Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 Exercise 9-5 (Algo) Direct Labor Variances [LO9-5) 25 points SkyChefs, Incorporated, prepares in-flight meals for a number of major airtines. One of the company's

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
4 Exercise 9-5 (Algo) Direct Labor Variances [LO9-5) 25 points SkyChefs, Incorporated, prepares in-flight meals for a number of major airtines. One of the company's products is grilled salmon in in sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 5.600 of these meals using 2.700 direct labor-hours. The company paid its direct labor workers a total of $21600 for this work, or $8.00 per hout According to the standard cost card for this meat, it should require 050 direct labor-hours at a cost or $7.50 per hour Required: 1. What is the standard labor-hours allowed (SH) to prepare 5,600 meals? 2. What is the standard labor cost allowed (SHSR) to prepare 5,600 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor emciency variance? Book Hint Print (For requirements 3 and 4, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance), Input all amounts as positive values. Do not round Intermediate calculations.) References 1 Standard labor-hours allowed 2. Standard labor cost allowed 3. Labor spending variance 4. Labor rate variance 4. Labor efficiency variance 5 07 Exercise 9.6 (Algo) Variable Overhead Variances (LO9-6) 25 points eBook Hint Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items camed by its dot com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. in the most recent month.120,000 items were shipped to customers using 4,100 direct labor-hours. The company incurred a total of $11.480 in variable overhead costs According to the company's standards, 0.03 direct labor hours are required to fulfill an order for one item and the variable overhead rate is $285 per direct labor-hour Required: 1. What is the standard labor-hours allowed (SH) to ship 120,000 items to customers? 2 What is the standard variable overhead cost allowed (SHSR) to ship 120,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance? (For requirements 3 and 4, Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero variance). Input all amounts as positive values. Do not round Intermediate calculations.) Print References 1. Standard quantity of labor-hours allowed 2. Standard variable overhead cost allowed 3. Variable overhead spending variance 4. Variable overhead rate variance 4. Variable overhead efficiency variance 6 Problem 9-21 (Algo) Multiple Products, Materials, and Processes (L09-4, LO9-5) 25 OOO Mickey Corporation produces two products. Alphabs and Zetals, which pass through two operations, Sintoring and Finishing Each of the products uses two raw materials-X442 and Y661. The company uses a standard cost system with the following standards for each product on a per unit basis Standards Pract 2 Sintering Finishing Ah 2. Sito 25 Lt 0.40 hours 1.20 hours Zeta 4,5 l 1.5 liters e. Tours 0.10 hours Information relating to materials purchased and materials used in production during May follows PN Material Purchases cant Standard Price en Product X2 15,400 il $46,200 $ 2.0 per il e kitos 7661 16.00 liters $ 27,0 $10 per liter 14,00 Liter The following additional information is available #1 Dances a. The company recognize price variances when materials are purchased D. The standard labor rate is $2100 per hour in Sintering and $20.00 per hour in Finishing During May. 1.350 direct labor-hours were worked in Sintering at a tota labor cost of $33,216.and 2.990 direct labor-hours were worked in Finishing at a total labor cost of $65.780. d Production during May was 2.000 Alphabs and 1.200 Zetas Required: 1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor 2. Compute the material price and quantity variances for each material 3. Compute the labor rate and efficiency variances for each operation Complete this question by entering your answers in the tabs below. Required Required 2 Required Complete the standard cont card for each product showing the standard cost of direct materials and direct labor. (Round your wers to 2 decimal places) Standard Quantity or Hours Standard Price or Rate Standard Cost Milos ters perilo Der er per hour hours hours pet hour 5 0.00 Alpha Dere materiais-X442 Direct materials-Y001 Drect labor-Sing Direct labor-Finishing Total Zat Direct materialX442 Direct materials Drect labor-Sintering Direct labor-Finishing Total los per il per le per hour per hour hours hours $ 0.00 Required 2 > 6 25 Problem 9-21 (Algo) Multiple Products, Materials, and Processes (L09-4, LO9-5) Mickley Corporation produces two products, Alpha and Zeto7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials-X442 and Y661 The company uses a standard cost system, with the following standards for each product on a per unit basis) Standard Labor Time Product 1442 7661 Sintering FESTIE Alpha 2.5 kilos 2.5 liters 0.40 hours 1.20 hours Tetat 4.5 kilos 5.5 liters 0.40 hours 0.0 hours Information relating to materials purchased and materials used in production during May follows: . Cost Purchase material Purchases Standard Price 15,400 kilos $ 40,200 $ 2.00 per kilo 7661 16,400 liters $ 27,000 $ 1.00 per liter The following additional information is available used in Production 9,90 kilos 14,400 liters Roces a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $2100 per hour in Sintering and $2000 per hour in Finishing c During Moy. 1.350 direct labor-hours were worked in Sintering at a total labor cost of $33.210, and 2.990 direct lobor hours were worked in Finishing at a total labor cost of $65.780. d. Production during May was 2000 Alphos and 1,200 Zeto? Required: 1 Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor 2 Compute the materials price and quantity variances for each material 3. Compute the labor rate and efficiency variances for each operation Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Compute the materials price and quantity variances for each material. Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and None" for no effect is zero vanance). Input all amounts as positive values.) Direct Materiat Variances-MaterialX442 Material price variance Materiais quantity variance Direct Material Variances-Material Y661 Materials price variance Materials quantity variance 6 Problem 9-21 (Algo) Multiple Products, Materials, and Processes (L09.4, LO9-5] 25 DO Mickley Corporation produces two products, Alphabs and Zeta7s, which pass through two operations. Sintering and Finishing Each of the products uses two raw materials-X442 and Y661 The company uses a standard cost system with the following standards for each product on a per unit basis) Standard Laberine Product 7661 Sintering Finishing Alpha 2.5 kilos 2.5 liters 0.40 hours 1.20 hours Zeta 4.5 los 5.5 liters 0.40 hours 2.0 hours Information relating to materials purchased and materials used in production during May follows: Purchase Material Purchases Cost Standard price used in production 15,400 les 546200 $ 2.00 per kilo 9.900 kilos 7661 15.0 liters $ 27,00 $ 1.te per liter 14,400 liters The following additional information is available Pent Materace The company recognizes price variances when materials are purchased b. The standard labor rate is $2100 per hour in Sintering and $20.00 per hour in Finishing c. During May, 1350 direct labor-hours were worked in Sintering at a total labor cost of $33.210 and 2.990 direct labor-hours were worked in Finishing at a total labor cost of $65,780 d. Production during May was 2000 Alphos and 1.200 Zeta7s Required: 1 Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor 2. Compute the materials price and quantity variances for each material 3. Compute the labor rate and efficiency variances for each operation Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the labor rate and efficiency variances for each operation. (Indicate the effect of each variance by selecting for favorable. "Ufor unfavorable, and "Nonefor no effect ( zero variance) Input all amounts as positive values.) Direct Labor Variances-Sintering Laborrate variance Labor efficiency variance Direct Labor Variances Finishing Laborrate variance Laboreiciency variance

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

Accounting An Introduction

Authors: Atrill Peter, Eddie McLaney

6th Edition

0273771833, 978-0273771838

More Books

Students also viewed these Accounting questions