Consider the following data collected for Cari's Rentals: Direct Materials Direct Manufacturing Labor Cost incurred:Actual inputs x Actual prices $210,000 $95,000 Actual inputs x standard prices 214,000 88,000 Standard inputs allowed for actual output x standard prices 220,000 85,000 Required Compute the price and efficiency variances for direct materials: a. Price $10000 U; Efficiency $4000 F b. Price $4000 F; Efficiency $6000 F c. Price $4000 F; Efficiency $10000 U d. Price $5000 F; Efficiency $5000 F Sales $50,000; Variable cost $30,000; Net profit $6,000; fixed cost is_____. a. $10,000. b. $l4,000 . c. $12,000. d. 8,000. Jackie's Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of$60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy product. Estimates for this order include: Direct materials $40,000; 500 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs. Estimated total product costs for this special order equal: a. $96,000 b. None of these answers is correct. c. $80,000
Consider the following data collected for Cari's Rentals: Direct Materials Direct Manufacturing Labor Cost incurred:Actual inputs x Actual prices $210,000 $95,000 Actual inputs x standard prices 214,000 88,000 Standard inputs allowed for actual output x standard prices 220,000 85,000 Required Compute the price and efficiency variances for direct materials: a. Price $10000 U; Efficiency $4000 F b. Price $4000 F; Efficiency $6000 F c. Price $4000 F; Efficiency $10000 U d. Price $5000 F; Efficiency $5000 F Sales $50,000; Variable cost $30,000; Net profit $6,000; fixed cost is_____. a. $10,000. b. $l4,000 . c. $12,000. d. 8,000. Jackie's Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of$60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy product. Estimates for this order include: Direct materials $40,000; 500 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs. Estimated total product costs for this special order equal: a. $96,000 b. None of these answers is correct. c. $80,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 61P: Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a...
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Variance Analysis
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Consider the following data collected for Cari's Rentals: Direct Materials Direct Manufacturing Labor
Cost incurred:Actual inputs x Actual prices $210,000 $95,000
Actual inputs x standard prices 214,000 88,000
Standard inputs allowed for actual output x standard prices 220,000 85,000
Required Compute the price and efficiency variances for direct materials:
Cost incurred:Actual inputs x Actual prices $210,000 $95,000
Actual inputs x standard prices 214,000 88,000
Standard inputs allowed for actual output x standard prices 220,000 85,000
Required Compute the price and efficiency variances for direct materials:
a.
Price $10000 U; Efficiency $4000 F
b.
Price $4000 F; Efficiency $6000 F
c.
Price $4000 F; Efficiency $10000 U
d.
Price $5000 F; Efficiency $5000 F
Sales $50,000; Variable cost $30,000; Net profit $6,000; fixed cost is_____.
a.
$10,000.
b.
$l4,000 .
c.
$12,000.
d.
8,000.
Jackie's Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of$60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy product. Estimates for this order include: Direct materials $40,000; 500 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs.
Estimated total product costs for this special order equal:
Estimated total product costs for this special order equal:
a.
$96,000
b.
None of these answers is correct.
c.
$80,000
d.
$50,000
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