Exercise 10-1 Direct Materials Variances [LO10-1) Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,400 helmets. using 2,244 kilograms of plastic. The plastic cost the company $17,054. eBook According to the standard cost card, each helmet should require 0.59 kilograms of plastic, at a cost of $8.00 per kilogram. Print Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets? 2. What is the standard materials cost allowed (SQ SP, to make 3,400 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? References (For requirements 3 and 4, 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. Do not round Intermediate calculations.) Standard quantity of kilograms allowed Standard cost allowed for actual output Materials spending variance Materials price variance Materials quantity variance Exercise 10-3 Variable Overhead Variances (LO10-3] Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried 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, 155,000 items were shipped to customers using 6,000 direct labor-hours. The company incurred a total of $17.400 in variable overhead costs According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.00 per direct labor-hour. Required: 1. What is the standard labor hours allowed (SH) to ship 155,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 155,000 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 variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.) 1. Standard quantity of labor hours allowed 2. Standard variable overhead cost allowed 3. Variable overhead spending variance 4. Variable overhead rate variance Variable overhead efficiency variance Exercise 10-2 Direct Labor Variances (LO10-2] SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 3,400 of these meals using 1,300 direct labor-hours. The company paid its direct labor workers a total of $16,900 for this work, or $13.00 per hour. Book According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $12.00 per hour. Hint Print Required: 1. What is the standard labor hours allowed (SH) to prepare 3,400 meals? 2. What is the standard labor cost allowed (SHSR) to prepare 3.400 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? Terences (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 no round Intermediate calculations. coskele Standard labor-hours allowed Standard labor cost allowed Labor spending variance Labor rate variance Labor efficiency variance Exercise 10-5 Working Backwards from Labor Variances (LO10-2] The auto repair shop of Quality Motor Company uses standards to control the labr time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: Standards Hours Standard Rate Standard Cost 2.50 $30.ee $75.00 Motor tune-up The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor re that 50 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance Labor spending variance $250 F $ 200 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.) 1. Actual labor hours 2. Actual hourly rate hours per hour Exercise 10-6 Direct Materials and Direct Labor Variances (L010-1, LO10-2) Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below. Standard Quantity or Hours 6.40 pounds .40 hours Standard Price or Rate $ 1.70 per pound $14.00 per hour Standard Cost $10.88 $ 5.60 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 18,500.00 pounds of material were purchased at a cost of $1.40 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom C. 800 hours of direct labor time were recorded at a total labor cost of $13,600. Required: 1. Compute the materials price 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 (.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar) 1. Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance 2