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Marvel Parts, Inc., manufactures auto accessories. One of thecompany’s products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 1,005 hourseach month to produce 2,010 sets of covers. The standard costsassociated with this level of production are:

Total PerSet
of Covers
Directmaterials $ 28,542 $ 14.20
Direct labor $ 8,040 4.00
Variablemanufacturing overhead
(based on direct labor-hours)
$ 3,618 1.80
$ 20.00

During August, the factory worked only 1,200 direct labor-hoursand produced 2,600 sets of covers. The following actual costs wererecorded during the month:

Total PerSet
of Covers
Directmaterials (6,000 yards) $ 35,100 $ 13.50
Direct labor $ 10,920 4.20
Variable manufacturingoverhead $ 5,460 2.10
$ 19.80

At standard, each set of covers should require 2.00 yards ofmaterial. All of the materials purchased during the month were usedin production.

Required:
1.

Compute the materials price and quantity variances for August.(Input all amounts as positive values. Indicate the effectof each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).)



2.

Compute the labor rate and efficiency variances for August.(Input all amounts as positive values. Indicate the effectof each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).)


3.

Compute the variable overhead rate and efficiency variances forAugust. (Input all amounts as positive values. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).)

Answer:1. Materials variances:Materials price variance = (actual price - stand...
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9.

value:
3.36 points

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,070 hours each month to produce 2,140 sets of covers. The standard costs associated with this level of production are:

Total Per Set
of Covers
Direct materials $ 26,964 $ 12.60
Direct labor $ 11,770 5.50
Variable manufacturing overhead
(based on direct labor-hours)
$ 3,638 1.70
$ 19.80

During August, the factory worked only 1,000 direct labor-hours and produced 2,400 sets of covers. The following actual costs were recorded during the month:

Total Per Set
of Covers
Direct materials (6,000 yards) $ 29,280 $ 12.20
Direct labor $ 13,680 5.70
Variable manufacturing overhead $ 5,760 2.40
$ 20.30

At standard, each set of covers should require 1.50 yards of material. All of the materials purchased during the month were used in production.

Required:
1.

Compute the materials price and quantity variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)



2.

Compute the labor rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)


3.

Compute the variable overhead rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)

Answer: 1. Materials price variance:Actual quantity purchased = 6,000 yardsAct...

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 630 hours each month to produce 2,100 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 38,640 $ 18.40 Direct labor $ 6,300 3.00 Variable manufacturing overhead (based on direct labor-hours) $ 3,150 1.50 $ 22.90 During August, the factory worked only 500 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (5,000 yards) $ 36,000 $ 18.00 Direct labor $ 6,400 3.20 Variable manufacturing overhead $ 4,400 2.20 $ 23.40 At standard, each set of covers should require 2.30 yards of material. All of the materials purchased during the month were used in production. Required 1. Compute the materials price and quantity variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) 2. Compute the labor rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) 3. Compute the variable overhead rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)

Answer: 1. Materials price variance:Actual quantity of material purchased = 5,...

Marvel Parts, Inc., manufactures auto accessories. One of thecompany’s products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 1,070 hourseach month to produce 2,140 sets of covers. The standard costsassociated with this level of production are:

Total Per Set of Covers Direct materials $ 26,964 $ 12.60 Directlabor $ 11,770 5.50 Variable manufacturing overhead (based ondirect labor-hours) $ 3,638 1.70 $ 19.80 During August, the factoryworked only 1,000 direct labor-hours and produced 2,400 sets ofcovers. The following actual costs were recorded during themonth:

Total Per Set of Covers Direct materials (6,000 yards) $ 29,280$ 12.20 Direct labor $ 13,680 5.70 Variable manufacturing overhead$ 5,760 2.40 $ 20.30

At standard, each set of covers should require 1.50 yards ofmaterial. All of the materials purchased during the month were usedin production. Required 1. Compute the materials price and quantityvariances for August. (Input all amounts as positive values.Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e, zerovariance).)

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Answer: 1. Materials price variance:Actual quantity of materials purchased = 6...

Marvel Parts, Inc., manufactures auto accessories. One of thecompany’s products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 1,030 hourseach month to produce 2,060 sets of covers. The standard costsassociated with this level of production are:

Total PerSet
of Covers
Directmaterials $ 39,140 $ 19.00
Direct labor $ 9,270 4.50
Variablemanufacturing overhead
(based on direct labor-hours)
$ 3,502 1.70
$ 25.20

During August, the factory worked only 640 direct labor-hoursand produced 1,600 sets of covers. The following actual costs wererecorded during the month:

Total PerSet
of Covers
Directmaterials (5,500 yards) $ 29,920 $ 18.70
Direct labor $ 7,520 4.70
Variable manufacturingoverhead $ 4,000 2.50
$ 25.90

At standard, each set of covers should require 2.50 yards ofmaterial. All of the materials purchased during the month were usedin production.

