Hope Inc. is a manufacturing company that produces fertilizer for various industrial uses. The standard costs...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hope Inc. is a manufacturing company that produces fertilizer for various industrial uses. The standard costs for 1 bag of fertilizer is as follows: Per bag Direct materials (5 g @ $4.00/kg) Direct labour (1.5 hrs @ $8.00/hr) Total estimated variable overhead for the year is $1,050,000. Variable overhead is allocated using direct labour hours. Actual results for the last year were: Actual output Direct materials (purchased and used 1,023,000 kg) Direct labour (308,000 hrs worked) Variable overhead Hope expects to work a total of 375,000 direct labour hours per annum. Required: (a) Calculate the following variances: (i) (iii) $ 20.00 12.00 Direct material price, quantity and total variances Direct labour price, quantity and total variances Variable overhead spending, efficiency and total variances (b) Comment on the direct material variances. 220,000 bags $ 4,347,750 2,371,600 954,800 Hope Inc. is a manufacturing company that produces fertilizer for various industrial uses. The standard costs for 1 bag of fertilizer is as follows: Per bag Direct materials (5 g @ $4.00/kg) Direct labour (1.5 hrs @ $8.00/hr) Total estimated variable overhead for the year is $1,050,000. Variable overhead is allocated using direct labour hours. Actual results for the last year were: Actual output Direct materials (purchased and used 1,023,000 kg) Direct labour (308,000 hrs worked) Variable overhead Hope expects to work a total of 375,000 direct labour hours per annum. Required: (a) Calculate the following variances: (i) (iii) $ 20.00 12.00 Direct material price, quantity and total variances Direct labour price, quantity and total variances Variable overhead spending, efficiency and total variances (b) Comment on the direct material variances. 220,000 bags $ 4,347,750 2,371,600 954,800
Expert Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0078025525
4th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price ................ $150 Units in beginning inventory...
-
The following information relates to a manufacturing company that produces special machines made by order.The company has 3 outstanding jobs: Job A320, Job A321, and Job A322. $180,000 worth of...
-
The Gibson Corporation is a manufacturing company that uses automatic stamping machines to manufacture garage doors from rolled sheets of raw steel. Gibson's inventory of raw steel averages $600,000....
-
3. In this problem the bond sells for a premium, which indicates that interest rates have declined. The current yield is $70/$1,222 = 5.73%. To confirm that interest rates have declined, determine...
-
Assume Johnson Manufacturing uses three allocation bases to allocate overhead costs from departments to jobs: number of different parts, number of machine hours, and number of job setup hours. The...
-
What is an activity dictionary?
-
A viscous fluid is poured onto a horizontal plate as shown in Fig. P7.27. Assume that the time, \(t\), required for the fluid to flow a certain distance, \(d\), along the plate is a function of the...
-
Garys Steel Parts produces parts for the automobile industry. The company has monthly fixed costs of $660,000 and a contribution margin of 75% of revenues. Requirements 1. Compute Garys monthly...
-
Calculate the average separation between air molecules and their mean speed, at STP, and estimate the time it would take one molecule to move into the region occupied by another. Assume that air...
-
1. Create and upload a histogram of the salary data for the city of Bell, where each bar width is about 50,000 US dollars. (Data for the histogram is at the bottom). a.) Is the distribution of the...
-
What is the impact of an increase in the price of a substitute on the demand curve?
-
Find the compound interest and future value. Do not round intermediate steps. Round your answers to the nearest cent. Principal Rate Compounded Time $875 3% Annually 10 years The future value is S...
-
How does the intricate interplay between endocrine signaling pathways and cellular receptors regulate the intricate cascade of gene expression, ultimately influencing developmental processes and...
-
Bias in decision-making happens without thought in most decisions. Identify a recent business-related event that was bias evidence in the decision-making process surrounding that event. Briefly...
-
You have been asked by a San Francisco property investment company to create a predictive model that will generate house price estimates for properties they are considering purchasing as rental...
-
Graph the final payoff and value prior to expiry of the following portfolio: Long underlying stock purchased at price So = 100 Long put option at strike price K = 100 1b) Explain the thinking of an...
-
You have been living in the house you bought 9 years ago for $400,000. At that time, you took out a loan for 80% of the house at a fixed rate 20-year loan at an annual stated rate of 7.5%. You have...
-
1) The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a) An inelastic demand b) An elastic demand c) A demand curve that is...
-
Refer to the data in Exercise. In Exercise, Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost-of-capital of 15%. Selected financial information (in thousands of dollars)...
-
MS Enterprises produces three products X1, X2, and X3 from a joint production process. Data on the process are as follows: Required Determine the value for each lettereditem. Product X1 X2 X3 Total...
-
Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An inventory of materials and equipment is on hand at all times so that...
-
Due to the Covid recession of 2020, the U.S. government budget changed from smaller deficits to very large deficits. What impact would this have on the net exports and private sector balances, all...
-
Verify the log-likelihood in equation (16.4) for the Tobit model. In L = = In { 1-0 (x-di)} 1:y=di 122. + (y; - x) 02 (16.4) i:y;>di
-
Verify the likelihood in equation (16.5) for the two-part model. n2. (16.5) -(-)-(-2)/02 L = [] {(p;)" (1 p; )'-'} [[ ( i=1 ri=1
Study smarter with the SolutionInn App