Tip Top Corp. produces a product that requires nine standard gallons per unit. The standard price is $8.5 per gallon. If 4,600 units required 42,200 gallons, which were purchased at $8.07 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 55,000 actual direct labor hours and incurred $520,000 of actual manufacturing overhead costs. The Corporation had estimated that it would work 52,000 direct labor hours during the year and incur $468,000 of manufacturing overhead costs. The Corporation's manufacturing overhead cost for the year was: a. overapplied by $25,000. b. underapplied by $27,000. c. overapplied by $27,000. d. underapplied by $25,000. Osprey Production uses job-order costing for batches of customer-printed T-shirts. For job R45, the company incurred the following costs: Direct materials used $4,235 Direct labor $1,300 Applied overhead $450 Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. If Job R45 consisted of 570 shirts, how much is the cost per shirt for this job?
Tip Top Corp. produces a product that requires nine standard gallons per unit. The standard price is $8.5 per gallon. If 4,600 units required 42,200 gallons, which were purchased at $8.07 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 55,000 actual direct labor hours and incurred $520,000 of actual manufacturing overhead costs. The Corporation had estimated that it would work 52,000 direct labor hours during the year and incur $468,000 of manufacturing overhead costs. The Corporation's manufacturing overhead cost for the year was: a. overapplied by $25,000. b. underapplied by $27,000. c. overapplied by $27,000. d. underapplied by $25,000. Osprey Production uses job-order costing for batches of customer-printed T-shirts. For job R45, the company incurred the following costs: Direct materials used $4,235 Direct labor $1,300 Applied overhead $450 Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. If Job R45 consisted of 570 shirts, how much is the cost per shirt for this job?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need help with question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education