Required:
1.

Compute the materials price and quantity variances for August.(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces. Round "Standard Price" and "Actual Price" answers to 2decimal places.)

x − = Variance
Materials price variance
x − = Variance
Materials quantityvariance
2.

Compute the labor rate and efficiency variances for August.(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces. Round "Standard Rate" and "Actual Rate" answers to 2decimal places.)

x − = Variance
Labor rate variance
x − = Variance
Labor efficiency variance


3.

Compute the variable overhead rate and efficiency variances forAugust. (Indicate the effect of each variance by selecting"F" for favorable, "U" for unfavorable, and "None" for no effect(i.e., zero variance). Round your intermediate calculations to 2decimal places. Round "Standard Rate" and "Actual Rate" answers to2 decimal places.)

x − = Variance
Variable overhead ratevariance
x − = Variance
Variable overhead efficiencyvariance
Answer: 1. Materials variances:Materials price variance = (Actual price - Stan...

Marvel Parts, Inc., manufactures auto accessories. One of thecompany’s products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 1,045 hourseach month to produce 2,090 sets of covers. The standard costsassociated with this level of production are:

Total PerSet
of Covers
Directmaterials $ 49,533 $ 23.70
Direct labor $ 10,450 5.00
Variablemanufacturing overhead
(based on direct labor-hours)
$ 4,598 2.20
$ 30.90

During August, the factory worked only 800 direct labor-hoursand produced 1,900 sets of covers. The following actual costs wererecorded during the month:

Total PerSet
of Covers
Directmaterials (6,500 yards) $ 44,460 $ 23.40
Direct labor $ 9,880 5.20
Variable manufacturingoverhead $ 4,560 2.40
$ 31.00

At standard, each set of covers should require 3.00 yards ofmaterial. All of the materials purchased during the month were usedin production.

Required:
1.

Compute the materials price and quantity variances for August.(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces. Round "Standard Price" and "Actual Price" answers to 2decimal places.)



2.

Compute the labor rate and efficiency variances for August.(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces. Round "Standard Rate" and "Actual Rate" answers to 2decimal places.)


3.

Compute the variable overhead rate and efficiency variances forAugust. (Indicate the effect of each variance by selecting"F" for favorable, "U" for unfavorable, and "None" for no effect(i.e., zero variance). Round your intermediate calculations to 2decimal places. Round "Standard Rate" and "Actual Rate" answers to2 decimal places.)


rev: 11_03_2014_QC_57955, 03_24_2015_QC_CS-10627,12_26_2015_QC_CS-36151,

Answer: 1. Materials Price Variance:Actual Quantity purchased = 6,500 yardsAct...

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Answer:1. Materials Price Variance:Actual quantity purchased and used = 6,500 ...

I previously submitted thisquestion and about 20% of the answers were wrong. The red x marksthe wrong answers. Please answer correctly and show work. Thankyou.

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Answer:First, we need to calculate the standard cost per set of covers:Direct ...

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Answer: a) Calculate the direct materials price and quantity variances for Aug...

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Answer:1. Materials Price Variance:Actual quantity of material purchased = 7,5...
Answer: 1. Materials price variance:Actual quantity purchased = 7,400 yardsAct...

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Answer: Materials Variances: Materials Price Variance = AQ(AP - SP) AQ = Actua...
Answer: Materials price and quantity variances: Materials price variance = AQ(...
Answer: To calculate the labor rate variance, we need to compare the actual ra...
Answer: Materials Price and Quantity Variances: Actual quantity of materials u...

Helix Company produces costumes used in the television and movieindustries. Recently the company received an ongoing order forSamurai robes to be worn in an upcoming Japanese historical actionseries made for television. The company uses a standard costingsystem to assist in the control of costs. According to thestandards set for these robes, the factory has a denominatoractivity level of 1,080 direct labour-hours each month, whichshould result in the production of 2,700 robes. The standard costsassociated with this level of production are as follows: Total PerUnit of Product Direct materials $ 20,790 $ 7.70 Direct labour $9,720 3.60 Variable manufacturing overhead* $ 6,480 2.40 Fixedmanufacturing overhead* $ 9,720 3.60 $ 17.30 *Based on directlabour-hours During April, the factory worked only 1,060 directlabour-hours and produced 2,600 robes. The following actual costswere recorded during the month: Total Per Unit of Product Directmaterials (6,500 metres) $ 19,500 $ 7.50 Direct labour $ 9,880 3.80Variable manufacturing overhead $ 7,020 2.70 Fixed manufacturingoverhead $ 9,100 3.50 $ 17.50 At standard, each robe should require2.2 metres of material. All of the materials purchased during themonth were used in production. Required: Compute the followingvariances for April: 1. The materials price and quantity variances.(Indicate the effect of each variance by selecting "F" forfavourable, "U" for unfavourable, and "None" for no effect (i.e.,zero variance).) 2. The labour rate and efficiency variances.(Indicate the effect of each variance by selecting "F" forfavourable, "U" for unfavourable, and "None" for no effect (i.e.,zero variance).) 3. The variable manufacturing overhead spendingand efficiency variances. (Indicate the effect of each variance byselecting "F" for favourable, "U" for unfavourable, and "None" forno effect (i.e., zero variance).) 4. The fixed manufacturingoverhead budget and volume variances. (Indicate the effect of eachvariance by selecting "F" for favourable, "U" for unfavourable, and"None" for no effect (i.e.,

