The KC Company developed the following standards for the manufacture of its product: • Each unit should have 4 pounds of direct materials purchased at $12 per pound. • Each unit should be produced in 2 hours at a direct labor cost of $20 per hour. Actual production was 12,000 units using 49,000 pounds of direct materials at a total cost of $586,200 and required 23,500 direct labor hours at a total cost of $479,000. What was the direct labor quantity variance for the company? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.
Q: Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000…
A: Variable Cost :— It is the cost that changes with change in units of activity. Variable cost per…
Q: GENERAL JOURNAL Date During Jan. GENERAL JOURNAL Date During Jan. During Jan. Raw Materials…
A: Cost accounting is defined as the branch of accounting used by manufacturing entities in order to…
Q: ESSAY. Write your answer in the space provided or on a separate sheet of paper. 40) Ace Sporting…
A: Rebate means an incentive given to customers for bulk purchases. In case customers has not redeem…
Q: Crane Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax…
A: Income Tax: - Income Tax is the direct tax charged by the government on the income earned by the…
Q: On January 2, 2011, Winstead & Company purchased 1,150,000 shares of the Secrest Company for $32.0…
A: Introduction To calculate the book value of Winstead & Co's investment in Secrest Co as of…
Q: Talent Search Inc's income statement for the year ended December 31, 2025 showed: Sales $477,247…
A: Working capital is the difference between the current assets and the current liabilities. It is…
Q: Using high-low method calculate and express the cost behavior in equation form 2) Predict the…
A: The costs incurred for production are classified as fixed and variable Costs. The high low method…
Q: Transactions for the month of July for Shelly's Bookstore were as follows: Purchases (balance) 600 @…
A: There are different methods for valuing inventories .LIFO,FIFO,Average cost method,Specific…
Q: ! Required information [The following information applies to the questions displayed below.] Shadee…
A: The budget is prepared to estimate the cost for the period. The direct materials budget helps to…
Q: This is a new manufacturing corporation that issued $50000 common stock for cash on the first day.…
A: Financial statements are the statements which are prepared at the end of an accounting period. These…
Q: Sheffield Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During…
A: The journal entries are prepared to record the transactions on regular basis. The treasury stock…
Q: Learning Objective 3: Question 1: Straight-line Method Wired Inc. sold 10-year bonds with a total…
A: Answer:- Bonds:- Bonds are tradable assets that are securitized versions of corporate debt issued…
Q: On January 1, a company purchased equipment for $50,000 with an expected useful life of 5 years and…
A: The straight-line method of depreciation is a common accounting technique for distributing an…
Q: Cheesesteak's Sandwich Shop had the following long-term asset balances as of January 1, 2024: Cost…
A: Answer:- Depreciation:- An asset loses value over time as a result of use, damage etc. Depreciation…
Q: The profit earned by a business in 2022 was £72,500. The proprietor injected new capital of £8,000…
A: Net assets is the amount which represents the resources owned by the entity. These are the resources…
Q: Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and…
A: To determine the price level at which the upgraded camera will begin to improve operational…
Q: Liza's budgets sales of $49,000 for May and $63,000 for June. Assume 60% of Liza's sales are for…
A: The question is based on the concept of Cost Accounting. Cash Receipt Budget :— This budget is…
Q: Compute cost of goods sold, assuming Sunland uses: (Round average cost per unit to 4 decimal places,…
A: Inventory method adoption refers to the process of implementing a specific method for managing and…
