Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Exercise 9-4 (Algo) Direct Materials Variances (L09-4) Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the

image text in transcribed
image text in transcribed
image text in transcribed
Exercise 9-4 (Algo) Direct Materials Variances (L09-4) 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 3,800 helmets, using 2.622 kilograms of plastic. The plastic cost the company $19,927. According to the standard cost card, each helmet should require 0.63 kilograms of plastic, at a cost of $8.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets? 2. What is the standard materials cost allowed (SQSP) to make 3,800 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity 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 (1.e., zero variance). Input all amounts as positive values. Do not round Intermediate calculations.) X 1. Standard quantity of kilograme allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance 4. Materials quantity variance Exercise 9-5 (Algo) Direct Labor Variances (LO9-5) SkyChefs, Incorporated, 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 7,300 of these meals using 1,450 direct labor-hours. The company paid its direct labor workers a total of $14,500 for this work, or $10.00 per hour According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $9.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 7,300 meals? 2. What is the standard labor cost allowed (SHSR) to prepare 7,300 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor 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 (l.e., zero variance). Input all amounts as positive values. Do not round Intermediate calculations.) 1. Standard labor-hours alowed 2. Standard labor cost allowed 3. Labor spending variance 4. Labor rate variance 4. Labor efficiency variance Exercise 9-6 (Algo) Variable Overhead Variances (LO9-6] 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, 165,000 items were shipped to customers using 6,800 direct labor-hours. The company incurred a total o $22,100 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 $3,30 per direct labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 165,000 items to customers? 2. What is the standard variable overhead cost allowed (SHSR) to ship 165,000 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 (1.e., zero variance). Input all amounts as positive values. Do not 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 4 Variable overhead efficiency 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_2

Step: 3

blur-text-image_3

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

CPA Exam Review 2020 At Least Know This Auditing And Attestation

Authors: At Least Know This

1st Edition

1706038364, 978-1706038368

More Books

Students explore these related Accounting questions