Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Direct materials purchases budget Tobin's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12 and 16 frozen pizzas
Direct materials purchases budget Tobin's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for November: Units 12" Pizza 16" Pizza Budgeted production volume 63,000 43,000 There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows: 12" Pizza 16" Pizza Direct materials: Dough 0.55 lb. per unit 0.80 lbs. per unit Tomato 0.25 0.40 Cheese 0.70 1.20 In addition, Tobin's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, November 1 2,200 lbs. |300 lbs. 3,300 lbs. Desired inventory, November 30 2,200 lbs. 1,000 lbs. 3,000 lbs. Price per pound $0.50 $0.60 $0.85 Prepare November's direct materials purchases budget for Tobin's Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your final answers to the nearest dollar. Tobin's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending November 30 Dough Tomato Cheese Total Units required for production: 12" pizza 34,650 15,750 47,250 X 16" pizza 34,400 17,200 51,600 V Desired inventory, November 30 2,200 1,100 X 3,000 Total units available 71,250 34,050 X 101,850 X Estimated inventory, November 1 V -2,200 -900 -3,300 Total units to be purchased 69,050 33,150 X 98,550 X Unit price x $ 0.50 * $ 0.60 x $ 0.85 Total direct materials to be purchased 34,525 $ 19,890 X $ 83,768 X $ 138,183 X Feedback Check My Work Remember to take into account materials required for production, desired ending materials inventory and estimated beginning materials inventory when calculating direct materials to be purchased.Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $12.00 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.5 lbs. Standard price per lb. of brass $12.75 Actual price per lb. of brass $13.00 Actual lbs. of brass used during the week 13,905 lbs. Number of units produced during the week 9,000 Actual wage per hour $12.36 Actual hours for the week (40 employees x 35 hours) 1,400 Required: 3. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit '-' 19.12 X Direct labor standard cost per unit 'r 4.00 V Total standard cost per unit 'r 23.12 X b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ 3,476.25 X Unfavorable Direct Materials Quantity Variance $ 5,163.75 X Unfavorable Total Direct Materials Cost Variance 8,640 Unfavorable c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance 504 Unfavorable Direct Labor Time Variance -19,200 Favorable Total Direct Labor Cost Variance -18,696 Favorable Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started