Q: Family Games, Inc., is a privately owned company with annual sales from a variety of wholesome…
A: CPAs are licensed by state boards of accountancy and are authorized to provide accounting services…
Q: project that it is considering: Initial investment Annual cash flow $ 480,000 $ 145,000 per year Use…
A: Net present value is most important capital budgeting techniques and based on time value of money.…
Q: Explain why company managers might choose to issue zero-coupon bonds instead of interest-bearing…
A: Companies can issue both coupon bonds and zero-coupon bonds as fixed-income securities to raise…
Q: rated as the largest shopping mall in North America. The company's board of directors, after much…
A: INTRODUCTION:- This is a financial accounting question that involves preparing journal entries…
Q: owing transactions occurred during June of this year: deposited $53,000 in a bank account in the…
A: An accounting ledger account's graphic depiction is a T-account. Its shape, which resembles the…
Q: rovide a short narrative of your analysis of the problem. Explain what theories/ concepts apply,…
A: Introduction:- CVP analysis is used to identify the changes in costs and volume affect a company's…
Q: Flower Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in…
A: Disbursements refer to payments made by a company or an individual to settle an obligation or…
Q: The COCO Manufacturing Company has been forced into bankruptcy as of April 30, 2022. The statement…
A: It has been given in the question that the prepaid expenses are non-recoverable. In asset…
Q: View Policies Current Attempt in Progress Kingbird Corporation is authorized to issue 53,000 shares…
A: Journal entry is the first step in the recording of any transaction. a journal entry is made based…
Q: 10, 2020 30, 2020 2020 Exchange Rate §1 = $.48 §1 = $.50 §1 = $.44
A: The amount of foreign exchange gain or loss recorded on October 10, 2020 is calculated on the basis…
Q: Problem 19-58 (LO 19-4) (Algo) [The following information applies to the questions displayed below.]…
A: Acquisition Investigation: An acquisition is when one firm acquires the majority of or all of the…
Q: The balance sheet for Munoz Corporation follows: Current assets Long-term assets (net) Total assets…
A: Financial ratios are very important in determining the liquidity and profitability and financial…
Q: Question is attached thxn for the hepl ealpgwl gapreciated it i31ptj13pit
A: Provision for Uncollected Account Bad debts are accounts receivable, loans, or other liabilities…
Q: Foster Corporation produces and sells one product. The budgeted selling price per unit is $105.…
A: Accounts receivable is a current asset account that represents the amounts owed to a business by its…
Q: Required: 1. Prepare a schedule of expected cash collections for April, May, and June, and for the…
A: A cash Budget is a company's budget that shows an estimation of collections in cash i.e, cash…
Q: Vermont Treats makes blueberry jam and blueberry syrup. Both products come out of a joint process…
A: Joint cost is the cost allocated to the products jointly involved in the process of production. It…
Q: The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly…
A: Factory overhead rate = Budgeted factory overhead/Budgeted direct labor hours Overhead applied =…
Q: the amount applied to principle for the third month of a 4-year loan of $22,300 which charges 3.3…
A: Loans are paid by monthly payment and these monthly payment carry the payment of interest and…
Q: Product Pricing: Two Products Quality Data manufactures two products, CDs and DVDs, both on the same…
A: INTRODUCTION:- In this question, we are presented with a scenario of Quality Data, a company that…
Q: Tax-deferred annuities pay no taxes on the income placed into the account but then pay taxes on all…
A: Future value of amount include the amount that is being deposited and amount of interest accumulated…
Q: 000, accumulated depreciation to the contribution date of $37,000, and a fair value of $24,000.
