 24,700 Variable overhead Standard (0.5 hr. @ $9/hr.) $4.50 Actual - 9,450 Total $42 $87,910 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Materials price Answer Answer Materials efficiency Answer Answer Labor Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Labor rate Answer Answer Labor efficiency Answer Answer Variable Overhead Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Variable overhead spending Answer Answer Variable overhead efficiency Answer Answer
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.
The following summarized manufacturing data relate to Lucas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.
| Total Actual Costs | ||||||
|---|---|---|---|---|---|---|
| Direct material | ||||||
| Standard (2 lb. @ $12.00/lb.) | $24 | |||||
| Actual (4,200 lb. @ $12.80/lb.) | $53,760 | |||||
| Direct labor | ||||||
| Standard (0.5 hr. @ $27/hr.) | $13.50 | |||||
| Actual (950 hrs. @ $26/hr.) | 24,700 | |||||
| Variable overhead | ||||||
| Standard (0.5 hr. @ $9/hr.) | $4.50 | |||||
| Actual | - | 9,450 | ||||
| Total | $42 | $87,910 |
Determine the following variances:
Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.
| Materials Variances | ||
|---|---|---|
| Actual cost: | Answer
|
|
| Split cost: | Answer
|
|
| Standard cost: | Answer
|
|
| Materials price | Answer
|
Answer |
| Materials efficiency | Answer
|
Answer |
| Labor Variances | ||
|---|---|---|
| Actual cost: | Answer
|
|
| Split cost: | Answer
|
|
| Standard cost: | Answer
|
|
| Labor rate | Answer
|
Answer |
| Labor efficiency | Answer
|
Answer |
| Variable Overhead Variances | ||
|---|---|---|
| Actual cost: | Answer
|
|
| Split cost: | Answer
|
|
| Standard cost: | Answer
|
|
| Variable overhead spending | Answer
|
Answer |
| Variable overhead efficiency | Answer
|
Answer |
Step by step
Solved in 2 steps with 2 images
