Young Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $181 per board. This includes 20 pounds of direct materials, at the budgeted price of $2 per pound, and 10 hours of direct manufacturing labor, at the budget rate of $14.10 per hour. Following are additional data for the month of July. Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labor hours Actual direct labor cost Direct materials efficiency variance There were no beginning inventories. 5,500 units 210,000 pounds $714,000 46,000 hours $676,200 $1,100 F Calculate the actual price per pound of direct materials purchased.

Direct labor hours are estimated as 2,000 in Quarter 1; 2,100 in Quarter 2; 1,900 in Quarter 3; and 2,300 in Quarter 4. Prepare a manufacturing overhead budget using the information provided.

Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was 260,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be 25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 130 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold for June. 4. Calculate the price charged for Job 39. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? What would happen to the balance of Cost of Goods Sold?

Escuchar Products, a producer of DVD players, has established a labor standard for its productdirect labor: 2 hrs at 9.65 per hour. During January, Escuchar produced 12,800 DVD players. The actual direct labor used was 25,040 hours at a total cost of 245,392. Required: 1. Compute the labor rate and efficiency variances. 2. Prepare journal entries for all activities relating to labor.

Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.

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A manufacturer uses machine hours to allocate overhead cost to products. Budgeted information for the current year follows. Budgeted overhead cost$ 108,800Budgeted machine hours1,280machine hours Overhead cost of $21.25 is allocated to a job that uses 4 machine hours. T/F

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A company budgets $106,800 for overhead and 7,060 direct labor hours for the year. The company's Basic model uses 2 direct labor hours per unit and its Premium model uses 3 direct labor hours per unit. The direct labor rate is $43 per hour. Direct materials cost $13 per unit for the Basic model and $19 per unit for the Premium model. Enter answers in the tabs below. Required Required Required 1 2 3 Compute overhead. cost per unit for each model. Basic Premium Plantwide Direct Labor Overhead Hours per Unit Rate Overhead Cost per Unit

Sharp Company manufactures a product for which the following standards have been set:     Standard Quantityor Hours Standard Priceor Rate StandardCost Direct materials 3 feet $ 5 per foot $ 15   Direct labor ? hours   ? per hour   ?       During March, the company purchased direct materials at a cost of $43,335, all of which were used in the production of 2,425 units of product. In addition, 4,000 direct labor-hours were worked on the product during the month. The cost of this labor time was $28,000. The following variances have been computed for the month:           Materials quantity variance $ 3,750 U Labor spending variance $ 2,780 U Labor efficiency variance $ 780 U     Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance.   2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s…