Please answer the highlighted portions of the questions.
Standard Job Order Costing - Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders: Standards Lamp Kits Direct Labor Variable Overhead ** Fixed Overhead Total $ 16.000000 per lamp 2.400000 per lamp (4 lamps/hr.) 0.250000 per lamp (4 lamps/hr.) 10.000000 per lamp $ 28.650000 ** Fixed overhead is based on expected production of 4,008 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences. Job Order Costing Section On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,050 Lamp Kits @ $16.55 per kit. 9-Jan 4,150 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 620 Direct Labor Hours @ $9.80 per hour. 30-Jan Payroll of 670 Direct Labor Hours @ $10.05 per hour. 30-Jan 3,992 lamps were completed and shipped. All materials requisitioned were used or scrapped. How many Lamps were completed? Note: Show favorable variances as negative numbers Round dollars to two places, $##.## What was the total material price variance for the Lamp Kits purchased? {15.01} What was the material usage variance for Lamp Kits? {15.02} What was the direct labor efficiency variance ? {15.03} What was the direct labor rate variance? {15.04} Note: Show favorable variances as negative numbers What was the variable overhead efficiency variance ? {16.01} What was the variable OH spending variance ? {16.02} What is the fixed OH volume (denominator) variance? {16.03} What is the fixed OH spending variance? {16.04} Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $2,050. The machine should be usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 8 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $6.00 and Big Al believes that a price of $.85 per can would win him good will. What is the estimated annual sales in cans of soda? 1,700 cans {17.01} What is the contribution margin per can of soda? (rounded to two places, $#.##) 0.60 {17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans) 1,139 cans {17.03} You ente Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##) {17.04} What is the payback period in years? (rounded to two places, #.## years) {17.05} If the time value of money is 12% per year what is the net present value? Use the tables on page 18. {17.06)
