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Hello, I need some help with these related problems. Problem #8: Standard Costing and Variances Jake's Cheese Company produces gourmet cheese for resale at local
Hello, I need some help with these related problems.
Problem \#8: Standard Costing and Variances Jake's Cheese Company produces gourmet cheese for resale at local grocery stores. The master budget indicates that the company expects to use 3.0 pounds of direct materials for each unit produced at a cost of $B.00 per pound (one unit = one batch of cheese). Each unit produced will require 0.50 direct labor hours at a cost of $10.00 per hour. Variable manufacturing overhead is applied based on direct labor hours at a rate of $5.00 per hour. Last year's sales were expected to total 50,000 units. Jake just received last year's actual results showing sales of 45,000 units. Required: (1) Calculate the standard cost per unit for direct materials, direct labor, and variable manufacturing overhead. (2) Prepare a flexible budget based on actual sales for direct materials, direct labor, and variable manufacturing overhead. Problem \#9: Standard Costing \& Variances Financial Planning and Control Summative Assessment: Outline \& Rubric Jake's Cheese Company produces gourmet cheese for resale at local grocery stores. Jake's expected to use 3.0 pounds of direct materials to produce one unit (batch) of product at a cost of $8 per pound. Actual results are in for last year, which indicates 45,000 batches of cheese were sold. The company purchased 160,000 pounds of materials at $7.50 per pound, and used 145,000 pounds in production. Required: (1) Calculate the materials price variance. (2) Calculate the materials quantity variance. (3) Suggest several possible reasons for the materials price and quantity variances calculated in requirements (1) and (2). Problem \#10: Standard Costing \& Variances Jake's Cheese Company produces gourmet cheese for resale at local grocery stores. Jake's expected to use 0.50 direct labor hours to produce one unit (batch) of product at a cost of $10 per hour. Actual results are in for last year, which indicates 45,000 batches of cheese were sold. The company's direct labor workforce worked 27,500 hours at $9 per hour. Required: (1) Calculate the labor rate variance. (2) Calculate the labor efficiency variance. (3) Suggest several possible reasons for the labor rate and efficiency variances. Problem \#11: Standard Costing \& Variances Jake's cheese Company produces gourmet cheese for resale at local grocery stores. Jake's expected to use 0.50 direct labor hours to produce one unit (batch) of product, and the variable overhead rate is $5.00 per hour. Actual results are in for last year, which indicates 45,000 batches of cheese were produced and sold. The company's direct labor workforce worked 27,500 hours, and variable overhead costs totaled $144,000. Required: (1) Calculate the variable overhead spending variance. (2) Calculate the variable overhead efficiency variance. (3) Suggest several possible reasons for the variable overhead spending and efficiency variancesStep by Step Solution
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