Hokey Pokey Pte Ltd (HPPL) produces baseball bats, and adopts a standard costing system for control...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hokey Pokey Pte Ltd (HPPL) produces baseball bats, and adopts a standard costing system for control purposes. The following standard cost has been developed: Direct materials Direct labour Variable overhead Total Standard Quantity or Hours ? metre 2 hours ? hours Standard Price or Standard Cost Per Unit (S) Rate (S) $3.00 per m ? per hour $1.30 per hour Accounts payable - Direct Materials (60.000m purchased) Wages payable (? Hours) Work in process - Direct Materials Labour rate variance The company produced and sold 8.000 baseball bats for the year just completed and selected cost information is shown as follows: Variable overhead efficiency variance *: being actual labour costs incurred during the year There is the following additional information: (i) DR ? $27.00 $? ? $115.200 $650 CR $174.000 $79,200* $3.300 Total materials purchased during the year totalled 60,000. There was no opening balance of materials for the year. Actual direct materials used exceeded the standard by 0.2 metre per stick. (iii) Variable overhead rate is applied based on direct labour-hours. Actual variable overhead cost incurred for the year was $19.800. Required: (a) Compute ALL the possible variances for the year based on the information given. (b) Illustrate the journal entries to record ALL variances for materials, labour and variable overheads (narrations are not required). (c) State possible causes of each variance identified in part (b). Hokey Pokey Pte Ltd (HPPL) produces baseball bats, and adopts a standard costing system for control purposes. The following standard cost has been developed: Direct materials Direct labour Variable overhead Total Standard Quantity or Hours ? metre 2 hours ? hours Standard Price or Standard Cost Per Unit (S) Rate (S) $3.00 per m ? per hour $1.30 per hour Accounts payable - Direct Materials (60.000m purchased) Wages payable (? Hours) Work in process - Direct Materials Labour rate variance The company produced and sold 8.000 baseball bats for the year just completed and selected cost information is shown as follows: Variable overhead efficiency variance *: being actual labour costs incurred during the year There is the following additional information: (i) DR ? $27.00 $? ? $115.200 $650 CR $174.000 $79,200* $3.300 Total materials purchased during the year totalled 60,000. There was no opening balance of materials for the year. Actual direct materials used exceeded the standard by 0.2 metre per stick. (iii) Variable overhead rate is applied based on direct labour-hours. Actual variable overhead cost incurred for the year was $19.800. Required: (a) Compute ALL the possible variances for the year based on the information given. (b) Illustrate the journal entries to record ALL variances for materials, labour and variable overheads (narrations are not required). (c) State possible causes of each variance identified in part (b).
Expert Answer:
Answer rating: 100% (QA)
a Compute ALL the possible variances for the year based on the information given i Material Price Variance Standard price per meter Actual price per m... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
As part of its cost control program, Tracer Company uses a standard costing system for all manufactured items. The standard cost for each item is established at the beginning of the fiscal year, and...
-
The Sussiny Corporation uses a standard costing system in its process cost facility, which manufactures a product called Wikum. Material A is added at the beginning of the process and Material B is...
-
A transistor operates with 100mA and 102mA for collector and emitter currents, respectively. Determine beta, PDC- (4 Marks)
-
The annual membership fee at your health club is $750 a year and is expected to increase at 5% per year. A life membership is $7,500 and the discount rate is 12%. You either pay the annual membership...
-
Compute a 99% tolerance interval on the brightness of the television tubes in Exercise 8-24 that has confidence level 95%. Compare the length of the prediction interval with the length of the 99% CI...
-
The following reactivity order has been found for the saponification of alkyl acetates by aqueous NaOH. Explain. CH3CO2CH3 > CH3CO2CH2CH3 > CH3CO2CH (CH3)2 > CH3CO2C (CH3)3
-
What are the advantages and disadvantages of continuous improvement performance reports? Why do you think some companies adopt this philosophy, but others do not?
-
Lander Parts, Inc., produces various automobile parts. In one plant, Lander has a manufacturing cell with the theoretical capability to produce 450,000 fuel pumps per quarter. The conversion cost per...
-
A house is purchased with $500,000 as a down payment, and payments of $15,000 are made at the end of each month for 15 years. The interest rate is 6% compounded semi-annually. What is the cash value...
-
George S. Avery signed a letter regarding the unpaid balance on a $20,000 promissory note owed to Jim Whitworth in the form of a letter addressed to Whitworth stating: This is your note for...
-
Express (1 + i) in the form of a + ib. Express the following in the form of a + ib c. Express e in the form of a + ib d. Evaluate cos-2 Q2: a. Show that the real part u and the imaginary part v of z...
-
Your company has forecasted 400 units of product 'A' 1 Expected material usage for product 'A' is 1 foot of material per unit 2 Expected material price for each unit of product 'A' is $5 per foot 3...
-
Given the following demand and supply curves, find the equilibrium price and quantity, elasticity of demand and elasticity of supply at the equilibrium point. Demand curve Q = 3 0 0 - P Supply curve...
-
Jinghua hiked 4 1 2 miles through The woods in 2 1 4 hours. She hiked the return Trip at the same average rate buT, by a different route, taking 2 1 2 hours. How many miles did Jingnua nike on the...
-
Why is the concept of time value of money important in the corporate context? Justify your answer. A complete post includes an explanation supported by examples and a minimum of 2 research sources....
-
charles bought a table for $ 6 5 and sold it for $ 8 4 . 5 0 . what was his percentage of profit?
-
Simple variance is calculated by determining: A. Revenue after operating expenses are subtracted B. The differences between the budget projection and the actual results C. Actual gross revenue...
-
Consider the combustion of methanol below. If 64 grams of methanol reacts with 160 grams of oxygen, what is the CHANGE in volume at STP. 2CH3OH(g) + 3O2(g) 2CO2(g) + 4H2O(1) The volume decreases by...
-
What are the consequences of maintaining inadequate inventory levels? What are the difficulties of measuring precisely the costs associated with under stocking?
-
If a company uses actual absorption process costing, what attribute of the cost accounting system is described by each of the three terms-actual, absorption, and process?
-
Stanislov Corporation manufactures a product in three departments. The product is cut out of sheet metal in the Cutting Department, then transferred to the Forming Department where it is bent to...
-
Would the directed spanning tree algorithm also find an undirected spanning tree if the given graph was connected and undirected? Explain.
-
Because of the continuity assumption, it is impossible to prepare meaningful financial statements for a bankrupt company.
-
The unit-of-measure assumption states that it is meaningful to express the affairs of an enterprise in currency units.
Study smarter with the SolutionInn App