O Corpus Christi Bicycle Company manufactures commuter bicycles from recycled materials. Corpus Christi Bicycle Company records standard costs in its accounts. The following data for March are available: Quantity of direct labor used. Actual rate for direct labor Bicycles completed in March Standard direct labor per bicycle Standard rate for direct labor 780 hrs. $14.10 per hr. 370 bicycles 2 hrs. $14.40 per hr. a. Determine for March the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance b. How much direct labor should be debited to Work in Process? Direct Labor Variances

O Corpus Christi Bicycle Company manufactures commuter bicycles from recycled materials. Corpus Christi Bicycle Company records standard costs in its accounts. The following data for March are available: Quantity of direct labor used. Actual rate for direct labor Bicycles completed in March Standard direct labor per bicycle Standard rate for direct labor 780 hrs. $14.10 per hr. 370 bicycles 2 hrs. $14.40 per hr. a. Determine for March the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance b. How much direct labor should be debited to Work in Process? Direct Labor Variances

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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Required:1. Calculate the predetermined overhead rate based on direct labor cost.2. Calculate the ending balance for each job as of August 31.3. Calculate the ending balance of Work in Process as of August 31.4. Calculate the cost of goods sold for August.5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairle’s sales revenuefor August.
roduction reports for the third quarter show the following data: Month Machine hours Direct labour hours Direct materials cost (£) Floor surface (square meters) Actual Overhead (£) July 10,000 44,000 25,000 150 31,200 August 15,000 37,800 21,750 170 47,000 September 13,400 59,500 32,000 210 40,100 Which variable would be the most likely basis for allocating overhead? a. Machine hours b. Labour hours c. Floor surface d. Direct materials cost
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost inthe shop. The standard labor cost for a motor tune-up is given below:Standard Standard StandardJob Hours Rate CostMotor tune-up .................... 2.5 $9.00 $22.50The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However,the shop supervisor recalls that 50 tune-ups were completed during the week, and the controller recalls thefollowing variance data relating to tune-ups:Labor rate variance .............. $87 FTotal labor variance .............. $93 URequired:1. Determine the number of actual labor-hours spent on tune-ups during the week.2. Determine the actual hourly rate of pay for tune-ups last week.(Hint: A useful way to proceed would be to work from known to unknown data either by using the varianceformulas or by using the columnar format shown in Exhibit 9–6.)
Cavy Company estimates that total factory overhead costs will be $572,128 for the year. Direct labor hours are estimated to be 94,100. a. Determine the: 1. Predetermined factory overhead rate. Round your answer to the nearest cent.$fill in the blank acece905b02a058_1 per labor hour 2. Amount of factory overhead applied to Job 345 if the amount of direct labor hours is 1,200 and Job 777 if the amount of direct labor hours is 3,300. Job 345 $fill in the blank acece905b02a058_2 Job 777 $fill in the blank acece905b02a058_3 b. Journalize the entry to apply factory overhead for April, assuming Jobs 345 and 777 are the only jobs in production during the month. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select -
Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Multiple Choice O $15.60. O Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department? $3.40 Assembly 190,000 DLH 390,000 MH $16.10. $ 390,000 Finishing) 149,000 DLH: 95,550 MH $ 581,100
Your Company uses a predetermined overhead rate based on direct labor hours. The POR is $10 per direct labor hour. Use the following information to determine by how much the manufacturing overhead cost for the current year will be over or under applied. Direct labor-hours: Estimated for the year 25,000 Actual hours worked 25,600 Direct labor cost: Estimated for the year $300,000 Actual cost incurred $210,000 Manufacturing overhead: Estimated for the year $250,000 Actual cost incurred $252,000 The manufacturing overhead cost for the current year will be: O $6,000 under applied O $6,000 over applied O $4,000 over applied O $4,000 under applied
Castform Microcircuit Manufacturing Inc uses direct labor cost (DLP) for its overhead rate. The production data for the month of April is as follows: Estimated MOH costs * 375,000 Estimated allocation base ? Predetermined overhead rate P 125 per DLP ? Actual amount of allocation base > 425,500 Actual manufacturing overhead Applied manufacturing overhead P 415,000 Over or (under) applied overhead ? Castform's Over (Under) Applied Overhead is ** INDICATE in the solution sheet whether MOH is OVERAPPLIED or UNDERAPPLIED. CAUTION: If the answer is UNDERAPPLIED encode the minus sign before the numerical answer. Do not place any spaces.
Archer Company produces leather jacket for individual and corporation. On September 1st 2016, three jobs are in process, with cost as follows in USD attached on picture below Questions : a. If the allocation base that the company use is direct materials, calculate the budgeted overhead rate b. Calculate the Manufacturing Overhead Cost for each job and the total of MOH allowed c. Calculate the total cost of WIP at the end of September 2016
Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: The average shop direct labor rate is 37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead rate so that factory overhead may be applied to production during the month. It calculates the overhead using three different methods and then decides which one to use. Total estimated factory overhead costs are 600,000. Total estimated direct labor hours are 30,000. Total estimated direct labor costs are 1,200,000. Total machine hours are estimated to be 200,000. Calculate the predetermined overhead application rates based on (1) direct labor hours, (2) direct labor costs, and (3) machine hours.
During August, Skyler Company worked on three jobs. Data relating to these three jobs follow: Overhead is assigned on the basis of direct labor hours at a rate of 2.30 per direct labor hour. During August, Jobs 39 and 40 were completed and transferred to Finished Goods Inventory. Job 40 was sold by the end of the month. Job 41 was the only unfinished job at the end of the month. Required: 1. Calculate the per-unit cost of Jobs 39 and 40. (Round unit costs to nearest cent.) 2. Compute the ending balance in the work-in-process inventory account. 3. Prepare the journal entries reflecting the completion of Jobs 39 and 40 and the sale of Job 40. The selling price is 140 percent of cost.