Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. In producing product AA, 6,300 pounds of direct materials were used at a cost of $1.10 per pound. The standard was 6,000 pounds at

image text in transcribed
1. In producing product AA, 6,300 pounds of direct materials were used at a cost of $1.10 per pound. The standard was 6,000 pounds at $1,00 per pound. The direct materials quantity variance is: 2. Polar Vortex Corporation experienced the following variances: materials price $250F, materials quantity $1,100F, labor price $700U, labor quantity $300F, and overhead $800F. Sales revenue was $102,700, and cost of goods sold (at standard) was $61,900. Determine the actual gross profit. 3. Labor data for making one gallon of finished product in Asaki Company are as follows: (1) Price-hourly wage rate $12.00, payroll taxes $0.80, and fringe benefits $1.20. (2) Quantity-actual production time 1.2 hours, rest periods and clean up 0.25 hours, and setup and downtime 0.15 hours. Compute the following. (a) Standard direct labor rate per hour. (b) Standard direct labor hours per gallon. (c) Standard labor cost per gallon. 4. Neville Company's standard materials cost per unit of output is 510 (2 pounds $5). During July, the company purchases and uses 3,200 pounds of materials costing $16,160 in making 1,500 units of finished product. Compute the total, price, and quantity materials variances. 5. In October, Keane Company reports 21,000 actual direct labor hours, and it incurs $115,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,000 hours. The predetermined overhead rate is $6 per direct labor hour. Compute the total overhead variance. 6. Lovitz Company is planning to produce 2,000 units of product in 2010. Each unit requires 3 pounds of materials at $6 per pound and a half hour of labor at 514 per hour. The overhead rate is 70% of direct labor. Instructions (a) Compute the budgeted amounts for 2010 for direct materials

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multicriteria Decision Making Systems Modeling Risk Assessment And Financial Analysis For Technical Projects

Authors: Timothy Havranek, Doug MacNair, James Wolf

3110765640, 978-3110765649

More Books

Students also viewed these Accounting questions

Question

What is group replacement? Explain with an example. (2-3 lines)

Answered: 1 week ago

Question

Explain the importance of nonverbal messages.

Answered: 1 week ago

Question

Describe the advantages of effective listening.

Answered: 1 week ago

Question

Prepare an employment application.

Answered: 1 week ago