None E9-15 (Algo) Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4]Amber Company produces iron table and chair sets. During October, Amber's costs were as follows:Actual purchase price$ 2.20 per poundtrencesActual direct labor rateStandard purchase priceStandard quantity for sets producedStandard direct labor hours allowedActual quantity purchased in OctoberActual direct labor hoursActual quantity used in OctoberDirect labor rate varianceRequired:1. Calculate the total cost of purchases for October.$ 7.40 per hour$ 2.00 per pound960,000 pounds10,0001,105,000 pounds9,000990,000 pounds$5,400 F2. Compute the direct materials price variance based on the actual quantity purchased.3. Calculate the direct materials quantity variance based on the actual quantity used.4. Compute the standard direct labor rate for October.5. Compute the direct labor efficiency variance for October.Complete this question by entering your answers in the tabs below.Req 1Req 2 and 3Req 4Req 5Calculate the total cost of purchases for October.Total Purchases

Step 1: 1) Total Cost of materials purchases for October = Actual Purchase price x Actual Quantity…

Answered: E9-15 (Algo) Determining Actual Costs,…

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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15. Reems Corporation uses a standard cost system. Direct labor information for Product E for the month of November is as follows: Standard labor price, P6.10 per hour Actual rate paid, P6.00 per hour Standard quantity allowed for actual production, 1,500 hours Labor efficiency variance, P600 unfavorable What is the actual hours worked? Group of answer choices 1,402 1,400 1,600 1,598
Standard Costing and Variance Analysis Standard Price or Rate P6.00 per meter Direct Materials Direct Labor Variable Factory Overhead P3.00 direct labor hour per Factory overhead is applied to production based on direct labor hours. During the month of February, 5,000 units were produced and sold to customers. Th following are the selected production data for the month: Materials Direct Variable used Labor FOH P52,500 Standard Cost allowed Actual cost incurred P84,000 P75,000 P6,000 U P21,000 P18,000 ? Materials Quantity variance Actual direct labor hours 7,500 hours Standard FOH rate per direct labor hour Standard Price per meter P3.00/hr. P6.00 /m. The difference between the standard and actual cost per unit produced is P0.15 favorable. Required: Compute the following: 1. The standard cost per unit of product. 2. The actual cost per unit of product. Standard Quantity per unit. 4. Material Price variance. 3. 5. 6. Labor Rate variance. Standard direct labor rate per hour. 7. Labor…
19. Oreeo Company uses a standard cost system. Information for raw materials for product G for the month of November is as follows: Standard unit price, P1.60 Actual purchase price per unit, P1.55 Actual quantity purchased, 2,000 units Standard quantity allowed for actual production, 1,800 units What is the materials purchase price variance? Group of answer choices P90 favorable P90 unfavorable P100 unfavorable P100 favorable
Oreeo Company uses a standard cost system. Information for raw materials for product G for the month of November is as follows: Standard unit price, P1.60 Actual purchase price per unit, P1.55 Actual quantity purchased, 2,000 units Standard quantity allowed for actual production, 1,800 units What is the materials purchase price variance? P100 favorable P100 unfavorable P90 favorable P90 unfavorable
Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 5 pounds @ $7 per pound 3 DLH @ $15 per DLH 3 DLH @ $12 per DLH (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June. Actual Results 42,400 pounds @ $7.20 per pound 25,000 hours @ $15.60 per hour $ 307,700 8,400 units
Tub Co. uses a standard cost system. The following information pertains to direct labor for product B for the month of October: Standard hours allowed for actual production 2,000 Actual rate paid per hour P 8.40 Standard rate per hour P 8.00 Labor efficiency variance P 1,600UF What were the actual hours worked? 1,810 2,200 2,190 1,800
Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate $ 1.00 per gram $ 11.00 per hour $ 2.00 per hour Direct materials 3.5 grams Direct labor 0.7 hours Variable overhead 0.7 hours The company reported the following results concerning this product in July. Actual output 3,000 units Raw materials used in production 11,370 grams Actual direct labor-hours 1,910 hours Purchases of raw materials 12,100 grams Actual price of raw materials purchased $ 1.20 per gram $ 11.40 per hour $ 2.10 per hour Actual direct labor rate Actual variable overhead rate The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for July is:
Vermont Inc. has provided the following data concerning one of the products in its standard cost system. Standard Quantity or Hours per Unit of Output 0.20 hours Inputs Direct labor The company has reported the following actual results for the product for May: Actual output Actual direct labor-hours Actual direct labor rate. The labor rate variance for the month is closest to: $2,576 U O $2,816 U O $2,816 F Standard Price or Rate $21.70 per hour O $2,576 F 8,800 units 1,610 hours S 23.30 per hour
Actual purchase price Actual direct labor rate Standard purchase price Standard quantity for sets produced Standard direct labor houre allowed Actual quantity purchaned in October Actual direet labor hours Actual quantity used in October Direct labor rate variance $ 3.00 per lb. $8.20 per hour $ 2.80 per lb. 1,040,000 lba. 21,000 1,295,000 lbs. 17,000 1,070,000 lbs. $6, 120 F Required: 1. Calculate the total cost of purchases for October. 2. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity variance based on quantity used. 4. Compute the standard direct labor rate for October. 5. Compute the direct labor efficlency variance for October. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Req 4 Req 5 2. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity varlance based on quantity used. (Indicate the effect of each variance by…
8.Hithlum Inc. uses a standard cost system. Overhead cost information for product SK for the month of May is as follows: Total overhead cost incurred P12,600 Fixed overhead budgeted P 3,300 Total standard overhead rate per direct labor hour P 4.00 Variable overhead rate per direct labor hours P 3.00 Standard hours allowed for actual production 3,500What is the overall overhead variance?
Required information Skip to question [The following information applies to the questions displayed below.] Eagle Company uses a standard cost system that has provided the following data: Units of output manufactured: 85 Direct labor: Standard hours allowed: 2 hours per unit of product Standard wage rate: $17.00 per hour Actual direct labor: 190 hours, total cost of $3,610 The direct labor rate variance for the period was: Multiple Choice $720 favorable. $380 favorable. $380 unfavorable. $720 unfavorable.
The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor cost Direct labor efficiency variance Actual variable overhead Required: Compute the direct labor and variable overhead price and efficiency variances. $ 34 3,600 13,925 $ 510,200 $ 17,670 F $ 473,450 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance

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