Hanshaben Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. Thestandard 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 making73,000 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 positivenumber and an unfavorable variance as a negative number.Enter as a whole number, no commas and no dollar signs.Your Answer:Answer

Labor efficiency variance measures how well the manufacturing workers use their time and skills to…

Answered: Johnson Co. makes organic non-GMO…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7EA: Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.75...

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Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. The standard labor to count and assemble each packet is 0.06 hours at a cost of $16.70 per hour. Johnson Co. budgeted to make 65,000 seed packets but due to high demand, they ended up making 71,000 packets. They paid $316,008 for 18,480 hours of packet assembly time. What is their labor cost 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.
Best Birdies produces ornate birdcages. The company's average cost per unit is $18 when it produces 2,200 birdcages. If $5,800 of the total costs are fixed, what is the variable cost of producing each birdcage?
Berghof Foods manufactures various gourmet ethnic food products. Production of its specialty hummus requires a half pound of material per container, which costs $12 per pound and requires 45 minutes (i.e., 0:75 hour) of direct labor. Direct labor costs $20 per hour; the variable overhead rate is $10 per direct labor hour; and the fixed overhead rate is $6 per direct labor hour. What is the standard cost for each container of specialty hummus produced? Select one: O O O O O a. $21.00 per container b. $28.50 per container c. $33.00 per container d. $48.00 per container e. None of the above
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?
Daily Kneads, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $20,000 for 20,000 pounds of the product. The costs per pound to make this product include: Cost per Pound $0.30 Direct Labor Direct Materials $0.60 $0.70 Allocated Unavoidable Overhead If Daily Kneads outsources, what is the savings (or loss) per pound for the company as a whole? If the amount is a loss include a negative sign (not parentheses) in your answer. "_"
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.
Lay's Potato Chips is examining their Wavy Lays chip line. They began the year expecting to produce 500,000 bags of potato chips. They projected that each bag would require 3 pounds of potatos and 1.5 hours of labor to manufacture. They planned to pay $2 per pound for potatos and $20 per hour for labor. They also budgeted $900,000 for variable manufacturing overhead costs and $ 450,000 of fixed manufacturing overhead costs, with both variable and fixed manufacturing overhead costs being allocated based on direct labor hours. At the end of the year, Lay's finds that they produced 880,000 bags of potato chips, using 3.25 pounds of potatos per bag and 1.25 hours of labor per bag. Due to significant inflation, the purchasing department made a deal with the supplier and purchased 3,000,000 pounds of potatos for a per-pound price of $3.25. They also spent $22 per hour for direct labor. The Wavy Lays chip line spent $843,000 on variable manufacturing overhead costs and $562,000 on fixed…

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