Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the following questions, thank you! Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by

please answer the following questions, thank you!
image text in transcribed
image text in transcribed
image text in transcribed
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, 125,000 items were shipped to customers using 4.400 direct labor-hours. The company incurred a total of $12,540 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 $2.90 per direct labor-hour Required: 1 What is the standard labor hours allowed (SH) to ship 125,000 items to customers? 2. What is the standard variable overhead cost allowed (SHX SR) to ship 125,000 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 (l.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 officiency variance Dawson Toys, Limted produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy Direct materials: 6 microns per toy at $0.31 per micron Direct labor: 1.2 hours per toy at $7.30 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: Direct materials: 75,000 microns were purchased at a cost of $0.30 per micron, 33,750 of these microns were still in inventory at the end of the month Direct labor 7100 direct labor-hours were worked at a cost of $54,670. Required: 1. Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance), Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity variances b. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity variance tb Labor rate vanance 1b. Labor efficiency variance 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 Standard or Hours Standard Price or Rate Cost Direct materials 6.90 pounds $ 2.50 per pound $ 17.25 Direct labor 0.50 hours $ 13.50 per hour $ 6.75 During the most recent month, the following activity was recorded: a. Thirteen thousand four hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,340 units, using 12,060 pounds of material. (The rest of the material purchased remained in raw materials inventory) C 770 hours of direct labor time were recorded at a total labor cost of $9,240 Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "P" for favorable. "U" for unfavorable, and "None" for no effect (le, zero variance) Input all amounts as positive values. Do not round intermediate calculations.) Materials price variance Materials quantity 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

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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

15th edition

978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290

More Books

Students also viewed these Accounting questions