You have recently accepted a position with Sea-Jewels Inc., the manufacturer of a popular consumer product. When

Question:

You have recently accepted a position with Sea-Jewels Inc., the manufacturer of a popular consumer product. When trying to open your variance analysis files, you find some of them have become corrupted. All you can retrieve is shown below:

Standard Cost Card Direct materials, 9 kilograms at $3 per kilogram . Direct labour, 1.2 direct labour-hours at $15 per

Variances Reported Total Price Spending or Budget Standard Quantity or Efficiency or Cost* Rate Volume Direct materials.


Manufacturing overhead cost is applied to production on the basis of direct labour-hours and that all of the materials purchased during the period were used in production. Since the company uses JIT to control work flows, work in process inventories are insignificant and can be ignored. Use the information you do have to answer the following questions.


Required:

1. How many units were produced last period? (Think hard about this one!)

2.  How many kilograms of direct material were purchased and used in production?

3.  What was the actual cost per kilogram of material?

4.  How many actual direct labour-hours were worked during the period?

5.  What was the actual rate paid per direct labour-hour?

6.  How much actual variable manufacturing overhead cost was incurred during the period?

7.  What is the total fixed manufacturing overhead cost in the company's flexible budget?

8.  What were the denominator direct labour-hours for last period?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781259275814

11th Canadian Edition

Authors: Ray H Garrison, Alan Webb, Theresa Libby

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