Question
Can you please answer all the parts of question #1? 1A. Sana Rosa Company manufactures unfinished home furniture. Sana Rosa uses a standard cost system.
Can you please answer all the parts of question #1?
1A. Sana Rosa Company manufactures unfinished home furniture. Sana Rosa uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows:
Direct labor: | standard rate | $17.00 per hr. |
standard time per unit | 3 hrs. | |
Direct materials (oak): | standard price | $8.00 per bd. ft. |
standard quantity | 18 bd. ft. | |
Variable factory overhead: | standard rate | $3.20 per direct labor hr. |
Fixed factory overhead: | standard rate | $1.20 per direct labor hr. |
a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. $per table
b. A standard cost system provides Sana Rosa management a cost control tool using the principle of . Using this principle, cost deviations from standards can be investigated and corrected.
1B. The following data relate to the direct materials cost for the production of 2,400 automobile tires:
Actual: | 49,000 lbs. at $1.85 per lb. | |
Standard: | 47,500 lbs. at $1.8 per lb. |
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Materials Price Variance | $ | |
Direct Materials Quantity Variance | $ | |
Total Direct Materials Cost Variance | $ |
b. The direct materials price variance should normally be reported to the . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the ..?
1C. The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:
Quantity of direct materials used | 6,600 lbs. |
Actual unit price of direct materials | $3 per lb. |
Units of finished product manufactured | 1,580 units |
Standard direct materials per unit of finished product | 4 lbs. |
Direct materials quantity varianceunfavorable | $896 |
Direct materials price variancefavorable | $1,320 |
Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places.
Product finished | units | |
Standard finished product for direct materials used | units | |
Deficiency of finished product for materials used | units | |
Standard cost for direct materials | $ | per unit |
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