Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The KC Company has established standards as follows: Direct Material 3kgs @ $9/kg = $27 per unit Direct Labour 2hr. @ $14.25/hour $28.50 per unit

image text in transcribed
image text in transcribed
image text in transcribed
The KC Company has established standards as follows: Direct Material 3kgs @ $9/kg = $27 per unit Direct Labour 2hr. @ $14.25/hour $28.50 per unit Variable Manufacturing Overhead 2hr @ $1.75/hour = $3.5 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units Produced 1,450 Direct Material Used 5,000 kg $37,500 Direct Materials Purchased (5000kg) Direct Labour Cost (2500 hrs) S36,250 Variable Manufacturing Overhead Cost Incurred $4,950 The company applies variable manufacturing overhead to products on the basis of direct labour hours. What was the materials quantity variance? A. $6,050 Favourable B. $5,850 Unfavourable C. 55,850 Favourable D. $6,050 Unfavourable The KC Company has established standards as follows: Direct Material 3kgs @ $9/kg - $27 per unit Direct Labour 2hr. @$14.25/hour = $28.50 per unit Variable Manufacturing Overhead 2hr @ $1.75/hour - $3.5 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units Produced 1,450 Direct Material Used 5,000 kg Direct Materials Purchased (5000kg) $37,500 Direct Labour Cost (2500 hrs) $36,250 Variable Manufacturing Overhead Cost Incurred $4,950 The company applies variable manufacturing overhead to products on the basis of direct labour hours. What was the materials price variance? A. $7,500 Favourable B. $97,500 Favourable C. $7,500 Unfavourable D. $97,500 Unfavourable Day Enterprises sells a single product for $37 per unit. Direct materials costs were $9 per unit, while direct labour and variable manufacturing overhead costs were $8 and 53 respectively. Fixed manufacturing overhead costs amount $24,000 per month. Variable selling costs are $5 per unit. Fixed selling costs are $9,000 per month. Last month, the company produced 10,000 units and sold 6,000 units. What is Day Enterprises operating income using variable costing? A $39,000 B. $45,400 C. 552,000 D. $48,600

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_2

Step: 3

blur-text-image_3

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

Fraud Examination Investigative And Audit Procedures

Authors: Joseph T. Wells

1st Edition

089930639X, 978-0899306391

Students also viewed these Accounting questions

Question

How do hybrid carriers fill the gap between LCCs and FSNCs?

Answered: 1 week ago