Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134642932
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 23, Problem P23.27APGA
Computing
1. DM Eff. Var. 5150F
Hear Smart manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data:
Standard Cost Information
| Quantity | Cost | |
| Direct Materials | 2 parts | $ 0.15 per part |
| Direct Labor | 0.02 hours | 8.00 per hour |
| Variable Manufacturing |
0.02 hours | 10.00 per hour |
Fixed Manufacturing Overhead ($28,500 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour)__________________________________________________________________
Actual Cost Information
| Direct Materials | (209,000 parts @ $0.20 per part) | $41,800 |
| Direct Labor | (1.600 hours @ $8.15 per hour) | 13,040 |
| Variable Manufacturing Overhead | 9,000 | |
| Fixed Manufacturing Overhead | 26,000 |
Requirements
1. Compute the cost and efficiency variances for direct materials and direct labor.
2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances.
3. Hear Smart’s management used better quality materials during September. Discuss the trade-off between the two direct material variances.
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Please answer parts 5-8 according to the images attached below.
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost
Direct materials
?
$ 5.00
per yard
$ ?
Direct labor
?
?
?
Variable manufacturing overhead
?
$ 2
per direct labor-hour
?
Total standard cost per unit
$ ?
Overhead is applied to production on the basis of direct labor-hours. During March, 780 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:
Materials Used
Direct Labor
Variable Manufacturing Overhead
Total standard cost allowed*
$ 15,600
$ 13,104
$ 2,496
Actual costs incurred
$ 13,112
?
$ 5,491
Materials price variance
?
Materials quantity variance
$ 790
U
Labor rate variance
?
Labor efficiency variance
?
Variable…
eBook
Direct Materials and Direct Labor Variance Analysis
Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet Industries has 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
Standard wage per hour
$12.60
Standard labor time per faucet
10 min.
Standard number of lbs. of zinc
2 lbs.
Standard price per lb. of zinc
$10.25
Actual price per lb. of zinc
$10.50
Actual lbs. of zinc used during the week
14,200 lbs.
Number of faucets produced during the week
6,900
Actual wage per hour
$13.00
Actual hours per week
1,800 hrs.
Required:
a. Determine the standard cost per faucet for direct materials and direct labor. Do not round intermediate calculations and round your answers to the nearest cent.
Direct materials standard cost per faucet
$fill in the blank 1
Direct labor standard cost per faucet
fill in the blank 2…
Please show work
Cookie Business
Actual Total Cost of Direct Materials
$ 225,000
Standard Total Cost of Direct Materials
$ 224,800
Actual Materials Used
30
Standard Materials Used
31
Actual Direct Labor Rate
$ 15.50
Standard Labor Rate
$ 15.00
Actual Hours Worked
45
Standard Hours Worked
40
Amount
Favorable/ Unfavorable
Calculate Materials Variances:
Materials Price Variance
$ ???
???
Materials Quantity Variance
??
???
Calculate Labor Variances:
Labor Rate Variance
$ ??
??
Labor Efficiency Variance
$ ??
???
Chapter 23 Solutions
Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
Ch. 23 - Prob. 1QCCh. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems has budgeted three hours of...Ch. 23 - MajorNet Systems has budgeted three hours of...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - The person probably most responsible for the...
Ch. 23 - HajorNet System’s static budget predicted...Ch. 23 - What is a variance?Ch. 23 - Explain the difference between a favorable and an...Ch. 23 - What is a static budget performance report?Ch. 23 - How do flexible budgets differ from static...Ch. 23 - How is a flexible budget used?Ch. 23 - What are the two components of the static budget...Ch. 23 - What is a flexible budget performance report?Ch. 23 - What is a standard cost system?Ch. 23 - Explain the difference between a cost standard and...Ch. 23 - Give the general formulas for determining cost and...Ch. 23 - How does the static budget affect cost and...Ch. 23 - List the direct materials variances, and briefly...Ch. 23 - List the direct labor variances, and briefly...Ch. 23 - List the variable overhead variances, and briefly...Ch. 23 - List the fixed overhead variances, and briefly...Ch. 23 - How is the fixed overhead volume variance...Ch. 23 - What is management by exception?Ch. 23 - List the eight product variances and the manager...Ch. 23 - Briefly describe how journal entries differ in a...Ch. 23 - What is a standard cost income statement?Ch. 23 - Matching terms Learning Objective 1 Match each...Ch. 23 - Preparing flexible budgets Learning Objective 1...Ch. 23 - Calculating flexible budget variances Learning...Ch. 23 - Matching terms Learning Objective 2 Match each...Ch. 23 - Identifying the benefits of standard costs...Ch. 23 - Calculating materials variances Learning Objective...Ch. 23 - Calculating labor variances Learning Objective 3...Ch. 23 - Interpreting material and labor variances Learning...Ch. 23 - Computing standard overhead allocation rates...Ch. 23 - Computing overhead variances Learning Objective 4...Ch. 23 - Understanding variance relationships Learning...Ch. 23 - Journalizing materials entries Learning Objectives...Ch. 23 - Journalizing labor entries Learning Objectives 6...Ch. 23 - Preparing a standard cost income statement...Ch. 23 - Preparing a flexible budget Learning Objective 1...Ch. 23 - Preparing a flexible budget performance report...Ch. 23 - Preparing a flexible budget performance report...Ch. 23 - Defining the benefits of setting cost standards...Ch. 23 - Calculating materials and labor variances Learning...Ch. 23 - Computing overhead variances Learning Objective 4...Ch. 23 - Calculating overhead variances Learning Objective...Ch. 23 - Preparing a standard cost income statement...Ch. 23 - Preparing journal entries Learning Objective 6 MOH...Ch. 23 - Preparing a standard cost income statement...Ch. 23 - Preparing a flexible budget performance report...Ch. 23 - Preparing a flexible budget computing standard...Ch. 23 - Computing standard cost variances and reporting to...Ch. 23 - Computing and journalizing standard cost variances...Ch. 23 - Prob. P23.29APGACh. 23 - Preparing a flexible budget performance report...Ch. 23 - Preparing a flexible budget and computing standard...Ch. 23 - Prob. P23.32BPGBCh. 23 - Prob. P23.33BPGBCh. 23 - Preparing a standard cost income statement...Ch. 23 - Prob. P23.35CTCh. 23 - Preparing a flexible budget and performance report...Ch. 23 - Prob. 23.1TIATCCh. 23 - Decision Case 23-1 Suppose you manage the local...Ch. 23 - Fraud Case 23-1 Drew Castello, general manager of...
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