Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. The standard labor to count and assemble each packet is 0.15 hours at a cost of $17.00 per hour. Johnson Co. budgeted to make 65,000 seed packets but due to high demand, they ended up making 73,000 packets. They paid $316,008 for 18,480 hours of packet assembly time. What is their labor efficiency variance for this period? Enter a favorable variance is a positive number and an unfavorable variance as a negative number. Enter as a whole number, no commas and no dollar signs. Your Answer: Answer

Hot Dog Express (HDE) is currently buying their buns from Buns-For-All for $. 50 a dozen. Each month they purchase 14,000 dozen. HDE is considering making their own buns for cost cutting and quality reasons. They have determined the following costs: materials, $. 20; direct labor, $. 10; variable factory overhead cost, $. 04; and total (existing) fixed costs, $3,000 per month. From an accounting point of view only, should HDE make or buy their buns?

How would i find the variable cost per unit?

Greener Garden Group produces and sells 21,200 litres of organic lawn and garden fertilizer. The fertilizer, GoGrow, is a favourite among landscaping companies in southern Manitoba. The selling price of GoGrow is $20 per litre, variable costs are $13 per litre, fixed manufacturing overhead costs in the plant total $121,900 per month, and the fixed selling costs total $164,300 per month. Recent supply chain problems have made it difficult for the Greener Garden Group to get the quantity of chemicals needed to produce the fertilizer. Because of this, sales have dropped to 6,360 litres per month and will most likely stay at this level until the supply of chemicals is back to normal. Management expects that the supply chain issues will ease up soon with business returning to normal in two months. However, the CEO of Greener Garden Group thinks the company should fully shut down operations for two months until the supply chain issues are resolved. If the Greener Garden Group does close the…

Greener Garden Group produces and sells 21,200 litres of organic lawn and garden fertilizer. The fertilizer, GoGrow, is a favourite among landscaping companies in southern Manitoba. The selling price of GoGrow is $16 per litre, variable costs are $9 per litre, fixed manufacturing overhead costs in the plant total $121,900 per month, and the fixed selling costs total $164,300 per month. Recent supply chain problems have made it difficult for the Greener Garden Group to get the quantity of chemicals needed to produce the fertilizer. Because of this, sales have dropped to 6,360 litres per month and will most likely stay at this level until the supply of chemicals is back to normal. Management expects that the supply chain issues will ease up soon with business returning to normal in two months. However, the CEO of Greener Garden Group thinks the company should fully shut down operations for two months until the supply chain issues are resolved. If the Greener Garden Group does close the…

The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $32 per unit. Variable costs for the casing are $19 per unit, and fixed cost is $4 per unit. Cotwold executives would like for the Molding Division to transfer 15,000 units to the Assembly Division at a price of $24 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request. Required: Should the Molding Division accept the $24 transfer price proposed by management? Calculate the effect on the Molding Division’s net income if it accepts the $24 transfer price

SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce lock show that manufacturing costs total $23.25 per lock. An analysis of this amount indicates that $13.40 of the total cost has a variable cost behavior pattern, and the remainder is an allocation of fixed manufacturing overhead. The normal selling price of this model is $31.00 per lock. A chain store has offered to buy 12,000 ZForce locks from SureLock at a price of $16.25 each to sell in a market that would not compete with SureLock's regular business. SureLock has manufacturing capacity available and could make these locks without incurring additional fixed manufacturing overhead.Required: Calculate the effect on SureLock's operating income of accepting the order from the chain store. If SureLock's costs had not been classified by cost behavior pattern, is it likely that a correct special order analysis would have been made?

Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 30 minutes $ 6.20 $ 3.10 During August, 10,370 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $63,257 for the month.   What is the labor rate variance and the labor efficiency variance? The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $55,998 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.

Imagine that the standard labour time to prepare a sandwich is 2.9 minutes. Food assemblers are paid an hourly rate of $18. Company contributions to employment insurance, etc., add another $1.2 to the wage costs. The actual labour cost per hour was $10 (including the company contributions to employment insurance, etc.) and it took 3.7 minutes to prepare one meal. 7305 meals were prepared last week. What is the total labour efficiency variance?

When auto manufacturer BMW purchased the Rolls-Royce brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid $27 per hour, worked a total of 7200 hours, and produced 2100 cars. BMW budgeted for a standard labor rate of $32 per hour and 3.50 direct labor hours per car. What is the direct labor rate variance for the Rolls-Royce division?