Augusta Sports manufactures baseball caps. The company uses standards to control costs. The labor standards for one baseball cap are as follows: Standard Hours 15 minutes Standard Rate per Hour $15 per hour The budgeted variable overhead rate is $5 per direct labor hour. During the current month, the company incurred $21,747 in variable manufacturing overhead costs. During the current month, 4,997 direct labor hours were needed to manufacture 20,198 baseball caps. Direct labor costs totaled $102,000 for the month. Compute the variable overhead spending variance. Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Q: Hayden Co. manufactures baseball caps that sell for $40 each. Each cap uses $14 in direct materials…
A: Given that , Selling price = $ 40 p.u. Direct material = $15 p.u. Direct labor = $5 p.u. cutting…
Q: The Parts Division of Mally Company makes Part XYZ, which it sells to outside companies for $26 per…
A: Transfer price is the price used in between the various divisions in an organization.
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Variance Analysis:if actual production things eg; labor hours, labor rate, units produced are…
Q: Patrick Company produces computer desks and uses a standard cost system. Standards are 7.85 pounds…
A: Journal entries indicate the reporting of a business entity’s day-to-day operating transactions in a…
Q: Erle Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Haley Fans manufactures and distributes circulators. The standard and actual costs for the…
A: CONTROLLABLE OVERHEAD VARIANCE Controllable Overhead Variance is the difference between the…
Q: The minimum acceptable price per unit for the special order is closest to: (Round your intermediate…
A: As the question specifies the company will cut its production for 1600 units, so it has idle…
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Anglen Company manufactures and sells trophies for winners of athletic and other events. Its…
A: In taking decisions with respect to special order the company need to check Both financial and non…
Q: Auga Company Ltd Comparative Balance Sheet December 31, 2021 and 2020 Increase/(Decrease 2021 2020 )…
A: Statement of Cash Flows - Cash flow statement determines the total cash inflows and outflows…
Q: Qinto Company sells two types of products: basic and deluxe. The company provides technical support…
A: Technical support activity rate = Budgeted overhead cost/Budgeted support calls
Q: Kneller Co. manufactures and sells medals for winners of athletic and other events. Its…
A: Relevant cost to consider: Direct material cost per modal. (562,300/10000) 56.23 Direct labour…
Q: Sent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A…
A: Differential cost or extra cost are terms used to describe the price distinction between two…
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Variance…
Q: Connected Technologies, Inc. has been purchasing carrying cases for its portable tablets at a…
A: A differential analysis, also known as a cost-benefit analysis, is a decision-making tool that…
Q: Sierra Water Corporation uses a standard cost system for the production of its transistors. The…
A: Labor Efficiency Variance = (Standard labor hours allowed for actual output - Actual labor hours…
Q: Cozy, Inc., manufactures small and large blankets. It estimates $420,500 in overhead during the…
A: A predetermined overhead rate is an allocation rate for manufacturing expenses incurred indirectly…
Q: MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost…
A: Direct material budget is used to calculate the quantity and the amount of the material to be…
Q: a. Determine the standard rate per direct labor-hour. (Round your answer to 2 decimal places. Omit…
A: Formulas used to calculate - Standard rate per direct labor-hour = Basic direct labor wage rate +…
Q: The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for carnival.…
A: The objective of the question is to determine whether Carilla Ltd. should accept a special…
Q: Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing…
A: Introduction: In the manufacturing industry, setup cost is the cost of preparing equipment to…
Q: Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard…
A: Standard quantity= actual production* standard quantity per unit Direct material = 4800 * 8 =…
Q: Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard…
A: Direct material price variance = (Actual price - Standard price) Actual quantity of material…
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Variances are the differences which are determined in order to know the change between the standard…
Q: Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for carnival.…
A: Cost sheet is a financial document that provides information about total costs incurred by a…
Q: The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost…
A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost.…
Q: Winner's Circle Inc., manufactures medals for winners of athletic events and other contests. Its…
A:
Q: Assume that company makes only one product and uses a standard costing system. The standard cost…
A: Businesses utilise standard costing, a cost accounting technique, to set fixed, anticipated expenses…
Q: Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard…
A: The material/Labor variance arises when the actual cost is different from the standard or budgeted…
Q: CRAZY Co, is a major producer of beauty products. The company uses a standard cost system to help…
A: Formula : (a) Standard Fixed manufacturing overhead rate = Fixed Manufacturing overhead cost /…
Q: labor-hours. ompany's total manufacturing overhead for the year is expected to be $ Tred: ne company…
A: 1. Computation of Budgeted Total direct Labor Hours: Particulars Product H Product L Budgeted…
Q: Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard…
A: The objective of the question is to calculate the material price variance, material quantity…
Q: Bears Incorporation manufactures chainsaws that sell for $94. Each chainsaw uses $16 in direct…
A: Total manufacturing cost is the amount of cost incurred on the making of the goods. It includes the…
Q: The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for carnival.…
A: Every business gets an offer for a special order while doing their day-to-day operations. Businesses…
Q: Helix Company produces several products in its factory, including a karate robe. The company uses a…
A: A budget is a tool to estimate future cost revenue and expenses. After developing a budget, the…
Q: dent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A…
A: Solution: a. Differential cost : Cost to buy = $ 6200 * 6.90 = $ 42,780 Cost to make : Total units =…
Q: Winner's Circle Inc., manufactures medals for winners of athletic events and other contests. Its…
A: Acceptance of special order depends upon the profitability of the order. If the special order gives…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: The term variance defines the difference of actual costs and standard costs of the production. The…
Q: Kneller Co. manufactures and sells medals for winners of athletic and other events. Its…
A: Any customer order for goods or services that is not typically handled by a business is referred to…
Q: The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost…
A:
Q: The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost…
A:
Q: Kneller Co. manufactures and sells medals for winners of athletic and other events. Its…
A: A business’s main motive is to earn more profit.
