Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Waterways Continuing Problem 11 a-g Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not ideal at this point,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Waterways Continuing Problem 11 a-g Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not ideal at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb. 63 per lb. Plastic 12 oz. $1.00 per lb. Rubber 884 per lb. Direct labor Item Per unit Cost Labor 15 min $8.00 per hr Predetermined overhead rate based on direct labor hours $4.28 The January Rigures for purchasing, production, and labor are: The company purchased 229,000 pounds of raw materials in January at a cost of 78 a pound. Production used 229,000 pounds of raw materials to make 115,500 units in January Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. Overhead costs for January totaled $54,673 variable and $73,800 fixed. Answer the following questions about standard costs. What is the materials price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to o decimal places, e.g. 125.) Materials price variance Favorable What is the materials quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to o decimal places, e.g. 125.) Materials quantity variance Favorable What is the total materials variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to o decimal places, e.g. 125.) Total materials variance Favorable LINK TO TEXT LINK TO TEXT LINK TO TEXT What is the labor price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Labor price variance Favorable LINK TO TEXT LINK TO TEXT What is the labor quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to o decimal places, e.g. 125.) Labor quantity variance Neither favorable nor unfavorable LINK TO TEXT LINK TO TEXT LINK TO TEXT What is the total labor variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, e.g. 125.) Total labor variance Favorable

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

Auditing ISO Management System

Authors: Dr. RAMESH R LAKHE, Dr. RAKESH L. SHRIVASTAVA, M M NAVEED, KRANTI P DHARKAR, Dr. C M SEDANI

1st Edition

1702203913, 978-1702203913

More Books

Students also viewed these Accounting questions

Question

Prepare the cash flow approach.

Answered: 1 week ago