Question: The Monroe Corporation sets monthly standard costs using a continuous-improvement approach. In January 2012, the standard direct material cost is $45 per unit and the

The Monroe Corporation sets monthly standard costs using a continuous-improvement approach. In January 2012, the standard direct material cost is $45 per unit and the standard direct manufacturing labor cost is $15 per unit. Due to more efficient operations, the standard quantities for February 2012 are set at 0.980 of the standard quantities for January. In March 2012, the standard quantities are set at 0.990 of the standard quantities for February 2012. Assume the same information for March 2012 as in Exercise 7-24, except for these revised standard quantities.

Required

1. Compute the March 2012 standard quantities for direct materials and direct manufacturing labor (to three decimal places).

2. Compute the March 2012 price and efficiency variances for direct materials and direct manufacturing labor (round to the nearest dollar).

Step by Step Solution

★★★★★

3.45 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Standard quantity input amounts per output unit are Direct Materials pounds Direct Manufacturing L... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

58-B-C-A-B (235).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

The Seneca Corpo-ration sets monthly standard costs using a continuous- improvement approach. In January 2013, the standard direct material cost is $ 54 per unit and the standard direct manufacturing...

Assume the same information for Global Defence as in Exercise 19-14, except that Global Defence uses a 90% incremental unit-time learning model as a basis for predicting direct manufacturing...

Assume the same information for Northern Defense as in Exercise 10-28, except that Northern Defense uses an 85% incremental unit-time learning model as a basis for predicting direct manufacturing...

Continuous improvement the Monroe Corporation sets monthly standard costs using a continuous-improvement approach. In January 2009, the standard direct material cost is $45 par unit and the standard...

Continuous improvement (continuation of 7-24). The Monroe Corporation sets monthly standard costs using a continuous-improvement approach. In January 2012, the standard direct material cost is $45...

ACCT331 - October 2021 Question Three (15 Marks): MID-TERM EXAMINATION- FORM A 6/9 Zamalek Company manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct labor...

Please solve Number 8, 9, & 10 Xavier Company purchases a single product. Variable manufacturing overhead is applied to products on the basis of direct labor hours. The standard costs for one unit of...

Hobart Machines Ltd (HML) manufactures two products Standard and Enhanced, and applies overhead on the basis of direct labour hours. Anticipated overhead and direct labour time for the upcoming...

QUESTION 3 The following standard costs were developed for one of the products of Ferrars Company: Standard Cost Card Per Unit Direct Materials: 4 pounds x $5 per pound Direct Labor: 1.5 hours x $20...

X created a trust, income to D for life, then to B for life, remainder to R. D and A have a joint power to invade corpus for the benefit of any person in the world. If D or A dies, the power is...

1. Are Whole Foods team members likely to experience problems with procedural and/or distributive justice? Explain. 2. Which of the motivational practices are emphasized by Whole Foods in its...

2.125 Refer to Exercise 2.52, in which the ages for the highestpaid 50 CEOs of Americas top 500 companies were given. These data are in the ceodata08 dataset for this book. a. Find the mean and...

The following T-accounts record the operations of Roddick Co.: Required a. Calculate the amount of direct materials purchased during the period. b. Calculate the direct materials used in production...

Lee Chang opened Lee's Window Washing on July 1, 2014. In July, the following transactions were completed: July 1 Lee invested $20,000 cash in the business. 1 Purchased a used truck for $25,000,...

Lee Chang opened Changs Cleaning Service on July 1, 2010. During July the following transactions were completed. July 1 Chang invested $20,000 cash in the business. 1 Purchased used truck for $9,000,...

Lee Chang opened Lee's Window Washing on July 1, 2017. In July, the following transactions were completed: July 1 Invested $20,000 cash in the business. 1 Purchased a used truck for $25,000, paying...

At December 31, 2014, Giselle Company made an accrued expense adjusting entry of $1,700 for salaries. On January 4, 2015, it paid salaries of $3,000: $1,700 for December salaries and $1,300 for...

What is the distinction between Hg 2+ and Hg 2 2+ ?

List four reasons for using standard costs.

How might a manager gain insight into the causes of a flexible-budget variance for direct materials?

List three causes of a favorable direct materials price variance?

Given the following models and corresponding OLS output, where Commodity Housing Price (P) One Year Lagged Housing Price (P t-1 ) Commodity Housing Price in the Secondary Housing Market (Ps)...

Exercise 3-3 Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3] Primare Corporation has provided the following data concerning last month's manufacturing operations, Purchases of...

Erkkila Inc. reports that at an activity level of 6,800 machine-hours in a month, its total variable inspection cost is $426,530 and its total fixed inspection cost is $197,309. What would be the...