Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared usi an elaborate distilling process. The company has developed

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared usi an elaborate distilling process. The company has developed standard costs for one ynit of Fludex, as follows: During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 11,000 ounces at a cost of $237,600. b. There was no beginning inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory. c. The company employs 18 lab technicians to work on the production of Fludex. During November, they each worked an average 190 hours at an average pay rate of $10.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one ynit of Fludex, as follows: During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 11,000 ounces at a cost of $237,600. b. There was no beginhing inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory. c. The company employs 18 lab technicians to work on the production of Fludex. During November, they each worked an average of 190 hours at an average pay rate of $10.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long term purchase controct. Would you recommend that the company sign the contract? 2. For direct tabor: a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. For direct iabor, compute the rate and efficiency variances, (Indicate the effect of esch variance by selecting "F" for favorable, "U" for unfavorabie, and "None" for no effect (Le, zero variance). Input all amounts as positive values.) Becton Labs, incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distiling process. The company has developed standard costs for one unit of Fludex, as follows: During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 11,000 ounces at a cost of $237,600 b. There was no beginning inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory. c. The company employs 18 lab technicians to work on the production of Fludex. Duting November, they each worked an average of 190 hours at an average pay rate of $10.50 per hour. a. Variable manufacturing overhead is assigned to Fludex on the basis of direct iabor-hours. Varioble manufacturing overhead costs during November totaied $6,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorabie, "U" for unfavorabte, and "Nond" for no effect (h.e, zero variance), input all ambunts as positive values. Huron Company produces a commercial cleaning compound known as Zoom. The ditect materials and direct labor standards for one unit of Zoom are given below: During the most recent month, the following activity was recorded. a. 22,900.00 pounds of material were purchased at a cost of $2.70 per pound. b. All of the moterial purchased was used to produce 3,000 units of Z00m. c. 1,400 hours of direct labor time were recorded at a total laber cost of \$18,200. Required: 1 Compute the materials peice and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance), Input all amounts as positive values. Round your intermediate calculations to the nearest whele dollar.) Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared usi an elaborate distilling process. The company has developed standard costs for one ynit of Fludex, as follows: During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 11,000 ounces at a cost of $237,600. b. There was no beginning inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory. c. The company employs 18 lab technicians to work on the production of Fludex. During November, they each worked an average 190 hours at an average pay rate of $10.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one ynit of Fludex, as follows: During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 11,000 ounces at a cost of $237,600. b. There was no beginhing inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory. c. The company employs 18 lab technicians to work on the production of Fludex. During November, they each worked an average of 190 hours at an average pay rate of $10.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long term purchase controct. Would you recommend that the company sign the contract? 2. For direct tabor: a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. For direct iabor, compute the rate and efficiency variances, (Indicate the effect of esch variance by selecting "F" for favorable, "U" for unfavorabie, and "None" for no effect (Le, zero variance). Input all amounts as positive values.) Becton Labs, incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distiling process. The company has developed standard costs for one unit of Fludex, as follows: During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 11,000 ounces at a cost of $237,600 b. There was no beginning inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory. c. The company employs 18 lab technicians to work on the production of Fludex. Duting November, they each worked an average of 190 hours at an average pay rate of $10.50 per hour. a. Variable manufacturing overhead is assigned to Fludex on the basis of direct iabor-hours. Varioble manufacturing overhead costs during November totaied $6,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorabie, "U" for unfavorabte, and "Nond" for no effect (h.e, zero variance), input all ambunts as positive values. Huron Company produces a commercial cleaning compound known as Zoom. The ditect materials and direct labor standards for one unit of Zoom are given below: During the most recent month, the following activity was recorded. a. 22,900.00 pounds of material were purchased at a cost of $2.70 per pound. b. All of the moterial purchased was used to produce 3,000 units of Z00m. c. 1,400 hours of direct labor time were recorded at a total laber cost of \$18,200. Required: 1 Compute the materials peice and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance), Input all amounts as positive values. Round your intermediate calculations to the nearest whele dollar.)

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

Data And Analytics In Accounting An Integrated Approach

Authors: Guido Geerts, Ann C. Dzuranin, Margarita Lenk

1st Edition

1119722993, 978-1119722991

More Books

Students also viewed these Accounting questions

Question

Convert the binary number below to decimal: 1 . 1

Answered: 1 week ago

Question

Explain how to reward individual and team performance.

Answered: 1 week ago