Q: C Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard…
A: Variance analysis is that analysis under which differences are being evaluated between standard…
Q: The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost…
A: Fixed manufacturing overhead: The fixed overhead costs are those costs that will not change with the…
Q: Ene Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards…
A: Standard costing is a system where the production costs are based on estimates. When the actual cost…
Step by step
Solved in 3 steps
- Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 8 microns per toy at $0.32 per micron Direct labor: 1.4 hours per toy at $7.40 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials: 73,000 microns were purchased at a cost of $0.30 per micron. 27,000 of these microns were still in inventory at the end of the month. Direct labor. 6,940 direct labor-hours were worked at a cost of $55,520. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity…Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.2 hours per toy at $7.10 per hour During July, the company produced 5,200 Maze toys. The toy's production data for the month are as follows: Direct materials 71,000 microns were purchased at a cost of $0.31 per micron. 25,500 of these microns were still in inventory at the end of the month. Direct labor. 6,640 direct labor-hours were worked at a cost of $51,128. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity…Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 6 microns per toy at $0.33 per micron Direct labor: 1.3 hours per toy at $6.80 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 79,000 microns were purchased at a cost of $0.32 per micron. 41,500 of these microns were still in inventory at the end of the month. Direct labor: 7,100 direct labor-hours were worked at a cost of $52,540. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity…
- Hear Smart manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data: STANDARD COST INFORMATION QUANTITY COST Direct Materials 2 Parts $0.15 per part Direct Labor 0.02 hours 8.00 per hour Variable Manufacturing Overhead 0.02 hours 10 per hour Fixed Manufacturing Overhead ($28,500 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour) ACTUAL COST INFORMATION Direct Materials (209,000 parts @ $0.20 per part) $ 41,800 Direct Labor (1,600 hours @ $8.15 per hour) 13,040 Variable Manufacturing Overhead 9,000 Fixed Manufacturing Overhead 26,000 REQUIREMENTS Compute the cost and efficiency variances for direct materials and direct labor. For manufacturing overhead, compute the variable overhead…Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 6 microns per toy at $0.33 per micron Direct labor: 1.1 hours per toy at $6.70 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 80,000 microns were purchased at a cost of $0.31 per micron. 42,500 of these microns were still in inventory at the end of the month. Direct labor. 5,800 direct labor-hours were worked at a cost of $40,600. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity…Computer World, Inc. manufactures computer parts and keyboards. The annual production and sales of computer parts is 1,000 units, while 1,200 keyboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Computer parts require 3 direct labor hours per unit, while keyboards require 2.5 direct labor hours per unit. The total estimated overhead for the period is $114,000. The company is looking at the possibility of changing to an activity-based costing system for its products. What is the predetermined overhead allocation rate using the traditional costing system?
- Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,100 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 8.90 Direct labor 5.90 Variable manufacturing overhead 1.70 Fixed manufacturing overhead 3.70 Unit product cost $ 20.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 20% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 2 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 4 minutes on this machine and that has a contribution margin of $5.30 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the…CWB Inc. produces stuffed bunnies. The company normally produces and sells 78,000 stuffedbunnies each year at a selling price of $50 per unit. The company's unit costs at this level ofactivity are given below: Direct materials $9.30Direct labor 8.00Variable manufacturing overhead 2.00Fixed manufacturing overhead 6.00 ($468,000 total)Variable selling expenses 1.50Fixed selling expenses 6.00 ($468,000 total)Total cost per unit $32.80 The company has 500 completed stuffed bunnies on hand that have someirregularities and are therefore considered to be "seconds." Due to the irregularities, it will beimpossible to sell these units at the normal price through regular distribution channels. Whatunit cost figure is relevant for setting a minimum selling price? Briefly explain why. How to do it and what does unit cost figure mean?Innova uses 1,100 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct materials Direct labor Overhead Total Direct material Direct labor Overhead costs include variable material handling costs of $6.50, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60.00% variable costs and 40.00% fixed costs. A vendor has offered to supply the IMC2 component at a price of $290.00 per unit. (a) Material handling Prepare the incremental analysis for the decision to make or buy IMC2. Assume that no fixed costs will be eliminated if production is outsourced. (Round answers to 2 decimal places, e.g. 12.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Variable overhead Fixed overhead Purchase price Total unit cost $55.34 $ No…
- The Gidget Company produces a variety of styles of gidgets, and measures total output as the standard hours allowed for actual output. Gidget Company's manufacturing overhead budget calls for $50,000 of fixed overhead for the year plus $10 per direct labor hour. Last year the Gidget Company produced 11,000 standard hours of output. Actual manufacturing overhead for the year amounted to $53,000 of fixed overhead and the Gidget Company used 8,000 direct labor hours. The Gidget Company uses standard direct labor hours allowed as a basis for allocating overhead and uses 10,000 direct labor hours as its denominator volume. Calculate the production volume variance:Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?The following details taken from the books of DiDi Sdn Bhd for the year ending 31 December 2020. DiDi Sdn Bhd Statement Profit or Loss for the year ending 31 December 2020 (extract) RM RM Gross profit 44,700 Add : Discount received 410 Profit on sale of van 620 1,030 45,730 Less: Expenses Motor expenses 1,940 Wages 17,200 General expenses 830 Bad debts 520 Increase in allowance for doubtful debts 200 Depreciation : van 1,800 22,490 23,240 Statement of Financial Position as at 31 December 2019 2020 RM RM RM RM Non-current Assets Vans at cost 15,400 8,200 less Depreciation (5,300) (3,100) 10,100 5,100 Current Assets Inventory 18,600 24,000 Trade accounts receivables less provision*…