5. Protic Company employs a standard cost system in which direct materials inventory is carriedat standard cost. The company has established the following standards for the prime costs of oneunit of product:Standard QuantityStandard Price Standard CostDirect labor 2.6 hours$44.00/hour$114.40During April, the total factory wages for April were $3,200,000, among those 90% were directlabor cost. The company manufactured 25,000 units of product during April using 64,000 directlabor hours.Required:a) What is the direct labor rate and efficiency variance for April?

Total direct labor cost = Total factory wages x 90% = $3200000*90% = $2880000 Direct labor cost per…

Answered: 5. Protic Company employs a standard…

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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DuRoss Company produces coats. The company uses a standard costing system and has set the following standards for materials and labor: Fabric (8 yards @$6) $48 Direct labor (2 hours @$18) $36 Total prime cost $84 During the year DuRoss produced 55,000 coats. Actual fabric purchased was 460,000 yards at $5.75 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 120,000 at $19.25 per hour. A. Compute the cost of leather and direct labor that should be incurred for the production of 55,000 coats. B. Compute the total budget variances for materials and labor. C. Compute the materials price variance. D. Compute the materials usage variance. E. Compute the labor rate variance. F. Compute the labor efficiency variance.
Regent Corporation uses a standard cost system to account for the costs of its one product. Materials standards are 3 pounds of material at $14.00 per pound, and labor standards are 9 hours of labor at a standard wage rate of $10.5. During July, Regent Corporation produced 3,050 units. Materials purchased and used totaled 10,600 pounds at a total cost of $143,213. Payroll totaled $151,780 for 38,150 hours worked. Required: a. Calculate the direct materials price variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct materials spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero…
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Baird Watches, Incorporated makes watches. Its assembly department started the accounting period with a beginning inventory balance of $25,500. During the accounting period, the department incurred $45,000 of transferred-in cost, $24,000 of materials cost, $68,000 of labor cost, and $40,450 of applied overhead cost. The department processed 6,150 total equivalent units of product during the accounting period. Required (Each requirement is independent of the other.) a. Assuming that 1,300 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly department's cost of ending work in process inventory? b. Assuming that 5,600 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of…
Petrillo Company produces engine parts for large motors and uses standard costing for its production costing and control. The company provided the following information for the month of November: Standards for direct materials per 7 lbs. at $6 per unit Ibs. Parts produced 2,000 units Direct materials purchased 12,000 lbs. at $5.8 per Beginning inventory of direct Ibs. materials 5,000 lbs. Ending inventory of direct materials 2,000 lbs. What is the direct material guantity (usage) variance? O $6,000 U O $30,000 F O $3,000 U O $12,000 F
TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product. Direct Materials Direct Labor Multiple Choice O $34,150 During November, TaskMaster purchased 169,500 pounds of direct materials at a total cost of $610,200. The total factory wages for November were $61,000, 90% of which were for direct labor. TaskMaster manufactured 20,000 units of product during November using 150,000 pounds of direct materials and 5,190 direct labor-hours. What is the direct materials efficiency variance for November? $35,900 $37,000 Standard Quantity 8 pounds 0.25 hour $34,300 Standard Price $ 3.70 per pound $11.80 per hour Standard Cost $ 29.60 2.95 $ 32.55
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The Cool Company uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes: Direct materials - 4 gallons at P8 per gallon Direct labor - 1 hour at P16 per hour During January, the company made 6,000 units of product and incurred the following costs: Direct materials purchased - 26,800 gallons at P8.20 per gallon Direct materials used - 25,200 gallons Direct labor used - 5,600 hours at P15.30 per hour The material price variance for January was (U):________
TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product. Direct Materials Direct Labor Standard Quantity 8 pounds 0.25 hour Standard Price $ 3.80 per pound $ 12.00 per hour Standard Cost $ 30.40 3.00 $ 33.40 During November, TaskMaster purchased 170,000 pounds of direct materials at a total cost of $663.000. The total factory wages for November were $62.000, 90% of which were for direct labor. TaskMaster manufactured 20,100 units of product during November using 150.750 pounds of direct materials and 5.200 direct labor-hours. What is the direct labor rate variance for November? Multiple Choice $1,874 $2,900 $6,600 54.200
Puvo, Incorporated, manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Direct materials Direct labor Variable manufacturing overhead During March, the following activity was recorded by the company: • The company produced 4,200 units during the month. • A total of 21,200 pounds of material were purchased at a cost of $15,380. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,420 pounds of material remained in the warehouse. . During March, 1,270 direct labor-hours were worked at a rate of $48.50 per hour. • Variable manufacturing overhead costs during March totaled $15,861. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Multiple Choice O $2,780 F Standard Quantity…
Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries cost standards Standard Quantity Standard Price Direct materials 4 pounds $5.41 per pound Direct labor 3.11 hours $11.96 per hour Sitka Industries made 2,695 ladders in July and used 8,913 pounds of material to make these units. Smith Industries bought 15,751 pounds of material in the current period. There was a $279 unfavorable direct materials price variance. What is the direct materials quantity variance? Round to the nearest whole dollar, no decimals. If it is an unfavorable variance, enter a positive number. If is a favorable variance, enter a negative number using a - dash not parentheses.

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