Riley Company produces and sells a single product with budgeted or standard unit costs as follows:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Riley Company produces and sells a single product with budgeted or standard unit costs as follows: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total unit cost Standard Quantity 2 gallons 3 hours 3 hours 3 hours Standard Cost $22 42 120 180 $364 During April 1,100 units were manufactured and 1,000 units were sold at a sales price of $610. Actual results for April were as follows: Direct materials purchased 2,400 gallons at $10 per gallon Direct materials used 2,340 gallons Direct labor used 3,480 hours at $15.20 per hour Variable overhead costs incurred $135,600 Fixed overhead costs incurred $183,500 Instructions: Compute the following variances and indicate whether the variances are favourable or unfavourable; and if unfavourable explain why. Riley Company produces and sells a single product with budgeted or standard unit costs as follows: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total unit cost Standard Quantity 2 gallons 3 hours 3 hours 3 hours Standard Cost $22 42 120 180 $364 During April 1,100 units were manufactured and 1,000 units were sold at a sales price of $610. Actual results for April were as follows: Direct materials purchased 2,400 gallons at $10 per gallon Direct materials used 2,340 gallons Direct labor used 3,480 hours at $15.20 per hour Variable overhead costs incurred $135,600 Fixed overhead costs incurred $183,500 Instructions: Compute the following variances and indicate whether the variances are favourable or unfavourable; and if unfavourable explain why.
Expert Answer:
Answer rating: 100% (QA)
The image you provided contains information on standard cost and actual cost for a company named Riley Company which produces and sells a single produ... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
Barker Company produces and sells a single product with budgeted or standard costs as follows: Inputs Standards Direct materials 10 lbs at $10.00 per pound Direct labor 8 hours at $12.50 per hour...
-
Which author did the majority of ridealongs with police officers, and WHY was that the case? What potential drawbacks to ride-alongs with police as a means of data collection were mentioned by the...
-
The data below provides weekly sales for the past 12 weeks (weeks 21-32). Week Sales 21 4,000 22 3,655 23 3,958 24 3,983 25 4,538 26 4,120 27 4,692 28 4,421 29 4,859 30 5,030 31 5,540 32 5,670 Use a...
-
The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2017. VILLAGE OF PARRY-PRINT SHOP FUND Statement of Revenues, Expenses, and Changes in Net Position...
-
Identify and sketch the graph of each equation. Give the domain, range, coordinates of the vertices for each ellipse or hyperbola, and equations of the asymptotes for each hyperbola. Give the domain...
-
Find the cross-sectional area \((A)\) and the area moment of inertia (I) of a simply supported steel beam of length \(1 \mathrm{~m}\) for which the first three natural frequencies lie in the range...
-
Units of production data for the two departments of Coastal Cable and Wire Company for September of the current fiscal year are as follows: If all direct materials are placed in process at the...
-
During the current year, Mark sells a tract of land for $550,000. The property was received as a gift from Marva on March 10, 1995, when the property had a $350,000 fair market value (FMV). The...
-
Which of the following statements does not describe a characteristic of management accounting? A) Management accounting places a great deal of emphasis on the future. B) Management accounting must...
-
A laboratory technician is timed 20 times in the performance of a task, getting \(\bar{x}=7.9\) and \(s=1.2 \mathrm{~min}-\) utes. If the probability of a Type I error is to be at most 0.05 , does...
-
Using the following equation for the demand for a good or service, calculate the price elasticity ofdemand (using the point form), cross-price elasticity with good x, and income elasticity. Q = 8 -...
-
The compressive strength of parts made from a composite material are known to be nearly normally distributed. A scientist, using the testing device for the first time, obtains the tensile strength...
-
Refer to Exercise 7.87. (a) Perform a test with the intention of establishing that the mean time to return a call is greater than 1.5 hours. Use \(\alpha=0.05\). (b) In light of your conclusion in...
-
For a \(N(160,25)\) distribution (a) The area to the right of 140 (b) The area to the left of 200 Find the specified areas for a normal distribution.
-
P19-35A (similar to) Mahoney Plant Service completed a special landscaping job for Killian Company. Mahoney uses ABC and has the following predetermined overhead allocation rates: (Click the icon to...
-
The baseball player A hits the ball from a height of 3.36 ft with an initial velocity of 34.8 ft/s. 0.14 seconds after the ball is hit, player B who is standing 15 ft away from home plate begins to...
-
How is job costing in service organizations (for example, consulting firms) different from job costing in manufacturing organizations?
-
Sids Skins makes a variety of covers for electronic organizers and portable music players. The companys designers have discovered a market for a new clear plastic covering with college logos for a...
-
How does the choice of a transfer price affect the operating profits of both segments involved in an intra-company transfer? Why is the choice of a transfer price important if the total profits of...
-
A stock price is governed by \[\frac{\mathrm{d} S}{S}=\mu \mathrm{d} t+\sigma \mathrm{d} z\] where \(z\) is a standardized Wiener process. Interest is constant at rate \(r\). An investor wishes to...
-
At the beginning of April one year, the silver forward prices (in cents per troy ounce) were as follows: The carrying cost of silver is about 20 cents per ounce per year, paid at the beginning of...
-
Suppose that a forward contract on an asset is written at time zero and there are \(M\) periods until delivery. Suppose that the proportional carrying charge in period \(k\) is \(q S(k)\), where...
Study smarter with the SolutionInn App