Milling prepares flexible budgets and uses a standard cost system to control manufacturing costs. The is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Milling prepares flexible budgets and uses a standard cost system to control manufacturing costs. The is based on static budget volume of 65,000 bags Milling manufactures flours and sold to bakeries and other supermarkets. standard unit cost of a bag of 45KG of 45KG per month: Direct Materials (.3 @ $0.40 lb.) per Direct Labor (5 mins. @ $0.20 .12 1.00 per min.) Manufacturing Overhead: Variable (5 mins. @ $0.10 per min.) .50 Fixed (5 mins. @ $0.20 per min.) 1.50 $2.62 1.00 Total cost per unit Actual cost and production information for December 2021 follows: a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 70,000 bags of 45KG c. Actual direct materials usage was 20,000 lbs. at an actual cost of $0.26 per lb. d. Actual direct labor usage was 210,000 minutes at a total cost of $39,500 e. Actual overhead cost was $9,000 variable and $35,000 fixed. f. Selling and administrative costs were $125,000 Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. Milling prepares flexible budgets and uses a standard cost system to control manufacturing costs. The is based on static budget volume of 65,000 bags Milling manufactures flours and sold to bakeries and other supermarkets. standard unit cost of a bag of 45KG of 45KG per month: Direct Materials (.3 @ $0.40 lb.) per Direct Labor (5 mins. @ $0.20 .12 1.00 per min.) Manufacturing Overhead: Variable (5 mins. @ $0.10 per min.) .50 Fixed (5 mins. @ $0.20 per min.) 1.50 $2.62 1.00 Total cost per unit Actual cost and production information for December 2021 follows: a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 70,000 bags of 45KG c. Actual direct materials usage was 20,000 lbs. at an actual cost of $0.26 per lb. d. Actual direct labor usage was 210,000 minutes at a total cost of $39,500 e. Actual overhead cost was $9,000 variable and $35,000 fixed. f. Selling and administrative costs were $125,000 Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances.
Expert Answer:
Answer rating: 100% (QA)
Pricerate variance is cost variance 2800 Favorable 400 Favorable 2500 Favorable 28000 Favorable 1 Di... View the full answer
Related Book For
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman
Posted Date:
Students also viewed these accounting questions
-
SkiTwin Corporation uses a standard cost system to assist in its manufacture of water skis, and uses a standard cost system to assist in its manufacture of water skis, na d uses direct labour hours...
-
Julene Inc manufactures semiconductors and uses a standard cost system for both planning and control purposes. Julenes standard cost system records inventory at actual cost when purchased. In May,...
-
Futuristic Fabricators Inc. uses a standard cost system to account for its single product. The standards established for the product include the following: Materials . . . . . . . . . . . . . . . . ....
-
A water sprinkler sprays water over a distance of 30 feet while rotating through an angle of 135. What area of lawn receives water? 135 30 ft
-
On Brenda Sniezeks first day of work for the Kansas City Chiefs Football Club, she signed a document that purported to compel arbitration of any disputes that she might have with the Chiefs. In the...
-
Briefly describe the challenges a food and beverage director faces on a daily basis.
-
When a board member leaves the board, when is it desirable or wise to keep this person involved with the organization? How could this be accomplished?
-
Shellie??s Lawn and Gardening performs various lawn and garden maintenance activities, including lawn mowing, tree and shrub pruning, fertilizing, and treating for pests. Unlike other lawn and garden...
-
At the beginning of 2 0 2 2 , Mark Candy has two properties in Class 1 0 . that are used in his business. The UCC balance in this class is $ 7 , 4 2 3 , 0 0 0 . The capital cost of each of the two...
-
isabelle sterling, the partner you work for, unexpectedly had to travel to Hong Kong. She left you the Tang Aluminum Products file for your client, Global Bank. Global will be lending Tang 1.9...
-
CASE 3-6 Club Med and the International Consumer Club Mditerrane had represented to the present day-sun, sea, and sport. It was still raining in New York on May 31, 2014 when Claire Moreau, CMO...
-
When an auditor says "I have found, " it means: a. He or she personally, or through assistants, observed the condition. b. The condition is a matter of record. c. A high-placed executive informed the...
-
The underlying theory of regression analysis is that: a. No two variables are alike. b. Dependent variables act in an un- predictable manner. c. Independent variables never act alone. d. The behavior...
-
When an expert, acknowledged in the field, is used to evaluate quantita- tive models and methods employed: a. The internal auditor can safely re- linquish his or her audit responsi- bilities. b. The...
-
Develop a social media campaign for your new business idea. Make sure to use social media that match what your customers use in their daily lives. Integrate social media with your website, blog and...
-
Discuss the advantages and disadvantages of equity financing for entrepreneurial ventures.
-
An employer has calculated the following amounts for an employee during the last week of March 2021. Required Gross wages Income taxes Canada Pension Plan Employment Insurance $1,500 300 78.08 23.70...
-
Outline a general process applicable to most control situations. Using this, explain how you would develop a system to control home delivery staff at a local pizza shop.
-
Advanced Medical (AM) manufactures four different blood oxygen level monitors (A300, B400, C500, and D600) at its Denver plant. The Denver plant opened four years ago and was built with the...
-
Ed Koehler started Great Southern Furniture five years ago to assemble prefabricated bedroom furniture for large hotel chains. Hotels purchase furniture (beds, night stands, and chests of drawers)...
-
Salespeople at a particular firm forecast what they expect to sell next period. Their supervisors then review the forecasts and make revisions. These forecasts are used to set production and...
-
Using Rules 5.1, show that if \(x>0\) and \(y <0\) then \(x y <0\), and that if \(a>b>0\) then \(\frac{1}{a}
-
For which values of \(x\) is \(x^{2}+x+1 \geq \frac{x-1}{2 x-1}\) ?
-
For which values of \(x\) is \(-3 x^{2}+4 x>1\) ?
Study smarter with the SolutionInn App