Use the following data for questions 22 thru 27: The Litton Company has established standards as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the following data for questions 22 thru 27: The Litton Company has established standards as follows based on a plan to produce and sell 550 units: -Direct material: 3 pounds per unit @ $4 per pound = $12 per unit -Direct labor: 2 hours per unit @ $8 per hour = $16 per unit -Variable manufacturing overhead: 2 hours per unit @ $5 per hour-$10 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. Direct material used Direct material purchased (2,000 pounds) Direct labor cost (1,100 600 units 2,000 pounds $7,400 $0.040 Direct material used.................. Direct material purchased (2,000 pound............. Direct labor cost (1,100 hours)...... Variable manufacturing overhead cost incurred...... O $400 F O $600 F O $600 U 2,000 pounds The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours. The direct materials price variance is: O $400 U $7,400 $9,240 $5,720 The direct materials efficiency variance is: O$1,400 U O $760 U O $800 U direct labor-hours. O $760 F The direct labor price variance is: O $480 F O $440 F O $480 U ndard direct labor-hours. O $440 U Use the following data for questions 22 thru 27: The Litton Company has established standards as follows based on a plan to produce and sell 550 units: -Direct material: 3 pounds per unit @ $4 per pound = $12 per unit -Direct labor: 2 hours per unit @ $8 per hour = $16 per unit -Variable manufacturing overhead: 2 hours per unit @ $5 per hour-$10 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. Direct material used Direct material purchased (2,000 pounds) Direct labor cost (1,100 600 units 2,000 pounds $7,400 $0.040 Direct material used.................. Direct material purchased (2,000 pound............. Direct labor cost (1,100 hours)...... Variable manufacturing overhead cost incurred...... O $400 F O $600 F O $600 U 2,000 pounds The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours. The direct materials price variance is: O $400 U $7,400 $9,240 $5,720 The direct materials efficiency variance is: O$1,400 U O $760 U O $800 U direct labor-hours. O $760 F The direct labor price variance is: O $480 F O $440 F O $480 U ndard direct labor-hours. O $440 U
Expert Answer:
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
Use the following data for parts (a) through (f). a. Determine the equation of the least squares regression line to predict y by x. b. Using the x values, solve for the predicted values of y and the...
-
Use the following data for parts (a) through (g). a. Determine the equation of the simple regression line to predict y from x. b. Using the x values, solve for the predicted values of y and the...
-
Use the following data for a firm's output at various levels of employment (L) to calculate: a) its marginal physical product of labor (MPPL) schedule; (b) its (MPPL/MRCL) schedule, given a fixed...
-
Suppose that a countrys annual growth rates were 5, 3, 4, 1, 2, 2, 3, 4, 6, and 3 in yearly sequence over a 10-year period. What was the countrys trend rate of growth over this period? Which set of...
-
Compare and contrast the level and the chase aggregate plans.
-
County Bank has the following market value balance sheet (in millions, all interest at annual rates). All securities are selling at par equal to book value. a. What is the maturity gap for County...
-
On June 30, 2010, Nature Bank loaned $2,000,000 to Gary Simon on a one-year, 7% note. Requirements 1. Compute the interest for the years ended December 31,2010 and 2011, on the Simon note. 2. Which...
-
The following are brief descriptions of several companies in different lines of business. A. Company A is a construction company. It has recently signed a contract to build a highway over a...
-
An investor forms a portfolio of two stocks, Alpha and Beta. Information regarding the two stocks is shown below: Stock Expected Return Alpha 6% Standard Deviation 25% 30% Bravo 8% The correlation...
-
Based on the information presented in the minicase, and the discussion in both Chapter 2 and this chapter, to what extent does Elon Musk fit the general charac- teristics of an entrepreneur and a...
-
Explain the mechanisms of electrical conduction in terms of the movement of charge carriers?
-
Licensing seems to be a fairly safe way for a manufacturer to produce in a foreign market for the first time. Comment.
-
Rewrite the complete program in Sect. 1.10 using dialog boxes for input and output. Input ? Message Enter the number: 4.0 OK Cancel Two to the power of 4.0 is 16.0. OK X X
-
This company, located in Seattle, Washington, in the United States, is a distributor of engineering equipment and machine tools. The company receives an order from the Matens Company in Portugal for...
-
Who are the key stakeholders for Bayonne Ham, Feta Cheese, and Champagne?
-
Give examples of global market segments and companies that are marketing on that basis. Can small and medium-sized enterprises market successfully to such segments? Explain.
-
Based on the policies and procedures manual, important areas of Little Pear's financial needs are missing from the manual. Using the table below list the accounting and bookkeeping services Little...
-
Is the modified 5-question approach to ethical decision making superior to the modified moral standards or modified Past in approach?
-
P1-47B Using the accounting equation for transaction analysis Meg Clifford opened a public relations firm called Dance Fever on August 1, 2016. The following amounts summarize her business on August...
-
Abby Electronics makes DVD players in three processes: assembly, programming, and packaging. Direct materials are added at the beginning of the assembly process. Conversion costs are incurred evenly...
-
Prepare the balance sheet for Drought Design Studio as of December 31, 2016. The assets, liabilities, and equities of Drought Design Studio have the following balances at December 31, 2016. The...
-
Figure P18-39 shows two similar unit pulse waveforms. The only difference is that the first pulse is positive from \(-T / 2\) to \(T / 2\), while the second pulse goes from \(+\mathrm{A}\) to...
-
Describe the principal types of audits performed by independent auditors and indicate the established criteria and primary users of each tyr
-
Contrast the activities of independent, internal, and governmental auditors.
Study smarter with the SolutionInn App