A: Equipment Truck Total Fair Value-A 46,000 24,000 70,000 Historical…
Q: Zebra Enterprises is in the business of manufacturing iron buckets. The firm is headquatered in…
A: Total working capital required = Raw materials + Work-in-progress + Finished goods + Credit allowed…
Q: Adger Corporation is a service company that measures its output based on the number of customers…
A: Flexible budget = Actual output*Variable element per customer served
Q: How do companies account for long-term assets such as property, plant, and equipment, and what are…
A: Long-term assets such as property, plant, and equipment are critical to the operations of many…
Q: (a) What is the price of the bond? (b) Compute the price of the bond if the yield were to increase…
A: (a) To calculate the price of the bond after the 12th coupon has been paid, we need to find the…
Q: In response to an increased level of assessed risk of material misstatement, an auditor of…
A: The auditor shall perform RAP i.e Risk Assessment Procedure that provides a reasonable assurance…
Q: Briefly explain your understanding of exempt income and state twelve (12) types of exempt income…
A: Exempt income refers to income that is not subject to taxation under the relevant tax laws or…
Q: Compute Altoona Company's (a) inventory turnover ratio and (b) number of days' sales in inventory…
A: Inventory Turnover Ratio:- Inventory turnover ratio is a financial metric used to measure how many…
Q: Pabon Corporation makes one product. Budgeted unit sales for August and September are 11,100 and…
A: Introduction: Direct labor cost is calculated for the actual hours deployed by the labor in the…
Q: When an individual owns directly stocks of the company, he has: Group of answer choices a. Direct…
A: Direct financial interest refers to a situation where an individual or entity has a financial stake…
Q: The management of Roberts Corporation is investigating automating a process. Old equipment, with a…
A: Simple Rate of Return : The simple rate of return is also known as accounting rate of return. This…
Q: Thomas Company buys and sells a product that has a variable cost per unit of $14. Thomas' fixed…
A: The variable costs directly change with sales if the entity increases sales the variable costs…
Tt3.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
- Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
- Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total overhead of $600,000 has traditionally been allocated by direct labor hours, with 400,000 hours for the Standard and 200.000 hours for the Slap Shot. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $450.000 of overhead, with 30,000 hours used on the Standard product and 15,000 hours used on the Slap Shot product. It was also estimated that the inspection cost pool would have $150,000 of overhead, with 25,000 hours for the Standard and 5,000 hours for the Slap Shot. What is the overhead rate per product, under traditional and under ABC costing?To make a batch of 1,000 units of a certain item, it is estimated that 120 direct labor hours are required at a cost of $10/hour. Direct material costs are estimated at $1,500 per batch. The overhead costs are calculated based on an overhead rate of $7.50 per direct labor hour. The item can be readily purchased from a local vendor for $4 per unit. a. Should the item be made or purchased? b. Over what range of overhead rate is your answer in part a valid?Fall Industries has set the following standards for one unit: Direct material Quantity: 45 yards Price per yard: $2.70 per yard Direct labor Quantity: 9 hours per unit Rate per hour: $16 per hour Actual costs incurred in the production of 1,200 units were as follows: Direct material: $99,000 ($2.75 per yard) Direct labor: $129,560 ($15.80 per hour) All materials purchased were consumed during the period. Required: 1. Calculate the direct-material price and quantity variances. Indicate whether each variance is favorable or unfavorable. 2. Calculate the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. 3. Write a memo to your manager with the results of your findings. a. What do each of the variances mean (describe what each variance measures)? b. How is Fall performing based on each of these variances? c. What variances suggest improvement is needed, and how can the company improve that specific variance (give two specific ways per…
- Jean Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor. Direct materials: 2.5 meters @ P14 per meter DIrect Labor: 1.6 hours @ P8 per hour P35.00 P12.80 During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows: 50,000 meters of materials were purchased at a cost of P13.80 per meter. 40,000 meters of materials were used. 25,000 direct labor hours were used at a cost of P8.60 per hour. Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Actual Cost per Cost per Unit Unit Direct materials: $ 2.52 Standard: 1.80 feet at $1.40 per foot Actual: 1.75 feet at $1.80 per foot Direct labor! $ 3.15 Standard: 0.90 hours at $17.00 per hour Actual: 0.95 hours at $16.40 per hour 15.30 15.58 Variable overhead: Standardı 0.90 hours at $6.00 per hour Actual: 0.95 hours at $5.60 per hour 5.40 5.32 Total cost per unit $23.22 $24.05 Excess of actual cost over standard cost per unit $0.83 The production superintendent was pleased when he saw this report and commented: "This $0.83 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 11,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were…Nachor Company manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs $2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively: $500 and $500 $500 and $1,000 $1,000 and $1,000 $1,000 and $2,000 None of the above