Diane Buswell examined some of the accounting records and reported that Current Designs purchased 1,400 pounds of polyethylene powder for this order at a total cost of $3,640. Twenty Five (25) finishing kits were assembled at a total cost of $4,400. The payroll records showed that the type I employees worked 98 hours on this project at a total cost of $1,274. The type Il finishing employees worked 131 hours at a total cost of $1,408.25. A total of 25 kayaks were produced for this order. The standards that had been developed for this model of kayak were used in CD2 and are reproduced here. For each kayak: 52 pounds of polyethylene powder at $2.50 per pound 1 finishing kit (rope, seat, hardware, etc.) at $184 4 hours of type I labor from people who run the oven and trim the plastic at a standard wage rate of $13 per hour 5 hours of type Il labor from people who attach the hatches and seat and other hardware at a standard wage rate of $10 per hour.

Diane Buswell examined some of the accounting records and reported that Current Designs purchased 1,400 pounds of polyethylene powder for this order at a total cost of $3,640. Twenty Five (25) finishing kits were assembled at a total cost of $4,400. The payroll records showed that the type I employees worked 98 hours on this project at a total cost of $1,274. The type Il finishing employees worked 131 hours at a total cost of $1,408.25. A total of 25 kayaks were produced for this order. The standards that had been developed for this model of kayak were used in CD2 and are reproduced here. For each kayak: 52 pounds of polyethylene powder at $2.50 per pound 1 finishing kit (rope, seat, hardware, etc.) at $184 4 hours of type I labor from people who run the oven and trim the plastic at a standard wage rate of $13 per hour 5 hours of type Il labor from people who attach the hatches and seat and other hardware at a standard wage rate of $10 per hour.

Name: VOUS prema oganswers to O decimal places, e.g. 25.)Quantity variance
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Description: VOUS prema oganswers to O decimal places, e.g. 25.)Quantity variance for polyethylene powderPrice variance for polyethylene powderQuantity variance for finishing kitsPrice variance for finishing kitsQuantity variance for type I workersPrice variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Diane Buswell examined some of the accounting records and reported that Current Designs purchased 1,190 pounds of polyethylene powder for this order at a total cost of $2,023. Twenty (20) finishing kits were assembled at a total cost of $3,220. The payroll records showed that the type I employees worked 56 hours on this project at a total cost of $784. The type Il finishing employees worked 87 hours at a total cost of $978.75. A total of 20 kayaks were produced for this order. The standards that had been developed for this model of kayak were used in CD2 and are reproduced here. For each kayak: 52 pounds of polyethylene powder at $1.50 per pound 1 finishing kit (rope, seat, hardware, etc.) at $168 3 hours of type I labor from people who run the oven and trim the plastic at a standard wage rate of $14 per hour 4 hours of type Il labor from people who attach the hatches and seat and other hardware at a standard wage rate of $11 per hour. Calculate the eight variances that are listed…
The Talbott Company has received an order for 100 widgets. On January 20 the shop supervisor requisitioned 100 units of part 503 at a cost of $5 per unit and 500 units part 456 at a cost of $3 per unit to begin work on the 100 widgets. On the same day 20 hours of direct labor at $20 per hour are used to work on the widgets. On January 21, 200 units of part 543 at S6 per unit are requisitioned and 10 hours of direct labor at $15 per hour are performed on the 100 units of widgets to complete the job. Overhead is allocated to the job based on $5 per direct labor hour. What is the total job cost? a. $4000 b. $3,900 C $3000 d. $2,900 What is the total cost for direct labor? a. $600 b. $500 c. $550 d. $650
The Talbott Company has received an order (#324) for 100 widgets. On January 20 the shop supervisor requisitioned 100 units of part 503 at a cost of $5 per unit and 500 units part 456 at a cost of $3 per unit to begin work on the 100 widgets. On the same day 20 hours of direct labor at $20 per hour are used to work on the widgets. On January 21, 200 units of part 543 at S6 per unit are requisitioned and 10 hours of direct labor at $15 per hour are performed on the 100 units of widgets to complete the job. Overhead is allocated to the job based on $5 per direct labor hour. Make a job order cost sheet for the 100 widgets.
Cavy Company estimates that the factory overhead for the following year will be $768,900. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 23,300 hours. The total machine hours for the year were 200,000. The actual factory overhead for the year was 700,000. 1)Calculate the predetermined overhead rate to apply factory overhead. 2)Determine the factory overhead applied to Job 150 if the amount of direct labor hours is 720 and to Job 300 if the amount of direct labor hours is 2000. Complete the journal entry to record the overall applied factory overhead. 3)Compute the over-or underapplied amount for the year.
Taylor Enterprises purchased 56,000 pounds (cost= $420,000) of direct material to be used in the manufacture of the company's sole product. According the production specifications, each completed unit requires five pounds of direct material at a standard cost of $7.80 per pound. Direct materials consumed by the end of the period totaled 53,500 pounds in the manufacture of 10,900 finished units. An examination of Taylor's payroll records revealed that the company worked 22,000 labor hours (cost= $319,000) during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of $14.80 per hour. Assume that the company computes variances at the earliest point in time. Taylor's direct-labor efficiency variance was: A. $2,900F B. $2,900U C. $2,960F D. $2,960U E. None of the answers are correct.
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Warner Company purchases $ 50,000 of raw materials on account, and it incurs $ 60,000 of factory labor costs. Supporting records show that (a) the Assembly Department used $ 24,000 of the raw materials and $ 35,000 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs.Journalize the assignment of overhead to the Assembly and Finishing Departments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit Mar.31 enter an account title for the journal entry on March 31 enter a debit amount enter a credit amount enter an account title for the journal entry on March 31 enter a debit amount enter a credit amount enter an account title for the journal entry on March 31 enter a debit amount enter a credit amount
Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $ 6,000 Direct labor $ 20,000 Rent on factory building $ 15,000 Sales salaries $ 25,000 Depreciation on factory equipment $ 8,000 Indirect labor $ 12,000 Production supervisor's salary $ 15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:
Huron Company produces a commercial cleaning compound known as Zoom. The direct materialsand direct labor standards for one unit of Zoom are given below: (picture) During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. b. All of the material purchased was used to produce 4,000 units of Zoom. c. 750 hours of direct labor time were recorded at a total labor cost of $10,425. Required:1. Compute the materials price and quantity variances for the month.2. Compute the labor rate and efficiency variances for the month.
Cavy Company estimates that the factory overhead for the following year will be $768,900. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 23,300 hours. Calculate the predetermined overhead rate to apply factory overhead. 2)Determine the factory overhead applied to Job 150 if the amount of direct labor hours is 720 and to Job 300 if the amount of direct labor hours is 2000. Complete the journal entry to record the overall applied factory overhead. 3)Compute the over-or underapplied amount for the year.
Ivanhoe Company purchases $54,000 of raw materials on account, and it incurs $64,800 of factory labor costs. Supporting records show that (a) the Assembly Department used $25,920 of direct materials and $37,800 of direct labor, and (b) the Finishing Department used the remainder. Journalize the assignment of the costs to the processing departments on March 31. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 31 31 (To record materials used) (To assign factory labor to production) Debit Credit