MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 8, Problem 8E
Exercise 21-8 Standard unit cost; total variance C2
A manufactured product has the following information for June.
| Standard | Actual | |
| Direct materials …………… | 6 lbs. @ $8 per lb. | 48,500 lbs. @ $8, 10 per lb. |
| Direct labor ……………….. | 2 hrs. @ $16 per hr. | 15,700 hrs. @ $16, 50 per hr. |
| Overhead …………………. | 2 hrs. @ $ 12 per hr. | $ 198,000 |
| Units manufactured ………… | 8,000 |
Compute the (1)
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a. 9,000 units were produced
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c. There was no beginning inventory and no ending iInventory of raw materials
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Graw
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Tovar Corporation makes a product with the following standard costs:
Standard Quantity
or Hours
Direct materials
Direct labor
Variable overhead
Multiple Choice
The company reported the following results concerning this product in June.
Originally budgeted output
Actual output
Raw materials used in production
Purchases of raw materials
$2,140 U
6.5 ounces
0.2 hours
0.2 hours
$1,820 U
Standard Price Standard Cost
or Rote
Per Unit
$2,140 F
$2.00 per ounce
$23.00 per hour
$6.00 per hour
19,380 ounces
21,400 ounces
Actual direct labor-hours
500 hours
Actual cost of raw materials purchases
$40,660
Actual direct labor cost
$12,050
$3,100
Actual variable overhead cost
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the
The materials price variance for June is:
2,700 units
2,800 units
$13.00
$4.60
$1.20
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Appendix
EX 20-28
Cost per equivalent unit: average cost method
The following information concerns production in the Forging Department for June. The
Forging Department uses the average cost method.
ACCOUNT NO.
ACCOUNT Work in Process-Forging epartment
Balance
Debit
Credit
Debit
Credit
Date
Item
5,000
June
1
Bal., 500 units, 40% completed
30
Direct materials, 3,700 units
49,200
54,200
30
Direct labor
25,200
79,400
104,520
Factory overhead
Goods transferred, 3,600 units
30
25,120
30
30
Bal., 600 units, 70% completed
a. Determine the cost per equivalent unit.
b. Determine cost of units transferred to Finished Goods.
Determine the cost of units in ending Work in Proces.
Chapter 8 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - A Company’s standard for a unit of its single...Ch. 8 - Prob. 5MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQ
Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Managers use management by exception for control...Ch. 8 - Tercer report the following on one of its...Ch. 8 - Prob. 9QSCh. 8 - Materials cost variances P2 Juan Company’s output...Ch. 8 - The following information describes a companys...Ch. 8 - Prob. 12QSCh. 8 - Fogel Co. expects 116,000 units for the year. The...Ch. 8 - AizPro Corp, reports the following for November....Ch. 8 - Refer to information in QS 8-14. Compute the...Ch. 8 - Prob. 16QSCh. 8 - A Preparing overhead entries P5 Refer to the...Ch. 8 - Mosaic Company applies overhead using machine...Ch. 8 - Refer to the information from QS 8-18. Compute the...Ch. 8 - Farad, Inc., specializes in selling used SUVs....Ch. 8 - In a recent year, BMW sold 216,944 of its 1 series...Ch. 8 - JPAK Company manufactures and sells mountain...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Exercise 21-8 Standard unit cost; total variance...Ch. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Refer to Exercise 8-13. Hart Company records...Ch. 8 - Prob. 15ECh. 8 - After evaluating Null Companys manufacturing...Ch. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Exercise 21-19 Computation of total overhead rate...Ch. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Phoenix Companys 2015 master budget included the...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 6PSACh. 8 - Tohono Companys 2015 master budget included the...Ch. 8 - Refer to the information in Problem 8-1B. Tohono...Ch. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Problem 21-6BA Materials, labor, and overhead...Ch. 8 - (This serial problem began in Chapter 1 and...Ch. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - The reason we use the words favorable when...Ch. 8 - Prob. 5BTNCh. 8 - Prob. 6BTNCh. 8 - Prob. 7BTNCh. 8 - Prob. 8BTNCh. 8 - Prob. 9BTN
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY