Healthfirst (HF) Ltd has recently started to produce a face shield and product's standard cost data are as follows: Cost per unit Direct materials Perspex (0.5 meters @ $15 per meter) $ 7.50 Direct materials Hardened Plastic (0.25 meters at $20.00 per meter) 5.00 Direct manufacturing labour (0.5 hr @ $30.00 per hr) Manufacturing overhead Total Cost 15.00 Required Should HF accept the offer. Show all computations. 30.00 $57.50 Additional information 45% of the Manufacturing overhead changes with the number of units produced. Additionally, if production of face shields is discontinued, 20% of the remaining fixed cost will be avoided. The budgeted production used to compute overheads is 10,000 units per quarter. HF has been approached by another company who is willing to supply the face shields at $50. Per unit. The space used to manufacture face shields can be used to Generate $ 120,000 in contribution margin per quarter.
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- Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1)StandardQuantityor Hours (2)StandardPriceor Rate StandardCost(1) × (2) Direct materials 6 pounds $3 per pound $ 18.00 Direct labor 0.8 hours $15 per hour 12.00 Variable manufacturing overhead 0.8 hours $3 per hour 2.40 Total standard cost per unit $32.40 TotalStandardCost* Variances Reported Priceor Rate Quantity orEfficiency Direct materials $405,000 $6,900 F $9,000 U Direct labor $ 270,000 $14,550 U $21,000 U Variable manufacturing overhead $54,000 $1,300 F $? U *Applied to Work in Process during the period. The company’s manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. Required: How many units were produced last…Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: LOADING... (Click the icon to view the costs.) Direct materials $7.00 Direct labor 2.00 Variable overhead 8.00 Fixed overhead 6.50____________________________ Manufacturing product cost $23.50__________________________ _________________________________ LOADING... (Click the icon to view additional information.) Another company has offered to sell Sensor Systems the switch for $19.00 per unit. If Sensor Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether Sensor Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing…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…
- Fresh Company produces a well-known perfume. The standard manufacturing cost of theperfume is described by the following standard cost sheet:Direct materials:Liquids (5 oz. @ $ 0.25) $1.25Bottles (1 @ RM 0.05) $ 0.05Direct Labor (0.25 @ $13.00) $ 3.25Variable overhead (0.25 @ $ 5) $1.25Fixed overhead (0.25 @ $10.00) $ 2.50Standard cost per unit $ 8.30Management has decided to investigate only those variances that exceed the lesser of 10% ofthe standard cost for each category or $22,000. During the past quarter, a total of 300,000four-ounce bottles of perfume was produced. Descriptions of actual activity for the quarter follow:a. A total of 1.2 million ounces of liquids was purchased, mixed, and processed. The pricepaid per ounce averaged $0.27b. Exactly 280,000 bottles were used. The price paid for each bottle was $ 0.055.c. Direct labor hours totaled 50,000 with a total cost of $ 650,000d. Variable overhead cost totaled $ 242,000e. Fixed overhead cost was $ 600,000Normal production…The cost of materials for product A are as follows. Material W: $2,250 Material X: $3,000 Material Y: $3,600 Material Z: $150 If the material proportions were displayed on a pie chart, how many degrees would material Y represent? A 90 degrees B 120 degrees C 144 degrees D 204 degreesKoontz 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 Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.80 feet at $2.80 per foot $ 5.04 Actual: 1.75 feet at $3.00 per foot $ 5.25 Direct labor: Standard: 0.90 hours at $17.00 per hour 15.30 Actual: 0.95 hours at $16.40 per hour 15.58 Variable overhead: Standard: 0.90 hours at $7.40 per hour 6.66 Actual: 0.95 hours at $7.00 per hour 6.65 Total cost per unit $ 27.00 $ 27.48 Excess of actual cost over standard cost per unit $ 0.48 The production superintendent was pleased when he saw this report and commented: “This $0.48 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious…
- Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1) Standard Quantity or Hours (2)StandardPriceor Rate StandardCost(1) × (2) Direct materials 2.10 pounds $ 16.60 per pound $ 34.86 Direct labor 1.00 hours $ 15.90 per hour $ 15.90 Variable manufacturing overhead 1.00 hours $ 9.10 per hour $ 9.10 Total standard cost per unit $ 59.86 Total Variances Reported StandardCost* Priceor Rate Quantity orEfficiency Direct materials $ 627,480 $ 11,542 F $ 33,200 U Direct labor $ 286,200 $ 3,800 U $ 15,900 U Variable manufacturing overhead $ 163,800 $ 4,800 F $ ?† U *Applied to Work in Process during the period. The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. 4. How…Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1) Standard Quantity or Hours (2)StandardPriceor Rate StandardCost(1) × (2) Direct materials 2.10 pounds $ 16.60 per pound $ 34.86 Direct labor 1.00 hours $ 15.90 per hour $ 15.90 Variable manufacturing overhead 1.00 hours $ 9.10 per hour $ 9.10 Total standard cost per unit $ 59.86 Total Variances Reported StandardCost* Priceor Rate Quantity orEfficiency Direct materials $ 627,480 $ 11,542 F $ 33,200 U Direct labor $ 286,200 $ 3,800 U $ 15,900 U Variable manufacturing overhead $ 163,800 $ 4,800 F $ ?† U *Applied to Work in Process during the period. The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored.…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. Direct materials: Standard: 1.80 feet at $2.20 per foot Actual: 1.75 feet at $2.40 per foot Direct labor: Standard: 0.90 hour at $14.00 per hour Actual: 0.95 hour at $13.40 per hour Variable overhead: Standard: 0.90 hour at $5.00 per hour Actual: 0.95 hour at $4.60 per hour Total cost per unit Excess of actual cost over standard cost per unit Required 1 Standard Cost per Unit $3.96 Required 2 12.60 Required 3 4.50 Complete this question by entering your answers in the tabs below. $ 21.06 1a. Materials price variance 1a. Materials quantity variance 1b. Labor rate variance 1b. Labor efficiency variance 1c. Variable overhead rate variance 1c. Variable overhead efficiency variance The production superintendent was pleased when he saw this report and commented: "This $0.24 excess cost is well within the 5 percent limit management has set for…
- Huron Company produces a commercial cleaning compound known as Zoom. The direct materials anddirect labor standards for one unit of Zoom are given below:Standard Quantity Standard Price Standardor Hours or Rate CostDirect materials ........... 4.6 pounds $2.50 per pound $11.50Direct labor ................. 0.2 hours $12.00 per hour $2.40During the most recent month, the following activity was recorded:a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.b. All of the material purchased was used to produce 4,000 units of Zoom.c. 750 hours of direct labor time were recorded at a total labor cost of $10,425.Required:1. Compute the direct materials price and quantity variances for the month.2. Compute the direct labor rate and efficiency variances for the month.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 Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.90 feet at $4.60 per foot $ 8.74 Actual: 1.85 feet at $5.00 per foot $ 9.25 Direct labor: Standard: 0.95 hours at $19.00 per hour 18.05 Actual: 1.00 hours at $18.50 per hour 18.50 Variable overhead: Standard: 0.95 hours at $7.00 per hour 6.65 Actual: 1.00 hours at $6.60 per hour 6.60 Total cost per unit $ 33.44 $ 34.35 Excess of actual cost over standard cost per unit $ 0.91 The production superintendent was pleased when he saw this report and commented: “This $0.91 excess cost is well within the 4 percent limit management has set for acceptable variances. It's obvious…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 Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.90 feet at $3.00 per foot $ 5.70 Actual: 1.85 feet at $3.40 per foot $ 6.29 Direct labor: Standard: 1.00 hours at $18.00 per hour 18.00 Actual: 1.05 hours at $17.40 per hour 18.27 Variable overhead: Standard: 1.00 hours at $8.00 per hour 8.00 Actual: 1.05 hours at $7.60 per hour 7.98 Total cost per unit $ 31.70 $ 32.54 Excess of actual cost over standard cost per unit $ 0.84 The production superintendent was pleased when he saw this report and commented: “This $0.84 excess cost is well within the 4 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 15,000 units.…