Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jordan Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Jordan Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow. Planned production Per unit direct materials Per unit direct labor Total estimated fixed overhead costs 25,000 units 3.20 pounds @ $2.40 per pound 2.30 hours $7.40 per hour $572,500 Jordan purchased and used 83,810 pounds of material at an average cost of $2.46 per pound. Labor usage amounted to 55,560 hours at an average of $7.55 per hour. Actual production amounted to 25,700 units. Actual fixed overhead costs amounted to $599,500. The company completed and sold all Inventory for $2,000,000. Required a. Prepare a materials variance Information table showing the standard price, the actual price, the standard quantity, and the actual quantity b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Jordan uses the number of units as the allocation base. f. Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U). g. Determine the amount of gross margin Jordan would report on the year-end Income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. (Round "Standard price" and "Actual price" to 2 decimal places.) Materials Variance Information Table Standard price per pound Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required F Required E Required G Calculate the materials price and usage var ances. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (1.e., zero variance). Round "Price variance" to 2 decimal places.) Price variance Usage variance Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. (Round "Standard price" and "Actual price" to 2 decimal places.) Labor Variance Information Table Standard price Actual price Standard hours for flexible budget Actual hours used per hour per hour Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (l.e., zero variance). Round "Price variance" to 2 decimal places.) Price variance Usage variance -- Complete this question by entering your answers in the tabs below. Required A Required B Required G Required C Required D Required E Required F Calculate the predetermined overhead rate, assuming that Jordan uses the number of units as the allocation base. (Round your answer to 2 decimal places.) Predetermined overhead rate per unit Complete this question by entering your answers in the tabs below. Required A Required B Required G Required C Required D Required E Required F Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U) (Select "None" if there is no effect (l.e., zero variance).)" Spending variance Volume variance Required E Required G > Complete this question by entering your answers in the tabs below. Required C Required D Required E Required F Required G Determine the amount of gross margin Jordan would report on the year-end income statement. (Round intermediate calculations to the nearest whole dollar.) Gross margin

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

Step: 3

blur-text-image

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

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

2nd Canadian Edition

0176707123, 978-0176707125

More Books

Students also viewed these Accounting questions