PART B: DIRECT MATERIALS AND DIRECT LABOR VARIANCES At the beginning of June, Faiz Mainan Sdn. Bhd. budgeted 5,000 toys action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials RM50,000 Direct labor RM36.000 Total RM86.000 The standard materials price is RM4.00 per pound. The standard direct labor rate is RM18.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials RM49,600 Actual direct labor RM34,020 Total RM83.620 There were no direct materials price or direct labor rate variance for June. In addition, assume no charges in the direct materials inventory balances in June. Faiz Mainan Sdn. Bhd. actually produced 4,850 units of toys action figures during June. REQUIRED: (a) Determine the direct materials quantity variance. (b) Determine the direct labor time variance.

PART B: DIRECT MATERIALS AND DIRECT LABOR VARIANCES At the beginning of June, Faiz Mainan Sdn. Bhd. budgeted 5,000 toys action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials RM50,000 Direct labor RM36.000 Total RM86.000 The standard materials price is RM4.00 per pound. The standard direct labor rate is RM18.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials RM49,600 Actual direct labor RM34,020 Total RM83.620 There were no direct materials price or direct labor rate variance for June. In addition, assume no charges in the direct materials inventory balances in June. Faiz Mainan Sdn. Bhd. actually produced 4,850 units of toys action figures during June. REQUIRED: (a) Determine the direct materials quantity variance. (b) Determine the direct labor time variance.

Name: BKAL1013 Business AccountingPART B: DIRECT MATERIALS AND DIRECT LABOR
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Description: BKAL1013 Business AccountingPART B: DIRECT MATERIALS AND DIRECT LABOR VARIANCESAt the beginning of June, Faiz Mainan Sdn. Bhd. budgeted 5,000 toys action figures to bemanufactured in June at standard direct materials and direct labor costs as follow

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...

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Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
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 6 pounds @ $8 per pound 3 DLH @ $16 per DLH 3 DLH @ $13 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 43,700 pounds @ $8.20 per pound 21,400 hours @ $16.60 per hour $ 287,500 7,200 units
Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH @ $16 per DLH 3 DLH @ $12 per DLH Direct materials Direct labor Overhead Units manufactured (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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Direct materials Direct labor Overhead Total Required 3 Prepare the standard cost card showing standard cost per unit. $ Required 4 Actual Results 46,100 pounds @ $8.20 per pound 22,500 hours @ $16.50 per hour $ 278,600 7,600 units < Required 1 Required 2
A manufactured product has the following Information for August. Direct materials Direct labor Overhead Standard Quantity and Cost 2 pounds per unit @ ss.ee per pound e.5 hour per unit @ $60 per DLH $78 per DLH Units manufactured Total manufacturing costs (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for production In August. (3) Compute the total cost variance for August. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the standard cost card showing standard cost per unit. Note: Round your final answers to 2 decimal places. Inputs Direct materials Direct labor Overhead Standard quantity or hours pounds x DLH x DLH x Required 1 Required 2 Required 3 Standard price or rate Standard cost per unit Compute total budgeted cost for production in August. Total budgeted cost Required 1 Required 2 Required 3 Actual Results 14,200 units $ 1,203,400 Compute the total cost variance…
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Direct materials Direct labor Variable overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Standard Price or Rate $ 2.00 per ounce $10.00 per hour. $4.00 per hour 5.9 ounces 9.8 hours 9.8 hours The materials price variance for June is: 3,700 units 3,300 units 20,900 ances 22,000 ounces 5,500 hours $ 42,400 $ 13,700 $ 3,850 Standard Cost Per Unit $ 11.80 $ 8.00 $.3.20 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
A company uses a standard cost system using direct labor-hours (DLHS) to apply muinufactoring overficad Cost datu reled fo fed manufacturing overhead (FMOH) for a recent period was: Actual FMOH cost incurred $ 840,000 FMOH budget variance 42,000 favorable Activity data for the month was: Denominator activity level in DLHS Standard hours allowed for actual output 21,000 19,600 22,050 DLHS DLHS DLHS Actual number of DLHS incurred The amount of total fixed manufacturing overhead cost applied to production last month was closest to $ 744,800 $ 823,200 $ 784,000 S 837,900 E None of the above is correct. A. B. C. D.
Toothpaste Philippines computed a predetermined overhead rate based on the following information: Monthly budgeted overhead P1,200,000 + (160% of direct labor cost) Its monthly budgeted direct labor cost is P2,000,000 The cost doata for the month of October 2021 follows: Work-in- Finished Total Jobs Sold Goods, End Materials P1,300,000.00 P1,020,000.00 P 160,000.00 120,000.00 Direct labor 2,020,000.00 P1,640,000.00 P 200,000.00 180,000.00 process, end Actual overhead for the month is P4,200,000. Compute for the overhead varianoe. (Note: Precede the amount with a negative sign (-) if the variance is underapplied.)
Tharaldson Corporation makes a product with the following standard costs: Standard Standard Quantity or Hours Standard Price or Cost Per Rate Unit Direct materials $ 4.00 per ounce $ 11.00 per hour $ 4.00 per hour 7.1 ounces $28.40 Direct labor $ 3.30 $ 1.20 0.3 hours Variable overhead e.3 hours The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production 2,500 units 3,000 units 21,500 ounces Purchases of raw materials 22,000 ounces 560 hours Actual direct labor-hours Actual cost of raw materials purchases $ 45,100 $ 12,500 $ 3,250 Actual direct labor cost Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchase The labor efficiency varlance for June is:
Nevada Corporation makes a product with the following standard costs: Standard Price or Rate Standard Quantity or Hours 6.4 ounces $ 0.4 hours S 0.4 hours $ 3.00 per ounce 13.00 per hour 5.00 per hour The company reported the following results concerning this product in March. Direct materials Direct labor Variable overhead. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate $ S $ O $3,277 F O $3,390 U O $3,390 F O $3,277 U Standard Cost Per Unit S S S 4,800 units 4,900 units 30,230 ounces 1,910 hours 32,600 ounces 2.90 per ounce 12.40 per hour 4.90 per hour 19.20 5.20 2.00 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 materials quantity variance for March is:
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.5 ounces 8.2 hours 8.2 hours Direct materials Direct labor Variable overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Standard Price or Rate $ 2.00 per ounce $ 23.00 per hour $ 6.00 per hour The materials quantity variance for June is: 2,700 units 2,800 units 19,380 ounces 21,400 ounces 500 hours $ 40,660 $ 12,050 $ 3,100 Standard Cost Per Unit $ 13.00 $ 4.60 $ 1.20 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Nevada Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate 3.00 per ounce 6.4 ounces 0.4 hours 0.4 hours $ $ 13.00 per hour S 5.00 per hour The company reported the following results concerning this product in March. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Direct materials Direct labor Variable overhead Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate O $3,136 F O $3,260 F S S S O $3,136 U O $3,260 U Standard Cost Per Unit S S S 4,800 units 4,900 units 30,230 ounces 1,910 hours. 32,600 ounces 2.90 per ounce 12.40 per hour 4.90 per hour 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 materials price variance for March is: 19.20 5.20 2.00
Majer Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 6.5 ounces 0.5 hours. 0.5 hours N The company reported the following results concerning this product in February. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate. Standard Price or Rate $ 4.00 per ounce. $ 16.00 per hour. $ 4.00 per hour. Multiple Choice 5,500 units 8,300 units 30,600 ounces 1,960 hours 33,000 ounces $72.90 per ounce. $ 82.40 per hour $ 3.20 per hour. Standard Cost Per Unit $26.00 $ 8.00 $ 2.00 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 variable overhead rate variance for February is: