The direct maternals and deect labour standards for one botte of Clean-All spray cleaner are gven beiow During the mostrecent month, the following activity was recorded a. 20,500 mitilites of matental was purchased at a cost ot $0.21 per munitre b. All of the material was used to produce 3,000 botlies of Clean-All. c. 650 hours of direct labour time was recorded at a total labour cost of $7.800 Aequirect. 1. Compute the direct matetlals price and quantity variances for the month. (indicate the effect of eoch variance by selecting "F" for fovourable, "U" for unfavourabie, ond "None" for no effect (L.e., zero varlance).) 2. Compute the direct labour rate and efficlency vanances for the month. (indicote the effect of each varlonce by selecting "F" for favourable, "U" for unfovourable, and "None" for no effect (l.e., zero-variance)-) Affordabie Electronics inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows Duning July, 8,580 hours of direct labour time were recorded to make 28,000 units. The direct labour cost totalled $159,588 for the ithonth Requireat: 1-0. What direct labour cost should have been incurred to make the 28,000 speakers? (Do not Pound intermediate calculations.) 1-b. By how much does direct iabour cost differ from the cost that was incurred? (indicate the effect of variance by selecting "F" for fovourable, "U" for unfovourable, and "None" for no effect (l.e., zero variance).) The condensed form of Nordstrop Company's nexible budget for manufacturing overhead follows The following information is avallable for a tecent penod. a. The denominator activity of 7,000 machine-hours was chosen to compute the predetermined overhead rate- b. At the 7.000 standard machine-hours level of activity, the company should produce 3.500 units of product c. The company's actual operating resuits were as follows: Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements (Round your answers to 2 decimal piaces.) 2. What were the standard hours allowed for the year's actual output? (Do not round Intermediate caiculations.) 2. What were the standard hours allowed for the year's actual output? (Do not round intermedlpte coicutations.) 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Do not round Intermedlate calculations. Round your answers to 2 decimal places. Indleate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (I.e., zero verlance).) Maxime S. A is a small company that processes wild mushrooms found in the forests of central France. For many years, Maxime's products have had strong sales in France. However, companies from other countries in Europe, such as ltaly and Spain, have begun marketing similar products in France, and price competition has become intense. Jean Gauthier, the company's controller, is planning to implement a standard costing system for Maxime and has gathered considerable information from the purchasing and production managers concerning production and material requirements for Maxime's products. Gauthier believes that the use of standard costing will allow Maxime to improve cost control and thereby better compete with the new entrants into the French market. Maxime's most popular product is dried chanterelle mushrooms, which are sold in small vacuum-packed jars. Each jar contains 15 grams of dried mushrooms. Fresh mushrooms are purchased for 660 per kilogram in bulk from individuals who gather them from local forests. (c stands for euro, the currency used in France) Because of imperfections in the mushrooms and normal spollage, one-quarter of the fresh mushrooms are discarded. Fifteen minutes is the direct labour time required for inspecting and sorting per kltogram of fresh mushrooms. After sortung and inspecting, the acceptable mushrooms are flash-dried, which requires 10 minutes of direct labour time per kilogram of acceptable, sorted, and inspected fresh mushrooms. The flash-drying remobves most of the moisture content of the mushrooms and therefore reduces the weight of the acceptabie mushrooms by 80%. As a consequence, a kilogram of acceptable fresh mushrooms ylelds only about 150 grams of dried mushrooms. After drying, the mushrooms are vacuum-packed in smali jars and labels are applied Direct labour is paid at a rate of 612 per hour. The cost of the glass Jars, llds, and labels is 610 per 100 jars The labour time required to pack 100 jars is 10 minutes. Required: 1. Develop the standard cost for the direct labour and materials cost components of a single jar of arled chanterelle mushrooms, including the costs of the mushrooms, inspecting and sorting, drying, and packing. (Round intermedlate calculations and final answers to 2 decimal places.)
