Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 14, Problem 14.6ME
Mini-Exercise 14.6
LO 10
Standard product cost In addition to the information presented in Mini-Exercises 14.1 and 14.2, ABC Company currently pays a standard rate of $1 per pound for raw materials. Each unit should he produced in 15 minutes of direct labor time at a standard direct labor rate of $l2 per hour. Manufacturing
Required:
Calculate the
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Question 6:
Your company currently produces a range of three products, D, E, and F to which the following details relate for Period 2.
D E F
Production (units) 1,500 2,500 14,000
Material cost per unit
Br. 18
Br. 10
Br. 20
Labor hours per unit
1
3
2
Machine hours per unit
3
2
6
Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows:
Set-up cost 327,250
Handling cost 187,000
Machine cost 140,250
Inspection cost 280,500
935,000
Calculate the cost per unit for each product using conventional
The introduction of an ABC is being considered and to that end the following volume…
Question 2
RU Limited operates a system of standard costing in respect of one its products which is manufactured within a single cost centre.
The standard price of material is N$20 per litre. The standard wage rate is N$ 12 per hour and 5 hours are allowed to produce on unit Fixed production overhead is absorbed at the rate of 100% of wages cost.
During the month of September 2020 the following took place:
N$
Actual price (paid for materials purchased) 19.50 per litre
Total direct wages cost 156 000
Fixed production overhead 158 000
Variances
N$
Type
Favour (F)
Unfavourable (U)
Direct material price
80 000
Direct material usage
5 000
Direct labour rate
5 760
Direct labour efficiency
2 760…
problem 5
Marites Company employs standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials – P14.50; Direct Labor for 2 hours @ P8/hr is P16; Manufacturing overhead for 2 hours @ P11/hr is P22. The total cost/unit (14.50+16+22) = P52.50. The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct labor hours. The company planned to produce 25,000 units each month during 2020. Budgeted factory overhead for 2020 is composed of P3,600,000 variable and P3,000,000 fixed. During April 2021, 26,000 units of product were produced using 53,500 direct labor hours at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during April was P572,000. The variable overhead spending variance must be:
Chapter 14 Solutions
Accounting: What the Numbers Mean
Ch. 14 - Prob. 14.1MECh. 14 - Mini-Exercise 14.2 LO 4, LO 5 Purchases budget In...Ch. 14 - Mini-Exercise 14.3 LO 6 Operating expense budget...Ch. 14 - Mini-Exercise 14.4 LO 8 Cash receipts analysis In...Ch. 14 - Mini-Exercise 14.5 LO 8 Cash budget In addition to...Ch. 14 - Mini-Exercise 14.6 LO 10 Standard product cost In...Ch. 14 - Exercise 14.7 LO 4, 5 Production and purchases...Ch. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Exercise 14.10
LO 4. 5
Production and purchases...
Ch. 14 - Exercise 14.11
LO 4, 8
Cash receipts budget Fox...Ch. 14 - Prob. 14.12ECh. 14 - Prob. 14.13ECh. 14 - Prob. 14.14ECh. 14 - Exercise 14.15
LO 10, 11
Standard absorption cost...Ch. 14 - Prob. 14.16ECh. 14 - Problem 14.17
LO 4, 5
Purchases budget Brooklyn...Ch. 14 - Problem 14.18
LO 4, 5
Purchases budget—analytical...Ch. 14 - Prob. 14.19PCh. 14 - Prob. 14.20PCh. 14 - Prob. 14.21PCh. 14 - Prob. 14.22PCh. 14 - Prob. 14.23PCh. 14 - Prob. 14.24PCh. 14 - Prob. 14.25CCh. 14 - Case 14.26 Budget of the United States government:...Ch. 14 - Prob. 14.27C
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY