Question1-

Standard Cost - Action Figure We make Harry Potter action figures. They go through Cutting, Moulding, Painting, Assembly and Packing. We buy sheets of plastic weighing 20 kg. Each finished action figure weighs 400 grams but uses 500 grams of plastic, as some is lost due to splintering, shaping and shaving. [There are 1000 grams in one kg.] [Hint: Calculate how many action figures you get from one sheet.] We buy a truckload of 100 sheets of plastic for $8,000. Delivery costs are $400. Delivery cost is part of the cost of materials. Labour rate is $20 per hour in all departments, except the Moulding Dept. is $30 per hour. Cutting: Each 20 kg. sheet takes 30 minutes. Moulding: Figures cut from 5 sheets take 2 hours in Moulding. Painting: 100 figures can be spray painted in 1 hour. Assembly: We assemble 200 figures per hour. Packing: We can pack 400 figures per hour. Overhead is applied as 80% of Direct Labour cost. REQUIRED: Compute the standard cost of one Harry Potter action figure.

Question #2 PLANNING Budgeted Sales (units) JAN FEB MAR APR Shirts 100 150 200 300 Pants 80 90 140 190 Skirts 150 200 300 350 Blouses 200 250 350 500 Current Inventory: Shirts Pants Skirts Blouses Jan.1 [Units] 120 100 170 150 Target Ending Inventory of Finished goods is to be 20% of next month's sales. Raw Material Current Inventory: Wool Cotton Silk Polyester Jan.1 [Kg] 50 70 20 80 Target Ending Inventory (Kg): 50 100 50 100 [each month] Raw Material usage Per unit (in kg): Wool Cotton Silk Polyester Shirts .25 0 .30 .40 Pants .45 .10 0 .05 Skirts .20 .10 0 .25 Blouses 0 .30 .20 0 Material cost per kg: Wool Cotton Silk Polyester $4.00 $7.00 $12.00 $2.50 All Materials are bought in 10 kg increments. Materials are paid for 70% in the current month, 30% in the following month. Note: Save Time! Not all the Finished Goods use Silk. REQUIRED: Compute the cash to be paid out for Silk in February.

Question #3 Variance Assignment Standard Cost per Backpack: 4 strips of leather @ $0.75 $3.00 6 pieces of plastic @ $0.15 $0.90 0.5 hours of labour @ $12.00/hr. $6.00 Standard Cost $9.90 During the month we purchased 5,000 strips of leather for $3,900 and 7,500 pieces of plastic for $1,050. We used 4,900 strips of leather and 7,400 pieces of plastic in the production of 1,200 backpacks. Labour cost for 580 hours was $7,076. Show 2 Material Price variances for each material. ...When material is purchased (on all units purchased). ...When material is used (on all units used). Required: Calculate material price and efficiency variances (for leather and plastic separately) and labour rate and efficiency variances. [Eight calculations] HINT: You MUST calculate the SQ of leather, plastic and hours that should be used! LEATHER: MPV (on all purchased) MPV (on amount used) MEV PLASTIC: MPV (on all purchased) MPV (on amount used) MEV BACKPACKS: LRV LEV