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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![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?](https://content.bartleby.com/qna-images/question/2734d59b-9f6e-4a48-9ef4-051928ad5168/c63f55b3-352d-4037-a08d-d403c1c66c02/76tyiwf_thumbnail.jpeg)
Transcribed Image Text: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?
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