Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66473a738de78_05166473a73047ce.jpg)
Transcribed Image Text:
Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows Direct labor Direct materials Variable manufacturing overhead Total standard cost per unit Standard Quantity or Standard Price or Rate Hours 2.5 ounces 1.4 hours 1.4 hours $ 20.00 per ounce $ 22.50 per hour $ 3.50 per hour Standard Cost $ 50.00 31.50 4.90 $ 86.40 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 12,000 ounces at a cost of $225,000 b. There was no beginning inventory of materials, however, at the end of the month, 2,500 ounces of material remained in ending Inventory. c. The company employs 35 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $22 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $18,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances b. In the past, the 35 technicians employed in the production of Fludex consisted of 20 senior technicians and 15 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows Direct labor Direct materials Variable manufacturing overhead Total standard cost per unit Standard Quantity or Standard Price or Rate Hours 2.5 ounces 1.4 hours 1.4 hours $ 20.00 per ounce $ 22.50 per hour $ 3.50 per hour Standard Cost $ 50.00 31.50 4.90 $ 86.40 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 12,000 ounces at a cost of $225,000 b. There was no beginning inventory of materials, however, at the end of the month, 2,500 ounces of material remained in ending Inventory. c. The company employs 35 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $22 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $18,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances b. In the past, the 35 technicians employed in the production of Fludex consisted of 20 senior technicians and 15 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
During 2022, Roblez Corporation had the following transactions and events. 1 . Declared a cash dividend. 2 . Issued par value common stock for cash at par value. 3 . Completed a 2-for-l stock split...
-
Write a while loop equivalent to the for loop below. You can either write your answer in the box or upload a .py file. Double-check that your file uploads correctly if you choose the second option....
-
A health insurance policy with this provision lists coverage in terms of services, not dollar amounts. Question 11 options: a) Assigned benefits b) Benefit limits c) Exclusions and limitations d)...
-
A 10.231-g sample of window cleaner containing ammonia was diluted with 39.466 g of water. Then 4.373 g of solution were titrated with 14.22 mL of 0.1063 M HCl to reach a bromocresol green end point....
-
Discuss the role the Advertising Self-Regulatory Council plays in the self-regulation of advertising. Discuss the arguments for and against self-regulation as an effective way of protecting consumers...
-
What are the different ways in which potential respondents can be recruited to construct the sampling frame in mobile marketing research?
-
The following information relating to compensated absences was available from Graf Company's accounting records at December 31, 2020. - Employees' rights to vacation pay vest and are attributable to...
-
Drilling Innovations, Inc., produces specialized cutting heads used by companies that drill for oil and natural gas. The company has recently implemented an ABC system for three of its products and...
-
CCT1036 sahil Mehta & | 06/19/21 8:15 PM Homework: Homework Assignment 4 - Ch 3 Save score: 0 of 1 pt 1 of 5 (0 complete) HW Score: 0%, 0 of 8 pts $3-8 (similar to) Assigned Media Question Help On...
-
In talking about the case of Bill, Van der Kolk paraphrases a quote from Freud: "I believe this man is suffering from memories". Oftentimes, trauma symptoms are mistaken for other mental health...
-
The merchandise plan for spring shows planned sales of $100,000 with an estimate shortage of 1.5%. What are the planned dollar shortages for spring?
-
The Student Bank of Canada charges an effective 3.4% interest per year on an 8 year $100,000 loan. Calculate the loan's nominal annual interest rate.
-
Describe two advantages of applying a 'Work System' model when evaluating a company. List the eight (8) elements of the Work System model. Provide examples of these elements from the scenario....
-
Describe in one sentence what Ricardian equivalence implies for the government budget and the current account. In another sentence, describe to what extent the equivalence holds in practice. In the...
-
How the development of China and rise of BRICS may contribute to the new "world order"? What is the outlook for the US economy given the future presidential candidates and the current presidential...
-
(A) [1 point] What field in the IP header can be used to to ensure that a packet is forwarded through no more than N routers? (B) [1 point] If a router has k interfaces, how many IP addresses does it...
-
Study the pictures/images below. Obviously these was focus on LT sociology, anthropology and poltical science. Try to do some analysis by finding clues that are synonymous with the main concepts....
-
Assuming the same information in Brief Exercise 18-25, record the income tax journal entry on December 31, 2020. Assume zero beginning balances in deferred tax accounts and there are no other...
-
Assume Company A and Company B each had a balance in deferred tax assets of \(\$ 250,000\). However, Company A has a valuation allowance related to the deferred tax asset of \(\$ 200,000\) while...
-
Maui Resort Inc. determined that the balance in its deferred tax asset account on December 31, 2020, was \(\$ 50,000\). Management reviewed all available positive and negative evidence to estimate...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App