Chemical Incorporated. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Per Bag $ 6.00 6.30 Direct materials: 25 pounds XF-2000 @ $0.24/pound Direct labor: 0.21 hour @ $38/hour The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 21,405 direct labor hours. During the month, the firm purchased 3,000,000 pounds of XF-2000 at $0.155 per pound and incurred a total payroll of $749,175 for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase. Required: aterials and the rate and efficiency variances for direct labor.
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- Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the manufacturing of 360,000 small blankets and 120,000 large blankets. What is the predetermined overhead rate if a small blanket takes 2 hours of direct labor and a large blanket takes 3 hours of direct labor?Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units of Kings, which retails for $170. The direct materials cost is $20 per unit of Aces and $15 per unit of Kings. The labor rate is $30 per hour, and Five Card Draw estimated 64000 direct labor hours. It takes 4 direct labor hours to manufacture Aces and 3 hours for Kings. The total estimated overhead is $128,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. How much is the gross profit per unit for Aces and Kings? B. What is the total gross profit for the year?
- Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product It manufactures. Direct materials (15 lbs. @ $4 per lb.) Direct labor (2 hrs. @ $15 per hr.) During May the company incurred the following actual costs to produce 8,100 units. Direct materials (125,300 lbs. @ $3.80 per lb.) Direct labor (20,400 hrs. @ $15.10 per hr.). AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ - Actual Quantity SQ - Standard Quantity = AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance. Round "Rate per hour" answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. 0 $60…Kildare Company manufactures 100-pound bags of mulch that have the following unit standard costs for direct materials and direct labor: Line Item Description Cost Direct materials (100 lbs. @ $0.40 per lb.) $40.00 Direct labor (0.5 hr. at $18.00 per hour) 9.00 Total standard prime cost per 100-lb. bag $49.00 The following activities were recorded for October: 2,000 bags were manufactured. 190,000 lbs. of materials costing $70,000 were purchased. 205,000 lbs. of materials were used. $19,000 was paid for 950 hours of direct labor. There were no beginning or ending work-in-process inventories.What is the labor efficiency variance for Kildare Company? a. $1,900 U b. $1,000 U c. $900 F d. $1,000 FMcDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor: Direct materials (100 lbs. @ $1.00 per lb.) $100.00 Direct labor (0.5 hours at $24 per hour) 12.00 Total standard prime cost per 100-lb. bag $112.00 The following activities were recorded for October: 1,000 bags were manufactured. 95,000 lbs. of materials costing $76,000 were purchased. 102,500 lbs. of materials were used. $12,000 was paid for 475 hours of direct labor. There were no beginning or ending work-in-process inventories. Required: A. Compute the direct materials variances. Materials price variance $fill in the blank 1 Favorable Materials usage variance $fill in the blank 3 Unfavorable B. Compute the direct labor variances. Labor rate variance $fill in the blank 5 Unfavorable Labor efficiency variance $fill in the blank 7 Favorable
- Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours @ $15 per hour) During June the company incurred the following actual costs to produce 8,100 units. Direct materials (124,000 pounds @ $3.80 per pound) Direct labor (29,200 hours @ $15.15 per hour) AR = Actual Rate SR=Standard Rate AQ=Actual Quantity SQ=Standard Quantity AP = Actual Price SP=Standard Price $ 60 45 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Required 1 Required 2 $ 471,200 442,380 Complete this question by entering your answers in the tabs below. Actual Cost Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance b unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Standard CostHuron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 4.6 pounds $2.50 per pound $11.50 Direct labor 0.2 hours $18.00 per hour $3.60 During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. All of the material purchased was used to produce 4,000 units of Zoom. 750 hours of direct labor time were recorded at a total labor cost of $14,925. Required: Compute the materials price and quantity variances for the month. Compute the labor rate and efficiency variances for the month. EXERCISE 10–7 Direct Materials Variances LO10–1 Refer to the data in Exhibit 10–6. Assume that instead of producing 4,000 units during the month, the company produced only 3,000 units, using 14,750 pounds of…Jean Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor. Direct materials: 2.5 meters @ P14 per meter DIrect Labor: 1.6 hours @ P8 per hour P35.00 P12.80 During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows: 50,000 meters of materials were purchased at a cost of P13.80 per meter. 40,000 meters of materials were used. 25,000 direct labor hours were used at a cost of P8.60 per hour. Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.
- Linis Company produces a commercial cleaning compound known as Zide. The direct materials and direct labor standards for one unit of Zide are as follows: Standard Qty Standard Price Standard Cost 4.6 lbs P 11.50 7.00 Direct Materials P2.5/lb Direct Labor 0.2 hr 35/ hr During the most recent month, the following activity was recorded: [a] Twenty thousand pounds of material were purchased at a cost of P2.35 per pound. [b] All of the materials purchased was used to produce 4,000 units of Zide. [c] 750 hours of direct labor time were recorded at a total labor cost of P30,375. Compute for the direct labor efficiency variance. Indicate whether favorable or unfavorable.Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $5 per pound) $ 75 Direct labor (3 hours @ $16 per hour) 48 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (123,900 pounds @ $4.80 per pound) $ 594,720 Direct labor (27,700 hours @ $16.10 per hour) 445,970 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) Direct labor (3 hours @ $15 per hour) During June the company incurred the following actual costs to produce 8,300 units. Direct materials (119,100 pounds @ $4.70 per pound) Direct labor (28,600 hours @ $15.20 per hour) AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $70 45 $ 559,770 434,720