The Yates Corporation manufactures lamps. It has setup the following standards per finished unit for directAssume that there was no beginning inventoryof either direct materials or finished units. DuringRequirement 1. Compute the January 2020 price and efficiency variances of direct materials and directmanufacturing labor.Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.)Direct materials (purchases)Direct materials (usage)Direct manufacturing laborActual inputBudgeted price=Cost==|| || ||Question Viewer

Let's proceed with each step:Step 1: Calculate the actual input at the budgeted price.Actual input =…

Answered: The Yates Corporation manufactures…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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Data table Standards: 3 yards of cloth per unit at $1.10 per yard 2 direct labor hours per unit at $19.50 per hour Overhead allocated at $4.00 per direct labor hour Actual: 2,800 yards of cloth were purchased at $1.15 per yard Employees worked 1,200 hours and were paid $19.00 per hour Actual variable overhead was $4,000 Actual fixed overhead was $2,700 Print Done - X Data table Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance Print Done - X $140 U 220 F 600 F 15,600 F 1,100 U 1,100 F 800 U 2,100 F Requirements Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all…
speedt Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020are as follows the selling price per vehicle is $30,000.The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. a) Prepare April and May 2020 income statements for Speedy Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portio
The Alamo Company reports the actual data for 2023 and 2022. There are no price, efficiency or rate variances. Any production volume varlances are written off to Cost of Goods Sold in the year it occurs. Unit Data Beginning Inventory Production Budgeted Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs Selling price per unit $ ss $ $ ss $ $ 2021 10 900 1,200 880 350 $ 40 $ 69,600 $ 8,400 $ 800 $ 2022 30 1,000 1,200 950 355 42 69,600 8,400 800 Required a. Prepare a statement of comprehensive income for each year using variable costing and absorption costing. b. Reconcile the difference between the operating incomes for each year; ensure to report the number of units for beginning and ending inventory for Fixed Manufacturing costs.
Quality Company uses a standard cost system and reports the following information for 2024: 1(Click the icon to view the information.) Quality Company reported the following variances: 2(Click the icon to view the variances.) Quality produced 1,000 units of finished product in 2024. Read the requirements3. Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (1) (2) (3) (4) (5) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (6) (7) (8)…
Accelerate Motors assembles and sells motor vehicles and uses standard costing Actual data relating to April and May 2020 are as follows: (Click the icon to view the data.) The selling price per vehicle is $28,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 units. There are no price, efficiency, or spending variances. Any production-volume variance is writ off to cost of goods sold in the month in which it occurs. Read the requirements. Requirement 1. Prepare April and May 2020 income statements for Accelerate Motors unde(a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Accelerate Motors under variable costing Complete the top half of the income statement for each month first, then complete the bottom portion (Complete all input fields. Enter a "0" for any zero balance accounts.) April 2020 May 2020 Data table 1 2 3 4 5 Sales 6 Variable costs: 7 A Unit data: Beginning…
Hayesville Company uses a standard cost system and reports the following information for 2024: (Click the icon to view the information.) Requirements Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single com Date Accounts and Explanation Print G Debit Done Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold). Record the journal entries for the transfer to Finished Goods Inventory and Cost of Goods Sold (omit the journal entry for Sales Revenue). Record the journal entry to adjust the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Credit Hayesville Company reported the following variances:…
Good Deal, Inc. uses a standard cost system and provides the following information. Good Deal allocates manufacturing overhead to production based on standard direct labor hours. Good Deal reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $2400; actual fixed overhead, $3,400; actual direct labor hours, 1,200. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Show all computations. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U).(Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Data table has the following Static budget variable…
Riza Company uses a standard cost system. Information for raw materials for Product DEF for the month of August follows:Standard price per pound of raw materials $1.60Actual purchase price per pound of raw materials $1.55Actual quantity of raw materials purchased 2,000 poundsActual quantity of raw materials used 1,900 poundsStandard quantity allowed for actual production 1,800 poundsQuestion: What is the materials purchase price variance? (label whether favorable or unfavorable; no dollar sign and comma)
ComplexChem, Inc., produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August 2020: LOADING... (Click the icon to view the data.) Requirement Fill in the blanks. Use F for favorable and U for unfavorable: LOADING... (Click the icon to view the table.) (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) Variable (1) Spending variance (2) Efficiency variance (3) Production-volume variance (4) Flexible-budget variance (5) Underallocated (overallocated) manufacturing overhead Fixed Choose from any list or enter any number in the input fields and then continue to the next question. Data Table…
< Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, actual variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print The fixed overhead cost variance is The fixed overhead volume variance is $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done because the total fixed overhead cost was because…
Excell Electronics Sdn Bhd (EESB) manufacture an electronic appliances. The estimatedtotal production costs of the product is RM500,000 for production of 2000 units of itsproducts. In 2019, the production report show that a total of RM580,000 was spent toproduce 3000 of its products. As the production manager for EESB,(a) Discuss the situation faced by EESB from the variance analysis perspective. Justifyyour answers whether EESB is in trouble or not.(b) Suggest TWO (2) appropriate decision for EESB to proceed with their next yearproduction. Explain each suggestions.
information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used 30,800 Actual costs of direct materials used $ 137,800 Standard price per unit of direct materials $ 4.28 Flexible budget for direct materials $ 121,300 Bowgie Chemicals has no materials inventories. Required:a. Prepare a short report for management showing Bowgie Chemicals’s direct materials price and efficiency variances.b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing.

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