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 4,012 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 Hifferences. lab Order Costing Section On January 1, 20x2. Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The ob called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,225 Lamp Kits @ $16.70 per kit. 9-Jan 4,075 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 560 Direct Labor Hours @ $9.45 per hour. 30-Jan Payroll of 610 Direct Labor Hours @ $9.70 per hour. 30 Jan 3,988 lamps were completed and shipped. Al 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) IPART 7 Capital Decision Making Eg gives his worker's one hour lunch and to the minute breaks each day. He believes that a Laid soda machine would be created by his workers, and an coreciated worker is a good worker He has priced a machine and member or wor se for $1.850. The machine should be La for 3 years, which it would be incontr a nd would have to be disposed of the Jump Big Abelieves that 12 com a dry will be purchased. The plant is open five days a week. 50 s per year. A case of soda (24 cans) costs $6.48 and Big Al believes that a price of $ 55 per Ian would win him good will I What is the estimated ma les incis soda? (17.01) What is the contribution marginemo sodat rounded to two places, S. (17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero place (1703) Annual incremental cashindows from the soda machine? (rounded (17.04) What is the payback period in years? (rounded to two place (17.05) the time value of money is 12% per yes (17.05) What is the internal r orum Pokhe closest terest rate from the ble on page {17.07) 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 4,012 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 Hifferences. lab Order Costing Section On January 1, 20x2. Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The ob called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,225 Lamp Kits @ $16.70 per kit. 9-Jan 4,075 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 560 Direct Labor Hours @ $9.45 per hour. 30-Jan Payroll of 610 Direct Labor Hours @ $9.70 per hour. 30 Jan 3,988 lamps were completed and shipped. Al 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) IPART 7 Capital Decision Making Eg gives his worker's one hour lunch and to the minute breaks each day. He believes that a Laid soda machine would be created by his workers, and an coreciated worker is a good worker He has priced a machine and member or wor se for $1.850. The machine should be La for 3 years, which it would be incontr a nd would have to be disposed of the Jump Big Abelieves that 12 com a dry will be purchased. The plant is open five days a week. 50 s per year. A case of soda (24 cans) costs $6.48 and Big Al believes that a price of $ 55 per Ian would win him good will I What is the estimated ma les incis soda? (17.01) What is the contribution marginemo sodat rounded to two places, S. (17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero place (1703) Annual incremental cashindows from the soda machine? (rounded (17.04) What is the payback period in years? (rounded to two place (17.05) the time value of money is 12% per yes (17.05) What is the internal r orum Pokhe closest terest rate from the ble on page {17.07)