Answer: Materials price variance: Actual cost of materials = 19,500 Actual qua...

Helix Company produces costumes used in the television and movieindustries. Recently the company received an ongoing order forSamurai robes to be worn in an upcoming Japanese historical actionseries made for television. The company uses a standard costingsystem to assist in the control of costs. According to thestandards set for these robes, the factory has a denominatoractivity level of 855 direct labour-hours each month, which shouldresult in the production of 2,850 robes. The standard costsassociated with this level of production are as follows:

Total Per Unit of Product
Directmaterials $ 64,125 $ 22.50
Direct labour $ 5,985 2.10
Variablemanufacturing overhead* $ 2,565 0.90
Fixed manufacturingoverhead* $ 2,565 0.90
$ 26.40
*Based on directlabour-hours

DuringApril, the factory worked only 835 direct labour-hours and produced3,000 robes. The following actual costs were recorded during themonth:

Total Per Unit of Product
Direct materials(9,500 metres) $ 66,900 $ 22.30
Direct labour $ 6,900 2.30
Variablemanufacturing overhead $ 9,300 3.10
Fixed manufacturingoverhead $ 2,400 .80
$ 28.50

At standard, each robe shouldrequire 3.0 metres of material. All of the materials purchasedduring the month were used in production.
Required:
Compute the followingvariances for April:
1.

The materials price and quantity variances. (Do notround intermediate calculation. Indicate the effect of eachvariance by selecting "F" for favourable, "U" for unfavourable, and"None" for no effect (i.e., zero variance).)

2.

The labour rate and efficiency variances. (Do not roundintermediate calculation. Indicate the effect of each variance byselecting "F" for favourable, "U" for unfavourable, and "None" forno effect (i.e., zero variance).)

3.

The variable manufacturing overhead spending and efficiencyvariances. (Do not round intermediate calculation. Indicatethe effect of each variance by selecting "F" for favourable, "U"for unfavourable, and "None" for no effect (i.e., zerovariance).)

4.

The fixed manufacturing overhead budget and volume variances.(Do not round intermediate calculation. Indicate the effectof each variance by selecting "F" for favourable, "U" forunfavourable, and "None" for no effect (i.e., zerovariance).)

Answer: Materials price variance: Actual cost of materials = 9,500 meters x $7...

The Brilliant Furniture Company has established standard costs for the cabinet department in which one size of a single four-drawer style if dresser is produced. The standard costs are used in evaluating actual performance. The standard costs of producing one of these dressers are shown below: Direct material: Lumber –50 board feet @ Br. 5 = Br. 250 Direct labour : 3hours @ Br. 24 = 72 Factory over head: Variable costs :3 hours @ Br. 10 = 30 Fixed costs : 3hours @ Br. 20 = 60 Total per dresser Br. 412 The actual costs of operations to produce 400 of these dressers during January are as follows (there were no initial inventories) Direct material purchased: 25000 board feet @5.60 = Br. 140,000 Direct material used: 19000 board feet Direct labour: 1,100 hours @ Br. 22 = 24,200 Factory over head: Variable costs = 12,760 Fixed costs = 29,800 The flexible budget for this department at the monthly volume level used to set the budgeted fixed –overhead rate called for 1,400 direct labour hours of operation.

At this level, the variable overhead was at Br. 14,000 and the fixed overhead at Br. 28,000. Required: compute the following variances from standard cost. Label your answers favorable (F) or unfavorable (U).

1. Direct material price variance, isolated at time of purchase

2. Direct material quantity variance

3. (a) Direct labour price variance

    (b) Direct labour efficiency variance

4. (a) Variable –over head flexible budget variance

    (b) Fixed –over head spending (flexible budget) variance

    (c) Fixed –overhead production volume variance

5. (a) Variable –over head spending variance

    (b) Variable –over head efficiency variance

Answer: Direct material price variance, isolated at time of purchase: Actual c...

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