REQUIRED: 1. Determine the materials and labor variances graphically and by formula. 2. Prepare the flexible overhead budget using the format of page 217. the ? way method
Q: Required: Compute the company's activity variances for May. (Hint: Refer to Exhibit 9-6.)
A: In this question, we have to find out activity variance Activity variance is the difference between…
Q: Randall Company uses standard costing and flexible budgeting and is evaluating its direct labor. The…
A:
Q: Why is the flexible-budget variance the same amount as the spending variance for fixed manufacturing…
A: Spending variance:It indicates the amount of actual cost incurred for actual production over the…
Q: Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do…
A: Standard costing is a method of costing where the costs are budgeted to enhance the efficiency of…
Q: Which of the following equations can be used to compute a labor rate variance (where AH = actual…
A: Labor rate variance is the difference of standard rate and actual rate of labor for actual hours…
Q: Derr Company reports the following Compute (a) controllable variance, (b) volume variance, and (c)…
A: Total overhead variance = Actual total overhead - Standard overhead applied
Q: Working With Variances From the following data, determine the total actual costs incurred for direct…
A: Variance analysis: It is the technique in budgeting that allows for analysis of the variances…
Q: Required: 1. Using the columnar approach, calculate the fixed overhead spending and volume…
A: Volume variance = Budgeted fixed overhead variance - (Standard hours * Standard fixed overhead rate)…
Q: A company using direct costing in its performance evaluation would normally include the following…
A: The answer is stated below:
Q: The following information relates to Longman, Inc.'s overhead costs for the month: 1(Click the…
A: The cost variance has occurred when there is a difference between the actual cost incurred and the…
Q: An activity variance is calculated by comparing the: Multiple Choice planning budget to the actual…
A: Activity variance measures the difference between planning budget and the flexible budget.…
Q: xcel—showing all work and formulas—to complete the following: Prepare a flexible budget. Compute…
A:
Q: List the eight product variances and the manager most likely responsible for each.
A: 1) Direct material Quantity variance 2) Direct material price variance 3) Direct Labor efficiency…
Q: The difference between actual factory overhead and budgeted overhead on the basis of standard direct…
A: SOLUTION- EFFICIENCY VARIANCE IS THE DIFFERENCE BETWEEN THE THEORETICAL AMOUNT OF INPUTS REQUIRED…
Q: Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency…
A: Calculation of: Actual Cost Incurred = $53,880 Actual Input Quantity * Budgeted Rate = 1000 units *…
Q: Required information [The following information applies to the questions displayed below.] AirPro…
A: A variance is a difference between a budgeted amount and the actual amount incurred. Variance can be…
Q: Required: 1. Prepare the following variance analyses for both chocolates and the total, based on the…
A: The direct materials price variance for the material is as follows:
Q: Required: 1. Compute the following varlances for June: a. Materials price and quantity variances. b.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Denominator level in hours 40,000 Actual output in units 21,000 Std. Variable overhead rate per…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: segin by selecting the formula you will use. Then, enter the amounts and calculate the rate.…
A: Budgeted manufacturing overhead refers to planned manufacturing overhead costs. These expenses…
Q: Prepare a flexible budget management report indicating the activity variance and revenue and…
A: A flexible budget adjusts to changes in actual revenue levels. Actual revenues or other activity…
Q: company uses predetermined rate for absorption of manufacturing overhead, the volume variance is…
A: Solution: If a company uses predetermined rate for absorption of manufacturing overhead, the volume…
Q: Under the three variance method for analyzing factory overhead, the difference between the actual…
A: Variance represents the variation between the overheads planned by the entity and the overheads it…
Q: a) For direct materials calculate the price and quantity variances for the year. b) For direct…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…
Q: The following information relates to Longman, Inc.'s overhead costs for the month: 1(Click the…
A: Data table : Static budget variable overhead $7,500 Static budget fixed overhead $3,000…
Q: Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do…
A: Solution:- Given, Bargain Inc., produced 1000 units Direct materials was three yards of cloth per…
Q: *Standard labor time per finished product is 12 minutes. The fixed overhead was in agreement with…
A: Note - the first part is being solved. Please post a separate question for the balance parts.…
Q: Required: 1. Complete the standard cost card for each product, showing the standard cost of direct…
A: Step 1 Variances is the difference between Budgeted cost and actual cost of factors of Production.
