Chemlink Inc. uses a standard cost system to account for the costs of its production of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Chemlink Inc. uses a standard cost system to account for the costs of its production of Chemical X. Standards are 3.1 gallons of materials at $122 per gallon and 27 hours of labor at a standard wage rate of $29. During September, Chemlink produced 3,300 gallons of Chemical X. Chemlink purchased and used totaled 3,740 gallons at a total cost of $460,180. Actual direct labor cost totaled $319,730 for 26,280 hours worked. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Price Variance b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Quantity Variance c. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance d. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Efficiency Variance Chemlink Inc. uses a standard cost system to account for the costs of its production of Chemical X. Standards are 3.1 gallons of materials at $122 per gallon and 27 hours of labor at a standard wage rate of $29. During September, Chemlink produced 3,300 gallons of Chemical X. Chemlink purchased and used totaled 3,740 gallons at a total cost of $460,180. Actual direct labor cost totaled $319,730 for 26,280 hours worked. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Price Variance b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Quantity Variance c. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance d. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Efficiency Variance
Expert Answer:
Answer rating: 100% (QA)
a Standard Rate 12200 3900 Variance b d Standard Quantity 1023000 791780 Variance c Standard R... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Boston Tooling uses a standard cost system to account for the costs of its one product. Standards are 4.0 sheets of inch steel at $110 per sheet and 14.1 hours of labor at a standard wage rate of...
-
Boston Tooling uses a standard cost system to account for the costs of its one product. Standards are 4.0 sheets of 1/2 inch steel at $110 per sheet and 14.1 hours of labor at a standard wage rate of...
-
The truss ABC shown in the figure supports a horizontal load P1 = 300 lb and a vertical load P2 = 900 lb. Both bars have cross-sectional area A = 2.4 in.2 and are made of steel with E = 30 Ã...
-
Ten years have passed since Arnell issued $10 million in perpetual interest only debt with a 6% annual coupon, as in Problem 6. Tax rates have remained the same at 35% but interest rates have...
-
Imagine that you work for a university as the head of transportation. You want to encourage people to take the bus rather than park on campus because spots are limited. Prepare agenda slides for two...
-
What is the relationship between UCs and Modes of Operations?
-
The comparative balance sheet of Juras Equipment Co. for December 31, 2013 and 2012, is as follows: The following additional information was taken from the records of Juras Equipment: a. Equipment...
-
Explore key security features implemented at the kernel level, such as mandatory access controls (e.g., SELinux, AppArmor) and address space layout randomization (ASLR). How do these features...
-
The idealized cross-section of a two-cell thin-walled wing box is shown below with the data in Table 22.7. If the wing box supports a load of 44,500 N acting along web 25, calculate the shear flow...
-
Beams are used in everyday life, all around us. This is what makes the study of beam internal forces, stresses, and deflections of such utility to the mechanical engineer. Describe the loading and...
-
If current liabilities are $30,000, non-current liabilities are $70,000, owners' equity is $80,000, and net income is $30,000. Calculate Returns on assets
-
A company purchased $2,000 of merchandise on August 15 with terms 1/10, n/30. On August 17, it returned $200 worth of merchandise. On August 18, it paid the amount due. The amount of the cash paid on...
-
Calculate the percentage change in full price of 30-year, 6% semiannual-pay bond currently trading at 7% for an increase in yield of 50 basis points.
-
A new primary care physician moved into the area and approached your hospital to partner with her as she begins a new practice in the community. Because the administration is always anxious to...
-
What is Embedded Firmware? What are the various methods available for developing Embedded Firmware? (ii) Explain the role of Reset circuit in Embedded System. (iii) Explain the role of Real Time...
-
You, Melody Lee, are serving as the president of the Hong Kong Playwright Club. This notable self - financing unit brings together professional actors and playwrights of drama and plays in...
-
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill...
-
Ruby Barr, SS# 036-47-2189, is a Grade 1 Machinist who earns $20 per hour. On Monday, June 24 through Wednesday, June 26, she worked four hours per day on each of Jobs 007 and 2525. On Thursday and...
-
Hoopster Inc. manufactures basketballs. The company's fore casted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are...
-
The payroll records of Software Inc. for the week ending October 7, the 40th week in the year, show the following: Required: 1. Complete a work sheet with the following column headings: Employee 3...
-
On 1 June, Sugar Rush Ltd had Accounts Receivable and Allowance for Doubtful Debts accounts as below. GST Inclusive. The following transactions occurred during the month of June: 5. Credit sales...
-
On 1 June, Cambria Financial Services Ltd had balances in the Accounts Receivable and Allowance for Doubtful Debts accounts as set out below. Ignore GST. The following transactions occurred during...
-
Outback Get Away Ltd sells four-wheel drive accessories and recovery equipment on credit. The accounting records at 30 June 2023 highlights the following. Ignore GST. In the past, the companys yearly...
Study smarter with the SolutionInn App