Standard costs: Standard costs are predetermined cost of producing a product & rendering a service. In other words we can say that costs which are determined before production of products & rendering a service are known as standard costs. These costs are determined on the basis of proper analysis and past records of costs. (1) Standard cost per unit (2) Total budgeted cost of production in August (3) Total cost variance for August

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Answer 1

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 8, Problem 7E

To determine

Concept introduction:

Standard costs:

Standard costs are predetermined cost of producing a product & rendering a service. In other words we can say that costs which are determined before production of products & rendering a service are known as standard costs. These costs are determined on the basis of proper analysis and past records of costs.

(1) Standard cost per unit

(2) Total budgeted cost of production in August

(3) Total cost variance for August

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Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output 8.5 ounces 0.6 hours 0.6 hours. Inputs Direct materials Direct labor Variable manufacturing overhead The company has reported the following actual results for the product for April: 6,100 units 55,050 ounces Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost $ 303,010 51,860 ounces 3,360 hours Standard Price or Rate $6.60 per ounce $24.80 per hour $ 4.90 per hour $ 86,810 $ 15,717 Required: a. Compute the materials price variance for April. b. Compute the materials quantity variance for April. c. Compute the labor rate variance for April. d. Compute the labor efficiency variance for April. e. Compute the…

Problem 10-45 Variances; Journal Entries; Missing Data (Appendix) (LO 10-3, 10-6, 10-9) Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $93.00 per raft. This includes 8 kilograms of direct material at a standard cost of $6.00 per kilogram, and 5 hours of direct labor at $9.00 per hour. The following data pertain to November: • Work-in-process inventory on November 1: none. • Work-in-process inventory on November 30: 880 units (75 percent complete as to labor; material is issued at the beginning of processing). • Units completed: 6,600 units. • Purchases of materials: 51,000 kilograms for $303,450. • Total actual labor costs: $327,520. • Actual hours of labor: 35,600 hours. • Direct-material quantity variance: $2,400 unfavorable. Book Print Чеrences Required: 1. Compute the following amounts. a. Direct-labor rate variance for November. b. Direct-labor efficiency variance for November. C. Actual kilograms of material used in…

Answer 2

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 8, Problem 7E

To determine

Concept introduction:

Standard costs:

Standard costs are predetermined cost of producing a product & rendering a service. In other words we can say that costs which are determined before production of products & rendering a service are known as standard costs. These costs are determined on the basis of proper analysis and past records of costs.

(1) Standard cost per unit

(2) Total budgeted cost of production in August

(3) Total cost variance for August

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 8, Problem 7E

To determine

Concept introduction:

Standard costs:

Standard costs are predetermined cost of producing a product & rendering a service. In other words we can say that costs which are determined before production of products & rendering a service are known as standard costs. These costs are determined on the basis of proper analysis and past records of costs.

(1) Standard cost per unit

(2) Total budgeted cost of production in August

(3) Total cost variance for August

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 8, Problem 7E

To determine