Q: 1. Determine the materiáls 2. Prepare the flexible overhead budget using the format of page 217. 3.…
A: Answer is for silva plastics
Q: n determining the standard factory overhead rate, which level of capacity is used? Select one:…
A: Variance:-It is a difference between what is set as standard and what is the actual output produced.…
Q: Explain the phrase, "Fixed Overhead Expenditure (or Spending or Budget) Variance: This variance…
A: Solution:- Explaining the concept of Fixed Overhead Expenditure or Spending variance as follows…
Q: Complete the table belovw for the missing variances. E (Click the icon to view the table.) Calculate…
A: Direct labor total cost variance shows the impact of any overall change in the amount spent on…
Q: equired: Compute the materials price and quantity variances for August. 2 Compute the labor rate and…
A: In this ques, we have to compute different variance. Variance is computed as difference between…
Q: Calculate the variances and identify whether the variance is favorable (F) or unfavorable (U).…
A: Variances are calculated by comparing the actual results with the standard set.
Q: From the data below prepare (a) an analysis of factory overhead variances using the two- variance…
A: In the standard costing method, the estimated amounts are used for the effective control of costs,…
Q: Requirement 1. Calculate the standard cost of one awning. Standard cost Direct materials Direct…
A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Prepare the following variance analyses for both chocolates and total, based on the actual results…
A: a.
Q: Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor…
A: Variance analysis: Variance analysis can be defined as the study of the difference between the…
Q: Prepare the journal entry to record these direct materials variances. Direct materials cost actually…
A: Given: Actual Direct materials cost $73,200Direct materials quantity variance $3,800…
Q: Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances.
A:
Q: Bill Wilson, the financial accountant at Robson Ltd is considering implementing a standard costing…
A: Standard Costing - It is the process of estimation of expenses of the production process. It is cost…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Please help me to answer the required 1 of Graphical Approach for Material Variances. I also uploaded the example illustration that was given to me. Thank you so much.
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- Exercise 6-14 Silva Plastics Company has established standard cost for a unit of manufacture product as follows: Materials (3 kgs. @ P9) Labor (1 hour @ P84) Variable overhead (1 hour @ P24) Fixed overhead (1 hour @ P36) P27.00 84.00 24.00 36.00 P171.00 Total standard unit cost At normal operating capacity, 100,000 units of product should be manufactured in a year. Costs data pertaining to the operations for the year are summarized below: Materials purchased (200,000 kgs.) Materials used in production P1,908,000 185,000 kgs. Labor hours 58,000 Labor rate P90.00 per hour Factory overhead- Variable P1,380,000 Fixed P3,600,000 During the year, 60,000 units of product were put into production and were completed. There were no units in process at the beginning or at the end of the year. There are also no inventories of raw materials or finished goods at the beginning of the year. REQUIRED: 1. Determine the materials and labor variances graphically and by formula. 2. Prepare the flexible…Exercise 6-14 Silva Plastics Company has established standard cost for a unit of manufactured product as follows: Materials (3 kgs. @ P9) Labor (1 hour @ P84) Variable overhead (1 hour @ P24) P27.00 84.00 24.00 Fixed overhead (1 hour @ P36) Total standard unit cost 36.00 P171.00 At normal operating capacity, 100,000 units of product should be manufactured in a year. Costs data pertaining to the operations for the year are summarized below: Materials purchased (200,000 kgs.) Materials used in production P1,908,000 185,000 kgs. Labor hours Labor rate P90.00 per hour Factory overhead- Variable P1,380,000 P3,600,000 Fixed During the year, 60,000 units of product were put into production and were completed. There were no units in process at the beginnìng or at the end of the year. There are also no inventories of raw materials or finished goods at the beginning of the year. REQUIRED: 1. Determine the materials and labor variances graphically and by formula. 2. Prepare the flexible overhead…problem 5 Marites Company employs standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials – P14.50; Direct Labor for 2 hours @ P8/hr is P16; Manufacturing overhead for 2 hours @ P11/hr is P22. The total cost/unit (14.50+16+22) = P52.50. The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct labor hours. The company planned to produce 25,000 units each month during 2020. Budgeted factory overhead for 2020 is composed of P3,600,000 variable and P3,000,000 fixed. During April 2021, 26,000 units of product were produced using 53,500 direct labor hours at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during April was P572,000. The variable overhead spending variance must be:
