ACCT 002 Lecture 21: Acc 2 11_1

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skywildebeest596

5 Aug 2020

School

College of The Sequoias

Department

Accounting (ACCT)

Course

ACCT 002

Professor

teller

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Document Summary

11:1 materials and it should reflect the final, delivered cost of those materials produce one unit of finished goods. Direct labor quantity and price standards are usually expressed in terms of labor hours or a labor rate for each unit of finished product, including an allowance for normal inefficiencies such as scrap and spoilage. Standard quantity per unit- defines the amount of direct materials that should be used. Standard price per unit- defines the price that should be paid for each unit of direct. Standard hours per unit- defines the amount of direct labor hours that should be used to. Standard rate per hour- defines the company"s expected direct labor wage rate per hour, *the standard rate per unit that a company expects to pay for variable overhead equals. Standard cost card- shows the standard quantity (or hours) and the standard price (or. Flexible budget performance report for variable manufacturing costs.

Related Questions

1. The following data is given for the Stringer Company:

Budgeted production	26,000 units
Actual production	27,500 units
Materials:
Standard price per ounce	$6.50
Standard ounces per completed unit	8
Actual ounces purchased and used in production	228,000
Actual price paid for materials	$1,504,800
Labor:
Standard hourly labor rate	$22 per hour
Standard hours allowed per completed unit	6.6
Actual labor hours worked	183,000
Actual total labor costs	$4,020,000
Overhead:
Actual and budgeted fixed overhead	$1,029,600
Standard variable overhead rate	$24.50 per standard labor hour
Actual variable overhead costs	$4,520,000

Overhead is applied on standard labor hours.

The direct materials price varianceis______________________________________

The direct materials quantity varianceis___________________________________

viridianelephant828

The? Sudbury, South? Carolina, plant of Shannon Sports Companyhas the following standards for its soccer ball? production:

Standards:	0.1 yard
Material (leather) per soccer ball	$21
Material price per yard	0.40 Hour
Direct labor hours per soccer ball	$11 per hour
Wage rate per direct labor hour	$12 per direct labor hour
Variable support cost rate
Actual results for October:
Used 13500 yards of raw material, purchased for $280,530.00. Paid for 8,200 direct labor hours at $11.30 per hour. Incurred $82,000 of variable support costs Manufactured 25,000 soccer balls

Requirements

Determine the following variances for? October:

?(a)	Total direct material cost variance and indicate whether thevariance is favorable or unfavorable
?(b)	Total direct labor cost variance
?(c)	Total variable support cost variance
?(d)	Direct material price variance
?(e)	Direct material quantity variance
?(f)	Direct labor rate variance
?(g)	Direct labor efficiency variance
?(h)	Variable support rate variance
?(i)	Variable support efficiency variance

AH? = Actual number of direct labor hours

AP? = Actual price per unit of materials

AQ? = Actual quantity of materials used

AR? = Actual wage rate

SH? = Number of direct labor hours allowed given the level ofoutput achieved

SP? = Estimated or standard price per unit of materials

SQ? = Standard quantity of materials allowed for the productionlevel achieved

SR? = Standard wage rate

blackcricket13

Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.1	ounces	$	2.00	per ounce	$	12.20
Direct labor		0.7	hours	$	12.00	per hour	$	8.40
Variable overhead		0.7	hours	$	2.00	per hour	$	1.40

The company reported the following results concerning this product in February.


Originally budgeted output		5,400	units
Actual output		5,700	units
Raw materials used in production		33,100	ounces
Actual direct labor-hours		2,030	hours
Purchases of raw materials		28,300	ounces
Actual price of raw materials	$	17.10	per ounce
Actual direct labor rate	$	7.60	per hour
Actual variable overhead rate	$	1.10	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for February is:

Multiple Choice

$1,827 F

$1,832 F

$1,827 U

$1,832 F

plumcockroach406

ACCT 002 Lecture 21: Acc 2 11_1

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