The planning budget for March was based on producing and selling 20,000 units. However, during March the companyactually produced and sold 24,600 units and incurred the following costs:a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.b. Direct-laborers worked 57,000 hours at a rate of $17.00 per hour.C. Total variable manufacturing overhead for the month was $653,220.d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000,respectively.2. What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable; "U" forunfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)Materials quantity variance displayed below.]Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on directlabor-hours and its standard cost card per unit is as follows:Direct material: 5 pounds at $10.00 per pound $ 50.00Direct labor: 4 hours at $16 per hourVariable overhead: 4 hours at $7 per hour64.0028.00Total standard variable cost per unit$142.00The company also established the following cost formulas for its selling expenses:Fixed Cost perVariable Cost perMonth.Unit SoldAdvertisingSales salaries andcommissions$4220,000$.140,00014.00Shipping expenses5.00The planning budget for March was based on producing and selling 20,000 units. However, during March the companyactually produced and sold 24,600 units and incurred the following costs:a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.b. Direct-laborers worked 57,000 hours at a rate of $17.00 per hour.c. Total variable manufacturing overhead for the month was $653,220.d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000,respectively.%24%24

The materials quantity variance by multiplying the standard cost by the difference between the…

The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,600 units and incurred the following costs: a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 57,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $653,220. d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000, respectively. 2. What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable; "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Materials quantity variance

The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,600 units and incurred the following costs: a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 57,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $653,220. d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000, respectively. 2. What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable; "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Materials quantity variance

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 20P: Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Moleno Company produces a single product and uses a standard cost system. The normal production volume is 120,000 units; each unit requires 5 direct labor hours at standard. Overhead is applied on the basis of direct labor hours. The budgeted overhead for the coming year is as follows: At normal volume. During the year, Moleno produced 118,600 units, worked 592,300 direct labor hours, and incurred actual fixed overhead costs of 2,150,400 and actual variable overhead costs of 1,422,800. Required: 1. Calculate the standard fixed overhead rate and the standard variable overhead rate. 2. Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance? 3. CONCEPTUAL CONNECTION Break down the total fixed overhead variance into a spending variance and a volume variance. Discuss the significance of each. 4. CONCEPTUAL CONNECTION Compute the variable overhead spending and efficiency variances. Discuss the significance of each.
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Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
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