- Question 6: Your company currently produces a range of three products, D, E, and F to which the following details relate for Period 2. D E F Production (units) 1,500 2,500 14,000 Material cost per unit Br. 18 Br. 10 Br. 20 Labor hours per unit 1 3 2 Machine hours per unit 3 2 6 Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows: Set-up cost 327,250 Handling cost 187,000 Machine cost 140,250 Inspection cost 280,500 935,000 Calculate the cost per unit for each product using conventional The introduction of an ABC is being considered and to that end the following volume…Ch. 10-Dell, Inc. makes a product with the following standard costs: Direct materials Direct labor Variable overhead 4.00per ounce 11.00per hour 4.00per hour The company reported the following results concerning this product in June. Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Standard Quantity or Hours Standard Price or Rate 7.1ounces 0.2hours 0.2hours D) $440 F C) $660 U A) $440 U $ $ $ B) $660 F Standard Cost Per Unit 3000units 21,500ounces 21,500ounces 560hours S $ The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for June is: S 28.40 2.20 0.80Question No. 1-2 The estimated costs of producing 6,000 units of a component are: Per Unit Direct Material $10 Direct Labor 8 Applied Variable Factory Overhead 9 Applied Fixed Factory Overhead $1.5 per direct labor dollar The same component can be purchased from market at a price of $29 per unit. If the component is purchased from market, 25% of the fixed factory overhead will be saved. 12 Required: a. Should the component be purchased from the market? b. Being a production manager, provide your iogicai opinion on choosing between purchasing the component from market or producing in-house
- Chhom Incorporated, manufactures and cells two products Product F and Product U4 Data concerning the expected production of each product and the expected total direct labor hours (DLH required to produce that output appear below Product F9 Product 04 Total direct labor-hoursi Expected Direct Labor-Hours Total Direct Production 300 600 Activity Cost Pools Labor-related Production orders order size Per Unit 4.0 2.0 The direct labor rate is $25.90 per DLH The direct materials cost per unit is $285 for Product F9 and $244 for Product 4 The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity Activity Measures DLHS orders MHS Estimated Overhead Cost Product $ 42,600 67,630 137,820 $ 248,050 Labor-Hours 1,200 1,200 2,400 1,200 400 3,300 Expected Activity Product U 1,200 GOO 3,100 Total 2,400 1,000 4,400QUESTION 2 Wonder Woman Sdn Bhd manufactures two products, the X and the Y, which have the following standard selling price and standard costs per unit. X Y RM RM Standard Selling Price Direct Materials 120 128 32 26 Direct Labour 40 50 Variables Production Overhead 20 16 Variable Selling Overhead 16 27 A production line can be set up to produce either produce either product X or product Y. The following table gives the breakdown for each product. Labour (minutes) Material (kg) Testing (minutes) Product X 30 2 3 Y 15 4 4 In any one week the availability of resources are expected to be subjects to the following limitations: Direct Labour (minutes) Direct Materials 1800 minutes | 280 kg The production department stated that the testing equipment must be used for at least 240 minutes. Also, because of existing orders, at least 20 units of product X must be produced. Required: Determine by graphical means the optimal mix of X and Y at Wonder Woman Sdn Bhd. (Calculate the exact values of X…QUESTION 6 Your company currently produces a range of three products, D, E and F to which the following details relate for Period 2. Production (units) Material cost per unit Labour hours per unit Machine hours per unit D 1,500 RM 18 Set-up costs Handling costs Machining costs Inspection costs 1 3 Labour costs are RM 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analysed as follows: RM 327,250 187,000 140,250 280,500 935,000 E 2,500 RM 10 3 2 D 90 16 180 F 14,000 RM 20 2 6 (a) Calculate the cost per unit for each product using conventional methods. The introduction of an ABC is being considered and to that end the following volume of activities have been identified with the current output levels. E 138 28 216 F 576 116 804 Number of set-ups Number of material issues Number of inspections (b) Calculate the cost per unit for each product using the ABC approach. (c)…
- Figure 11-1Ubben Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows:Model X Model YUnits produced 20,000 40,000Machine hours 8,000 10,000Direct labour hours 14,000 16,000Engineering labour (hours) 1,000 1,400Setups 40 60The following costs are reported:Engineering £ 48,000Setups 100,000Machine-related overhead 144,000 Refer to Figure 11-1. Setups would be classified as a A. unit-level activity.B. facility-level activity.C. batch-level activity.D. total-level activity.Exercise 6-50 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-1, 2, 3) Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: Revenue Direct material Direct labor Overhead: Material handling overhead Fabrication overhead Plastic $ 560,000 260,000 140,000 a. Material handling predetermined rate b. Fabrication predetermined rate Leather $ 580,000 340,000 120,000 c. Total overhead (Plastic) d. Total overhead (Leather) Total $ 1,140,000 Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-…13 The following standard cost card is provided for Navid Company's Product A: Direct material (3 lbs. @ $3.00 per lb.) Direct labor (2 hr @ $6.00 per hr.) Variable overhead (1 hr. @ $4.00 per hr.) Fixed overhead (1 hr. @ $3.00 per hr.) Total standard cost per unit Multiple Choice $21.74. $33.74. $9.00 The fixed overhead rate is based on total budgeted fixed overhead of $10,000. During the period, the company produced a Direct material 10,200 pounds @ $2.50 per pound Direct labor 5,150 hours @ $12.00 per hour Overhead $30,100 The standard manufacturing cost per unit is $28.00. What is the actual manufacturing cost per unit? (Do not round interme $18.41. 12.00 4.00 3.00 $28.00 Cannot be determined from the information provided.