Question

5. A company’s manufacturing plans were as follows:

Units to be manufactured: 1,000 units

Budgeted variable costs: $50,000 [50q ($50 per unit)]

Budgeted fixed costs: $30,000

Budgeted mixed costs: $20,000 [14,000 + 6q ($14,000 fixed + $6 per unit)]

Later, the company actually produced 1,200 units, and incurred variable costs of $52,000; fixed costs of $31,000; and mixed costs of $21,000.

- The flexible budget for 1,200 units will show the total budgeted cost of $_______.
- The amount of the overall spending (total) variance (for all costs together) is $_______
- indicate whether it is favorable or unfavorable.

6. Gyne Company makes Product X using special plastic as the main material. The company made 1,000 units of X using 4,500 lbs of plastic. The plastic actually cost the company $22 per lbs (total $99,000). According to the company’s standards, each unit of X should require 5 lbs of plastic, at a price of $20 per lbs.

(a) What cost of plastic should have been incurred to make 1,000 units of X?

(b) How much is the spending (total) variance?

(c) Is the spending variance favorable or unfavorable?

(d) Compute the price variance

(e) Is the price variance favorable or unfavorable?

(f) Compute the quantity variance

(g) Is the quantity variance favorable or unfavorable?

7. Cyric Company’s labor standard for one unit of a given product is 12 hours, and the standard rate for one hour of labor is $70. The company actually made 300 units of the product, and used 3,300 hours of labor, and incurred $260,000 labor cost.

- Compute the rate variance
- Is the rate variance favorable or unfavorable?
- Compute the efficiency variance
- Is the efficiency variance favorable or unfavorable?
- Compute the spending (total) variance
- Is the spending (total) variance favorable or unfavorable?

8. The Wright Company has a standard costing system. The following data are available:

Actual quantity of direct material.................................................................................... ......................................................................... Actual quantity of direct material purchased and used............................................................................ |
25,000 pounds |

Standard price of direct material....................................................................... |
$2 per pound |

Total material variance |
$7,000, favorable |

Material quantity variance...................................................................... |
$9,500, unfavorable |

The actual price per pound of the direct material is: $_____

Answer #1

please post other questions separately.

The following describes production activities of Mercer
Manufacturing for the year.
Actual direct materials used
30,000 lbs. at $5.15 per lb.
Actual direct labor used
9,150 hours for a total of $186,660
Actual units produced
54,120
Budgeted standards for each unit produced are 0.50 pound of direct
material at $5.10 per pound and 10 minutes of direct labor at
$21.40 per hour.
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
AQ =...

Abbeville Fixture Company manufactures units in a small
manufacturing facility. The units are made from brass.
Manufacturing has 50 employees. Each employee presently provides 40
hours of labor per week. Information about a production week is as
follows: Standard wage per hour $14.4 Standard labor time per unit
20 min. Standard number of lbs. of brass 2.1 lbs. Standard price
per lb. of brass $9.75 Actual price per lb. of brass $10 Actual
lbs. of brass used during the week...

The following describes production activities of Mercer
Manufacturing for the year.
Actual direct materials used
33,000 lbs. at $5.90 per lb.
Actual direct labor used
10,700 hours for a total of $221,490
Actual units produced
63,000
Budgeted standards for each unit produced are 0.50 pound of direct
material at $5.85 per pound and 10 minutes of direct labor at
$21.70 per hour.
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
AQ =...

During June, Danby Company’s material purchases amounted to
6,900 pounds at a price of $7.70 per pound. Actual costs incurred
in the production of 1,500 units were as follows:
Direct labor:
$
120,520
($18.40 per hour)
Direct material:
$
35,420
($7.70 per pound)
The standards for one unit of Danby Company’s product are as
follows:
Direct Labor:
Direct Material:
Quantity, 4 hours per unit
Quantity, 3 pounds per unit
Rate, $18.30 per hour
Price, $7.40 per pound
Required:
Compute the...

Direct Materials, Direct Labor, and Reports budgeted and actual
costs for variable and fixed factory overhead along with the
related controllable and volume variances.Factory Overhead Cost
Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. A detailed
estimate of what a product should cost.Standard costs and actual
costs for direct materials, direct labor, and factory overhead
incurred for the manufacture of 6,800 units of product were as
follows:
Standard Costs
Actual Costs
Direct materials
8,800 lb. at $4.90
8,700...

During June, Danby Company’s material purchases amounted to
6,200 pounds at a price of $7.50 per pound. Actual costs incurred
in the production of 2,100 units were as follows:
Direct labor:
$
121,695
($18.30 per
hour)
Direct material:
$
33,000
($7.50 per pound)
The standards for one unit of Danby Company’s product are as
follows:
Direct Labor:
Direct Material:
Quantity, 3 hours per unit
Quantity, 2 pounds per unit
Rate, $18.20 per hour
Price, $7.20 per pound
Required:
Compute the...

Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small
manufacturing facility. The units are made from brass.
Manufacturing has 30 employees. Each employee presently provides 32
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$16.2
Standard labor time per unit
15 min.
Standard number of lbs. of brass
2.1 lbs.
Standard price per lb. of brass
$9.25
Actual price per lb. of brass
$9.5
Actual...

Exercise 23-5
The standard cost of Product B manufactured by Pharrell Company
includes 2.2 units of direct materials at $6.1 per unit. During
June, 27,200 units of direct materials are purchased at a cost of
$5.90 per unit, and 27,200 units of direct materials are used to
produce 12,200 units of Product B.
(a)
Compute the total materials variance and the price and quantity
variances.
Total materials variance $
Favorable
Unfavorable
Neither favorable nor unfavorable
Materials price variance $
Unfavorable...

Cyric Company’s labor standard for one unit of a given product
is 12 hours, and the standard rate for one hour of labor is $70.
The company actually made 300 units of the product, and used 3,300
hours of labor, and incurred $260,000 labor cost.
(a) Compute the rate variance
(b) Is the rate variance favorable or unfavorable?
(c) Compute the efficiency variance
(d) Is the efficiency variance favorable or unfavorable?
(e) Compute the spending (total) variance
(f) Is the...

1.)
The following company
information is available for March. The direct materials price
variance is:
Direct materials
purchased and used
3,400 feet @ $75 per
foot
Standard costs for
direct materials for March production
3,500 feet @ $73 per
foot
$500 favorable.
$6,800 unfavorable.
$7,000 unfavorable.
$6,800 favorable.
$7,000 favorable.
2.)
Georgia, Inc. has collected the
following data on one of its products. The direct materials
quantity variance is:
Direct materials
standard (3 lbs @ $1/lb)
$ 3...

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