b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?O YesO No2. For direct labor:a. Compute the rate and efficiency variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e,zero variance).)Labor rate varianceLabor efficiency varianceb. In the past, the 25 technicians employed in the production of Fludex consisted of 5 senior technicians and 20 assistants. During November, the company experimented with fewer senior technicians and moreassistants in order to save costs. Would you recommend that the new labor mix be continued?O YesO No3. Compute the variable overhead rate and efficiency variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None"for no effect (i.e, zero variance).)|Variable overhead rate varianceVariable overhead efficiency variance Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for oneunit of Fludex, as follows:Standard Priceor Rate$25.00 per ounceStandardStandard Quantity2.20 ouncesCost$ 55.00Direct materials$15.00 per hour$ 3.00 per hourDirect labor0.50 hours7.50Variable manufacturing overhead0.50 hours1.50$ 64.00During November, the following activity was recorded relative to production of Fludex:a. Materials purchased, 12,000 ounces at a cost of $282,000.b. There was no beginning inventory of materials; however, at the end of the month, 2,750 ounces of material remained in ending inventory.c. The company employs 25 lab technicians to work on the production of Fludex. During November, they worked an average of 110 hours at an average rate of $11.50 per hour.d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $2,400.e. During November, 4,100 good units of Fludex were produced .Required:1. For direct materials:a. Compute the price and quantity variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e,zero variance).)Materials price varianceMaterials quantity variance

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Description: b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?O YesO No2. For direct labor:a. Compute the rate and efficiency variances. (Input

Variance Analysis: Variance analysis is the study of variations between actual and projected or…

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Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard unit of Fludex, as follows: Standard Quantity 2.20 ounces Standard Price or Rate $25.00 per ounce Standard Cost $ 55.00 Direct materials Direct labor 0.50 hours $15.00 per hour 7.50 Variable manufacturing overhead 0.50 hours $ 3.00 per hour 1.50 $ 64.00 During November, the following activity was recorded relative to production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $282,000. b. There was no beginning inventory of materials; however, at the end of the month, 2,750 ounces of material remained in ending inventory. c. The company employs 25 lab technicians to work on the production of Fludex. During November, they worked an average of 110 hours at an average rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $2,400. e. During November, 4,100 good units of Fludex were produced . Required:

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard unit of Fludex, as follows: Standard Quantity 2.20 ounces Standard Price or Rate $25.00 per ounce Standard Cost $ 55.00 Direct materials Direct labor 0.50 hours $15.00 per hour 7.50 Variable manufacturing overhead 0.50 hours $ 3.00 per hour 1.50 $ 64.00 During November, the following activity was recorded relative to production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $282,000. b. There was no beginning inventory of materials; however, at the end of the month, 2,750 ounces of material remained in ending inventory. c. The company employs 25 lab technicians to work on the production of Fludex. During November, they worked an average of 110 hours at an average rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $2,400. e. During November, 4,100 good units of Fludex were produced . Required:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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West Partners manufactures metal fixtures. Each fitting requires both steel and an alloy that can withstand extreme temperatures. The following data apply to the production of the fittings for year 1: Direct materials per unit 2.0 pounds of steel at $0.80 per pound 1.2 pounds of alloy at $16.00 per pound Direct labor per unit 0.84 hours at $30 per hour Overhead per unit Indirect materials Indirect labor Utilities Machine depreciation Other overhead Total overhead per unit The machine depreciation and other overhead costs are fixed and are based on production of 100,000 units annually. Plant capacity is 120,000 units annually. All other overhead costs are variable. $ 0.40 0.80 0.60 1.10 0.60 $ 3.50 The following are forecast for year 2. A wage increase of 6 percent for both direct and Indirect labor, which was negotiated recently. will go into effect. Steel prices are expected to decrease by 5 percent while alloy prices are expected to Increase by 10 percent. Machine depreciation costs…
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantityor Hours Standard Priceor Rate Standard Cost Direct materials 2.20 ounces $ 16.00 per ounce $ 35.20 Direct labor 0.80 hours $ 12.00 per hour 9.60 Variable manufacturing overhead 0.80 hours $ 2.50 per hour 2.00 Total standard cost per unit $ 46.80 During November, the following activity was recorded related to the production of Fludex: Materials purchased, 11,000 ounces at a cost of $160,600. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory. The company employs 23 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hour.…
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Haggstrom, Inc., manufactures steel fittings. Each fitting requires both steel and an alloy that allows the fitting to be used under extreme conditions. The following data apply to the production of the fittings. Direct materials per unit 3 pounds of steel at $0.55 per pound 0.5 pounds of alloy at $1.90 per pound Direct labor per unit 0.02 hours at $30 per hour Overhead per unit Indirect materials Indirect labor Utilities Plant and equipment depreciation Miscellaneous $0.60 0.75 0.55 0.90 0.70 Total overhead per unit $3.50 The plant and equipment depreciation and miscellaneous costs are fixed and are based on production of 250,000 units annually. All other costs are variable. Plant capacity is 300,000 units annually. All other overhead costs are variable. The following are forecast for year 2. Contract negotiations with the union are expected to lead to an increase in hourly direct labor costs of 4 percent, mostly in the form of additional benefits. Commodity prices, including steel,…
Lawn Products produces two products (X and Y) and a by-product (Z) from a joint process using a raw material (Alpha). The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 23,000 pounds of Alpha at a total cost of $99,000. The output of the process consisted of 28,800 units of product X, 35,200 units of product Y, and 7,100 units of by-product Z. By-product Z can be sold for $12,000. This is considered to be its net realizable value, which is deducted from the processing costs of the main products. Required: What amount of joint costs should be assigned to each of product X and product Y? Product X Product Y Joint Costs
Becton Labs, Inc., produces various chemical compounds for Industrial use. One compound, called Fludex, Is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: standard Quantity or Hours standard Price Standard or Rate $18.00 per ounce $14.00 per hour Cost Direct materials 2.40 ounces $ 43.20 Direct labor 0.70 hours 9.80 variable manufacturing overhead 0.70 hours $ 3.00 per hour 2.10 Total standard cost per unit $ 55.10 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $198,000. b. There was no beginning inventory of materials; however, at the end of the month, 3,200 ounces of materilal remalned In ending Inventory. c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $12.00 per hour. d. Varlable manufacturing…
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Northern Company processes 100 gallons of raw materials into 75 gallons of product GS-50 and 25 gallons of GS-80. GS-50 is further processed into 50 gallons of product GS-505 at a cost of $7,250, and GS-80 is processed into 50 gallons of product GS-805 at a cost of $5,750. The production process starts at point 1. A total of $20,000 in joint manufacturing costs are incurred in reaching point 2. Point 2 is the split-off point of the process that manufactures GS-50 and GS-80. At this point, GS-50 can be sold for $725 a gallon, and GS-80 can be sold for $145 a gallon. The process is completed at point 3-products GS-505 and GS-805 have a sales price of $585 a gallon and $225 a gallon, respectively. Required: Allocate the joint product costs and then compute the cost per unit using each of the following methods: (1) physical measure, (2) sales value at split-off, and (3) net realizable value. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)…