Top Notch Music Inc. produces car stereos. During the year, Top Notch Music produced 9,900 stereos....

Transcribed Image Text:

Top Notch Music Inc. produces car stereos. During the year, Top Notch Music produced 9,900 stereos. Materials and labor standards for producing these units are as follows: Direct materials (5 electronic component kit @ $190.00) $950.00 Direct materials (5 plastic casing @ $35.00) 175.00 Direct labor (6 hours @ $16.00) Required: 96.00 A. Compute the standard hours allowed for a volume of 9,900 stereos and the planned cost. Standards hours 59,400 Planned cost $ 950,400 B. Compute the standard number of kits and casings allowed for a value of 9,900 units and the planned cost for each direct material. Standard Quantity Electronic kits 49,500 Plastic casings 49,500 Planned Cost 9,405,000 1,732,500 C. Compute the total budget variances for materials and labor assuming that the actual number of electronic kits purchased and used was 6,600 at a price of $156.00 and actual plastic casings purchased were 14,000 at a price of $32.00. Actual labor was 59,000 hours at $11.25 per hour. Materials (electronic component kits) Materials (plastic casings) Labor t Variance 6A 2:28 PM Top Notch Music Inc. produces car stereos. During the year, Top Notch Music produced 9,900 stereos. Materials and labor standards for producing these units are as follows: Direct materials (5 electronic component kit @ $190.00) $950.00 Direct materials (5 plastic casing @ $35.00) 175.00 Direct labor (6 hours @ $16.00) Required: 96.00 A. Compute the standard hours allowed for a volume of 9,900 stereos and the planned cost. Standards hours 59,400 Planned cost $ 950,400 B. Compute the standard number of kits and casings allowed for a value of 9,900 units and the planned cost for each direct material. Standard Quantity Electronic kits 49,500 Plastic casings 49,500 Planned Cost 9,405,000 1,732,500 C. Compute the total budget variances for materials and labor assuming that the actual number of electronic kits purchased and used was 6,600 at a price of $156.00 and actual plastic casings purchased were 14,000 at a price of $32.00. Actual labor was 59,000 hours at $11.25 per hour. Materials (electronic component kits) Materials (plastic casings) Labor t Variance 6A 2:28 PM