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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Textbook Question
Chapter 15, Problem 15.21P
Problem 15.21
LO 4, 5
Direct labor variances-insurance company application The Foster Insurance Company developed standard times for processing claims. When a claim was received at the processing center, it was first reviewed and classified as simple or complex. The standard time for processing was:
| Simple claim | 45 minutes |
| Complex claim | 2.5 hours |
Employees were expected to be productive 7.5 hours per day. Compensation costs were $90 per day per employee. During April, which had 20 working days, the following number of claims were processed:
Simple claims 3,000 processed
Complex claims 600 processed
Required:
- Calculate the number of workers that should have been available to process April claims.
- Assume that 27 workers were actually available throughout the month of April. Calculate a labor efficiency variance expressed as both a number of workers and a dollar amount for the month.
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Question 23
View Policies
Current Attempt in Progress
upport
The predetermined overhead rate for Crane Company is
$5, comprised of a variable overhead rate of $3 and a fixed
rate of $2. The amount of budgeted overhead costs at
normal capacity of $150000 was divided by normal
capacity of 30000 direct labor hours, to arrive at the
predetermined overhead rate of $5. Actual overhead for
June was $14208 variable and $8640 fixed, and 2400 units
were produced. The direct labor standard is 2 hours per
unit produced. The total overhead variance is
O $1152 F.
O $2880 U.
O $2880 F.
O $1152 U.
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Question 2
View Policies
Current Attempt in Progress
The per unit standards for direct labor are 2 direct labor
hours per unit at $12 per hour. If the actual direct labor
payroll cost was $25,600 for 2,000 direct labor hours
worked to produce 1,200 units, the total direct labor
variance is
O $1,000 unfavorable.
O $3,200 unfavorable.
O $960 unfavorable.
O $3.200 favorable.
Chp
Ch. 8 Homework Question 6
Please answer and solve the following
Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31 and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.
Required: 1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $2.) (Round your answer to 2 decimal places.)
2. Determine Shadee's budgeted cost of goods sold for May and June.
Chapter 15 Solutions
Accounting: What the Numbers Mean
Ch. 15 - Prob. 15.1MECh. 15 - Prob. 15.2MECh. 15 - Prob. 15.3MECh. 15 - Prob. 15.4MECh. 15 - Mini-Exercise 15.5 LO 4, 5, 6 Variable overhead...Ch. 15 - Mini-Exercise 15.6
LO 4. 5, 6
Fixed overhead...Ch. 15 - Prob. 15.7ECh. 15 - Prob. 15.8ECh. 15 - Prob. 15.9ECh. 15 - Prob. 15.10E
Ch. 15 - Prob. 15.11ECh. 15 - Prob. 15.12ECh. 15 - Exercise 15.13 LO 4. 5 Direct material...Ch. 15 - Exercise 15.14 LO 4, 5 Direct material...Ch. 15 - Prob. 15.15ECh. 15 - Prob. 15.16ECh. 15 - Exercise 15.17 LO 9 Investment center analysis;...Ch. 15 - Prob. 15.18ECh. 15 - Problem 15.19 LO 4. 5 Calculate variable cost...Ch. 15 - Problem 15.20 LO 4. 5 Calculate variable cost...Ch. 15 - Problem 15.21 LO 4, 5 Direct labor...Ch. 15 - Problem 15.22 LO 4, 5 Direct labor...Ch. 15 - Problem 15.23 LO 5, 6 Fixed overhead...Ch. 15 - Case 15.25 LO 3 Performance reporting The chair of...Ch. 15 - Case 15.26 LO 3 Flexible budgeting One of the...Ch. 15 - Case 15.27 LO 4 Frequency of performance reporting...Ch. 15 - Case 15.28 LO 5 Rank the importance of eight...Ch. 15 - Case 15.29 LO 4. 5 Direct material variances-the...Ch. 15 - Case 15.30 LO 5 Evaluate the effects of erroneous...Ch. 15 - Prob. 15.31CCh. 15 - Case 15.32 The planning and control environment:...
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- Question 5 10 pts Mohlin Medical Supply (MMS) produces extraordinary surgical equipment. The company's CFO is preparing information for the management team that explains November's month-end adjustment to cost-of-goods sold. Income BEFORE the overhead adjustment = $797,000. Income AFTER the overhead adjustment = $809,000. The adjustment reflects the ACTUAL overhead of $320,000. The original planning budget used the following assumptions: (1) overhead = $300,000 (2) direct labor hours = 12,000, and (3) machine hours = 7,500. MMS applies overhead on the basis of direct labor hours. Compute actual hours used to apply overhead in November. O 7,700 hours 8,300 hours O 12,320 hours O 13,280 hours O None of the other answers are correctarrow_forwardCh. 8 Homework Question 4 Please solve and explain the following: Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced. Required:1. Determine Shadee's budgeted cost of closures purchased for May and June 2. Determine Shadee's budget manufacturing overhead for May and Junearrow_forward--/1 Question 22 View Policies Current Attempt in Progress The predetermined overhead rate for Coronado Industries is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $12680 variable and $8040 fixed, and standard hours allowed for the product produced in June was 4000 port hours. The total overhead variance is O $720 F. O $4040 F. O $4040 U. O $720 U. hp ins f12 f11 f10 prt sc f9 144 f8 f7 f6 f5 4+ 8 %3D C 60 To 96arrow_forward
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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