Sunland Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. Materials price variance $1,230 U Labor quantity variance $770 U Materials quantity variance 780 F Overhead variance 700 U Labor price variance 540 U In addition, 8,650 units of product were sold at $8 per unit. Each unit sold had a standard cost of $3. Selling and administrative expenses were $7,040 for the month. Prepare an income statement for management for the month ended January 31, 2025. SUNLAND COMPANY Income Statement

Sunland Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. Materials price variance $1,230 U Labor quantity variance $770 U Materials quantity variance 780 F Overhead variance 700 U Labor price variance 540 U In addition, 8,650 units of product were sold at $8 per unit. Each unit sold had a standard cost of $3. Selling and administrative expenses were $7,040 for the month. Prepare an income statement for management for the month ended January 31, 2025. SUNLAND COMPANY Income Statement

Name: Sunland Company uses a standard cost accounting system. During Januar
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Description: Sunland Company uses a standard cost accounting system. During January, the company reported the following manufacturingvariances.Materials price variance$1,230 ULabor quantity variance$770 UMaterials quantity variance780 FOverhead variance700 ULabo

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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The following data were taken from the records of Griggs Company for December: Cost Category Dollar Amount Administrative expenses $110,000 Cost of goods sold at standard 540,000 Direct materials price variance (unfavorable) 1,650 Direct materials quantity variance (favorable) (540) Direct labor rate variance (favorable) (1,120) Direct labor time variance (unfavorable) 420 Variable factory overhead controllable variance (favorable) (210) Fixed factory overhead volume variance (unfavorable) 3,080 Interest expense 2,070 Sales 869,000 Selling expenses 125,000 Prepare an income statement for presentation to management.
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Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $15.10 per hour. During August, Delmar Incorporated paid its workers $260,832 for 17,160 hours. Delmar Incorporated produced 8,780 widgets during August. Required: Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Calculate the direct labor efficiency variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Calculate the direct labor spending variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).
ABC Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): ABC Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. ABC Industries paid $39,370 for the 15,500 pounds of material. What was the direct materials price variance for July? What was the direct materials quantity variance for July? What is the total direct materials cost variance? Standard Quantity x Standard price = standard cost direct materials 5 pounds $2.60 per pound $18.00 Direct labor 1.25 hours $12.00 per hour $15.00 total prime cost $33.00
Lewis Company's standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $12.50 per hour. During August, 42,600 hours of labor are incurred at a cost of $12.65 per hour to produce 13,200 units of Product DD. (a) Compute the total labor variance. Total labor variance (b) Compute the labor price and quantity variances. Labor price variance Labor quantity variance (c) $ Labor price variance $ Compute the labor price and quantity variances, assuming the standard is 3.50 hours of direct labor at $12.85 per hour. $ > Labor quantity variance $ <
The following data were taken from the records of Griggs Company for December: Administrative expenses $100,800 Cost of goods sold (at standard) 550,000 Direct materials price variance—unfavorable 1,680 Direct materials quantity variance—favorable (560) Direct labor rate variance—favorable (1,120) Direct labor time variance—unfavorable 490 Variable factory overhead controllable variance—favorable (210) Fixed factory overhead volume variance—unfavorable 3,080 Interest expense 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry leave it blank. Griggs Company Income Statement For the Month Ended December 31 $ $ Unfavorable Favorable Variances from standard cost: $ $…
The standard cost of product 2525 includes 4.10 hours of direct labour at $14.40 per hour. The predetermined overhead rate is $21.60 per direct labour hour. During July, the company incurred 11,170 hours of direct labour at an average rate of $14.80 per hour and $237,012 of manufacturing overhead costs. It produced 2,700 units. (a) Calculate the total, price, and quantity variances for labour. (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answers to O decimal places, e.g. 125.) Total labour variance Labour price variance Labour quantity variance eTextbook and Media Save for Later tA $ $ +A ta $ Favourable Unfavourable Neither favourable nor unfavourable Attempts: 0 of 3 used Submit Answer
The following information was gathered for Larsen Corp. for the year ending 20xx. Budgeted direct labor hours 15,500 Actual direct labor hours 16,200 Budgeted factory overhead cost $73,625 Actual factory overhead cost $74,990 -Assume direct labor hours is the cost driver Required: What is the amount of over/underapplied overhead ? Is the variance over or under estimated ?
Chulak Company uses a standard costing system. The following data are available for the month: Actual quantity of direct materials purchased 25,000 pounds Standard price of direct materials $2 per pound Material price variance $2,500 unfavorable The actual price per pound of direct materials purchased during the month is
Sara metal frames over the period of years using standard costing system in its unit and has April month manufacturing variances as follows: Overhead variance 710 U Labor quantity variance U Labor price variance U Materials quantity variance F Materials price variance 1,430 U In addition, 8,500 units of product were sold at 8 per unit. Each unit sold had a standard cost of 4.Selling and administrative expenses were 8,290 for the month. Prepare an income statement for management for the month ended January 31, 2021. 930 510 840
In October, Pine Company reports 21,000 actual direct labor hours, and it incurs $118,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,600 hours. The predetermined overhead rate is $6.00 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4 variable per direct labor hour and $50,000 fixed. Compute the overhead controllable variance. Overhead Controllable Variance $ 5600 Favorable 23
The following materials standards have been established for a particular product: Standard quantity per unit of output Standard price 4.9 pounds $13.70 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output 5,550 pounds $63,380 5,050 pounds 750 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month? Multiple Choice $5,710 U $15,702 U $18,838 U $6,850 U