The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor (Click the icon to view the standards.) The number of finished units budgeted for January 2017 was 9,660; 9,600 units were actually produced. (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 96,600 lb., at a total cost of $478,170. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Read the autrement Requirement 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar) Actual input x Budgeted price. Cost Direct materials (purchases) Direct materials (usage) Direct manufacturing labor

The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor (Click the icon to view the standards.) The number of finished units budgeted for January 2017 was 9,660; 9,600 units were actually produced. (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 96,600 lb., at a total cost of $478,170. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Read the autrement Requirement 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar) Actual input x Budgeted price. Cost Direct materials (purchases) Direct materials (usage) Direct manufacturing labor

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 4P

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< Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, actual variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print The fixed overhead cost variance is The fixed overhead volume variance is $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done because the total fixed overhead cost was because…
Firelight Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. Machine setup-hours is the only driver of manufacturing overhead costs. Firelight has a set up capacity of 780 hours. (Click the icon to view the information.) Calculate the manufacturing overhead costs budget (label it Schedule 5). Schedule 5: Manufacturing Overhead Costs Budget for the Year Ending December 31, 2020 Machine Setup Overhead Costs Total manufacturing overhead costs Data table 1. Quantity of lamps to be produced 2. Number of lamps to be produced per batch 3. Setup time per batch Variable cost = $45 per setup-hour Fixed cost = $70,000 Knox 19,000 lamps 200 lamps/batch 4 hours/batch Ayer 8,000 lamps 100 lamps/batch 5 hours/batch
Prepare a cost of goods sold budget for MacLaren Manufacturing Inc. for the year ended December 31, 2016, from the following estimates. Inventories of production units: Direct materials purchased during the year, 548,000; beginning inventory of direct materials, 36,000; and ending inventory of direct materials, 23,000. Totals from other budgets included:
. Best Around, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2017, budgeted fixed manufacturing overhead cost was $17,000,000. Budgeted variable manufacturing overhead was $10 per machine-hour. The denominator level was 1,000,000 machine-hours. Q. Prepare a graph for fixed manufacturing overhead. The graph should display how Best Around, Inc.’s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.
Horace Company manufactures a professional-grade vacuum cleaner and began operations in 2017. For 2017, Horace budgeted to produce and sell 25,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2017 are given in attatched picture: Q.Prepare a 2017 income statement for Horace Company using absorption costing
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Ma1. Quality Inc. uses a standard cost system and provides the following information. Quality allocates manufacturing overhead to production based on standard direct labor hours. Quality reported the following actual results for 2018: The actual number of units produced is 1,000. The actual variable overhead is $2,500. The actual fixed overhead is $3,500. The actual direct labor hours are 1,200. Data Static budget variable overhead $1,200 Static budget fixed overhead $1,600 Static budget direct labor hour $800 Static budget number of units 400 units. Static direct labor hours 2 hours per unit. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 1)-Variable overhead cost variance = Actual hours x (Actual rate – Standard rate) 2)-Variable overhead efficiency variances = Standard rate x (Actual labor hours – Standard labor*hours for actual production). 3)-Fixed overhead cost variances = Actual fixed overhead – Budgeted fixed overhead…
The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour: (Click the icon to view the standards.) The number of finished units budgeted for January was 9,950; 9,900 units were actually produced. (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 99,500 kg, at a total cost of $527,350. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Required Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Budgeted price 5.10 5.10 31.00 Direct materials Direct manufacturing labour Direct materials (purchases) Direct materials (usage)…
Problems 6-28 Budget schedules for a manufacturer. Logo Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams are as follows: Knights, with red blankets and the Knights logo Raiders, with black blankets and the Raider logo Also, the black blankets are slightly larger than the red blankets. The budgeted direct-cost inputs for each product in 2012 are as follows: Knights Blanket 3 yards Raiders Blanket Red wool fabric Black wool fabric 3.3 yards Knight logo patches Raider logo patches Direct manufacturing labor 1 1 1.5 hours 2 hours Unit data pertaining to the direct materials for March 2012 are as follows: Actual Beginning Direct Materials Inventory (3/1/2012) Knights Blanket 30 yards Raiders Blanket Red wool fabric Black wool fabric 10 yards Knight logo patches Raider logo patches 40 55 Target Ending…
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