4. ADM Milling manufactures flours and sold to bakeries and other supermarkets. ADM Milling prepares flexible...
Fantastic news! We've Found the answer you've been seeking!
Question:
![](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2022/04/6253c35041697_6566253c3500ed68.jpg)
Transcribed Image Text:
4. ADM Milling manufactures flours and sold to bakeries and other supermarkets. ADM Milling prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a bag of 45KG Bebe Agua is based on static budget volume of 65,000 bags of 45KG Bebe Agua per month: Direct Materials (.3 @ $0.40 per lb.) Direct Labor (5 mins. @ S0.20 per min.) Manufacturing Overhead: Variable (5 mins. @ $0.10 per min.) Fixed (5 mins. @ S0.20 per min.) Total cost per unit .12 1.00 .50 1.00 1.50 $2.62 Actual cost and production information for December 2021 follows: a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 70,000 bags of 45KG Bebe Agua c. Actual direct materials usage was 20,000 lbs. at an actual cost of S0.26 per lb. d. Actual direct labor usage was 210,000 minutes at a total cost of $39,500 e. Actual overhead cost was $9,000 variable and $35,000 fixed. f. Selling and administrative costs were $125,000 Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. (8 Points) Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (10 Points) 2. 4. ADM Milling manufactures flours and sold to bakeries and other supermarkets. ADM Milling prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a bag of 45KG Bebe Agua is based on static budget volume of 65,000 bags of 45KG Bebe Agua per month: Direct Materials (.3 @ $0.40 per lb.) Direct Labor (5 mins. @ S0.20 per min.) Manufacturing Overhead: Variable (5 mins. @ $0.10 per min.) Fixed (5 mins. @ S0.20 per min.) Total cost per unit .12 1.00 .50 1.00 1.50 $2.62 Actual cost and production information for December 2021 follows: a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 70,000 bags of 45KG Bebe Agua c. Actual direct materials usage was 20,000 lbs. at an actual cost of S0.26 per lb. d. Actual direct labor usage was 210,000 minutes at a total cost of $39,500 e. Actual overhead cost was $9,000 variable and $35,000 fixed. f. Selling and administrative costs were $125,000 Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. (8 Points) Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (10 Points) 2.
Expert Answer:
Answer rating: 100% (QA)
1 Direct materials price variance 2800 F 400 F 2500 F 28000 F Direct materials efficiency variance D... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Redtop Co. uses a standard cost system and flexible budgets. The following flexible budget was prepared at the 80% operating level for the year: Standard direct labor hours (DLHs) 28,800 Budgeted...
-
Milling prepares flexible budgets and uses a standard cost system to control manufacturing costs. The is based on static budget volume of 65,000 bags Milling manufactures flours and sold to bakeries...
-
The Multi-Tool Manufacturing Company uses a standard cost system. Stephanie Roget, a financial analyst for Multi-Tool Manufacturing Company, has been given information with respect to standard cost...
-
Redo Exercise 29 for the situation in which Ms. Jones withdrew $1000 at the end of the seventh year instead of depositing it. Data in Exercise 29 Ms. Jones deposited $100 at the end of each month for...
-
After the developing-country debt crisis began in 1982 (see the next chapter), U.S. bank regulators imposed tighter supervisory restrictions on the lending policies of American banks and their...
-
In your own words, explain why EDLP(M) pricing diminishes forward buying and diverting. Can EDLP(M) be challenging to implement?
-
Journal entries for overhead Yalova Manufacturing Company produces lamp bases using a job order costing system. During 1993, the company completed 32,000 units of product and incurred the following...
-
Sisters Restaurant purchases cheesecakes and offers them as dessert items on its menu. The cheesecakes cost $24 each, and a cake contains 8 pieces. The supplier recently gave notice that the price...
-
Question 1 1 Which of the following statements related to the costs of an eligible relocation is correct? Not yet answered Select one: Marked out of a . The costs of selling a residence where the...
-
The Income Statement and Balance Sheet consistently tell a financial story. That story has many chapters and can change dramatically based upon macroeconomic conditions. Locate the Form 10-K of a...
-
3. Which one of the following reactions only occurs during gluconeogenesis (i.e., not during glycolysis)? a. 1,3-bisphosphglycerate into 3-phosphoglycerate b. Glucose 6-phosphate into fructose...
-
Q.4 Two independent samples of sizes 9 and 8 gave the sum squares of derivations from their respective means as 160 and 91 regarded as espectively. Can the samples be drawn from the normal...
-
9.5 The following figures show the show the distribution of digits in numbers chosen at random from a telephone directory.
-
An insulated steam pipe passes through a room in which the air and walls are at 30C. The outside diameter of the pipe is 70 mm, and its surface temperature and emissivity are 100C and 0.8,...
-
Answer the Following Question Obtain the forces in members 1 to 10 of the truss system given below in terms of P. State whether they are in tension or compression. Give your answers as S1,S2... S10....
-
Answer the following Questions Question 1 "The increased consumption of leafy vegetables in the recent months is a clear indication that the people in the state have begun to lead a healthy...
-
can you provide an example of promissory estoppel in action
-
Dawson Companys balance sheet information at the end of 2019 and 2020 is as follows: Additional information: The company did not issue any common stock during 2020. Required : Next Level Fill in the...
-
Describe the fundamental cost flow assumptions of the average cost, fifo, and lifo inventory costing methods.
-
Describe the difference between direct costing and absorption costing.
-
In a standard cost system, the computation of variances is a first step. What steps should follow?
-
Compute margin of safety (Learning Objective 5) Consider Kay's e-tail poster business. Suppose Kay expects to sell 800 posters. Use the original data ( \(\$ 35\) sales price, \(\$ 21\) variable cost,...
-
Continuation of S7-9 : breakeven (Learning Objective 4)} Refer to your answer to \(57-9\). a. Compute the total number of dinner cruises that Bay Cruiseline must sell to break even. b. Compute the...
-
Work backward to find missing information (Learning Objectives 1, 2) Berg Drycleaners has determined the following about their costs: total variable expenses are \(\$ 40,000\), total fixed expenses...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App