Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 13, Problem 4E
To determine
Review the management’s decision based on the lead times for each product.
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Lead Time Analysis
Furry Friends Inc. manufactures toy stuffed animals. The direct labor time required to cut, sew, and stuff a toy is 10 minutes per unit. The company makes two types of stuffed toys—a lion and a bear. The lion is assembled in lot sizes of 50 units per batch, while the bear is assembled in lot sizes of 8 units per batch. Since each product has direct labor time of 10 minutes per unit, management has determined that the lead time for each product is 10 minutes.
a. Lead time includes ___, ___, and ___.
Value-added time, wait time and other non-value-added time.
Production time, packing time and value-added time.
Idle time, direct labor hours, and wait time.
None of the above.
b. A toy manufacturing unit produces two types of products and the labor time for the each product is 10 minutes. The batch size of product A is 50 units and batch size of product B is 8 units. The company considers the lead time of the products is equal to the labor hour’s. Is the decision…
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The
labor standards that have been set for one Jogging Mate are as follows:
Standard Hours
30 minutes
Standard Rate
per Hour
$6.20
During August, 10,370 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled
$62,220 for the month.
Standard
Cost
$3.10
Required:
1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates?
2. What is the standard labor cost allowed (SH SR) to make 19,600 Jogging Mates?
3. What is the labor spending variance?
4. What is the labor rate variance and the labor efficiency variance?
5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $49,776 in
variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
(For requirements 3 through 5, indicate the…
CLEAR MY CHOICE
XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each
month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. The company uses two activities in
manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,500 a month, allocated
on the basis of direct labor hours. The cost associated with Finishing is $12,000 a month, allocated on the basis of
batches. Baseball bats use 1/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing
cost for one baseball bat?
O a. $3.5
O b. $3.46
O c. None of the given answer is correct.
O d. $3
O e. $2.96
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Chapter 13 Solutions
Managerial Accounting
Ch. 13 - What is the benefit of the lean philosophy?Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Why would a lean manufacturer strive to produce...Ch. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 1BECh. 13 - Prob. 2BECh. 13 - Prob. 3BECh. 13 - Prob. 4BECh. 13 - Prob. 5BECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Lean principles Rag Swag Inc. manufactures various...Ch. 13 - Prob. 4ECh. 13 - Reduce setup time Vernon Inc. has analyzed the...Ch. 13 - Compute lead time Jackson Fabricators Inc....Ch. 13 - Calculate lead time Williams Optical Inc. is...Ch. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Lean accounting Modern Lighting Inc. manufactures...Ch. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Process activity analysis The Brite Beverage...Ch. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Lean principles Bright Night, Inc., manufactures...Ch. 13 - Prob. 2PACh. 13 - Lean accounting Dashboard Inc. manufactures and...Ch. 13 - Pareto chart and cost of quality report for a...Ch. 13 - Prob. 1PBCh. 13 - Lead time Master Chef Appliance Company...Ch. 13 - Lean accounting Com-Tel Inc. manufactures and...Ch. 13 - Pareto chart and cost of quality report for a...Ch. 13 - Prob. 1MADCh. 13 - Prob. 2MADCh. 13 - Prob. 3MADCh. 13 - Prob. 4MADCh. 13 - Ethics in Action In August, Lannister Company...Ch. 13 - Prob. 3TIFCh. 13 - Prob. 1CMACh. 13 - Prob. 2CMACh. 13 - In measuring the cost of quality, which one of the...Ch. 13 - Prob. 4CMA
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