Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 11, Problem 11.53AP
1.
To determine
To compute: The direct materials price and quantity variance.
2.
To determine
To compute: The direct labor rate and efficiency variances.
3.
To determine
To compute: The variable
4.
To determine
To compute: The fixed overhead budget and volume variance.
5.
To determine
To indicate: The company’s decision for purchasing superior material wise or not and will it affect the other variances.
6.
To determine
To record: The
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Healthfirst (HF) Ltd has recently started to produce a face shield and product's standard cost data
are as follows:
Cost per unit
Direct materials Perspex (0.5 meters @ $15 per meter)
$ 7.50
Direct materials Hardened Plastic (0.25 meters at $20.00 per meter) 5.00
Direct manufacturing labour (0.5 hr @ $30.00 per hr)
Manufacturing overhead
Total Cost
15.00
Required
Should HF accept the offer. Show all computations.
30.00
$57.50
Additional information
45% of the Manufacturing overhead changes with the number of units produced. Additionally, if
production of face shields is discontinued, 20% of the remaining fixed cost will be avoided. The
budgeted production used to compute overheads is 10,000 units per quarter. HF has been
approached by another company who is willing to supply the face shields at $50. Per unit. The
space used to manufacture face shields can be used to Generate $ 120,000 in contribution margin
per quarter.
Please answer parts 5-8 according to the images attached below.
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost
Direct materials
?
$ 5.00
per yard
$ ?
Direct labor
?
?
?
Variable manufacturing overhead
?
$ 2
per direct labor-hour
?
Total standard cost per unit
$ ?
Overhead is applied to production on the basis of direct labor-hours. During March, 780 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:
Materials Used
Direct Labor
Variable Manufacturing Overhead
Total standard cost allowed*
$ 15,600
$ 13,104
$ 2,496
Actual costs incurred
$ 13,112
?
$ 5,491
Materials price variance
?
Materials quantity variance
$ 790
U
Labor rate variance
?
Labor efficiency variance
?
Variable…
Highland Company produces a lightweight backpack popular with college students. Standard variable costs relating to a single backpack are given below:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost
Direct materials
?question mark
$ 6.00
per yard
$ ?question mark
Direct labor
?question mark
?question mark
?question mark
Variable manufacturing overhead
?question mark
$ 2
per direct labor-hour
?question mark
Total standard cost per unit
$ ?question mark
Overhead is applied to production based on direct labor-hours. During March, 800 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:
Materials Used
Direct Labor
Variable Manufacturing Overhead
Total standard cost allowed*
$ 19,200
$ 9,200
$ 1,600
Actual costs incurred
$ 11,100
?question mark
$ 4,740
Materials price variance
?question mark
Materials quantity variance
$ 3,000
U
Labor rate variance
?question mark…
Chapter 11 Solutions
Managerial Accounting (5th Edition)
Ch. 11 - (Learning Objective 1) Which of the following is...Ch. 11 - (Learning Objective 2) The direct material price...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - (Learning Objective 4) Which of the following is...Ch. 11 - Prob. 7QCCh. 11 - (Learning Objective 6) Which of the following is...Ch. 11 - Prob. 9QCCh. 11 - (Learning Objective 7Appendix) Which of the...
Ch. 11 - Compute the standard cost of direct materials...Ch. 11 - Compute the standard cost of direct labor...Ch. 11 - Explain a direct material variance (Learning...Ch. 11 - Prob. 11.4SECh. 11 - Calculate direct material variances when the...Ch. 11 - Calculate direct labor variances (Learning...Ch. 11 - Prob. 11.7SECh. 11 - Prob. 11.8SECh. 11 - Calculate fixed overhead variances (Learning...Ch. 11 - Calculate and interpret fixed overhead variances...Ch. 11 - Prob. 11.11SECh. 11 - Calculate and interpret overhead variances...Ch. 11 - Record costing transactions (Learning Objective 7)...Ch. 11 - Record standard costing transactions (Learning...Ch. 11 - Identify ethical standards violated (Learning...Ch. 11 - Vocabulary (Learning Objectives 1, 2, 3, 4, 5, 6)...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Calculate and interpret direct material and direct...Ch. 11 - Calculate the material and labor variances...Ch. 11 - Record materials and labor transactions (Learning...Ch. 11 - Calculate the standard cost of a product before...Ch. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Compute and interpret overhead variances (Learning...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Make journal entries in a standard costing system...Ch. 11 - Prepare a standard cost income statement (Learning...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate the standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Prob. 11.38BECh. 11 - Prob. 11.39BECh. 11 - Prob. 11.40BECh. 11 - Prob. 11.41BECh. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Calculate and interpret overhead variances...Ch. 11 - Prob. 11.44BECh. 11 - Prob. 11.45BECh. 11 - Prob. 11.46BECh. 11 - Prob. 11.47BECh. 11 - Prob. 11.48BECh. 11 - Prob. 11.49APCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Prob. 11.52APCh. 11 - Prob. 11.53APCh. 11 - Prob. 11.54BPCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Work backward through labor variances (Learning...Ch. 11 - Determine all variances and make journal entries...Ch. 11 - Calculate labor variances in a hotel (Learning...
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