C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard 60 inches Price Standard 53.50 per inch $20 per hour Direct Materials 3 hours Direct Labor During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.25 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 825 hours at an average rate of $22 per hour. Compute the labor price variance for September. Multiple Choice $1,710U $1,650U $1,710F $1,650F

C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard 60 inches Price Standard 53.50 per inch $20 per hour Direct Materials 3 hours Direct Labor During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.25 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 825 hours at an average rate of $22 per hour. Compute the labor price variance for September. Multiple Choice $1,710U $1,650U $1,710F $1,650F

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

See similar textbooks

Similar questions

Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Erle Company manufactures a moble fitness device called the JoggIng Mate. The company uses standards to control Its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Rate Standard per Hour $6.00 Standard Hours Cost 27 minutes $2.70 During August, 9,690 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $56,202 for the month. Requlred: 1. What Is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 20,000 Jogging Mates? 3. What Is the labor spending varlance? 4. What is the labor rate varlance and the labor efficiency varlance? 5. The budgeted varlable manufacturing overhead rate is $4.10 per direct labor-hour. During August, the company Incurred $48,450 in varlable manufacturing overhead cost. Compute the varlable overhead rate and efficiency varlances for the month. (For requlrements 3 through 5, Indicate the…
C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard Price Standard $3.25 per inch Direct Materials 60 inches Direct Labor During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.50 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 855 hours at an average rate of $22 per hour. 3 hours $20 per hour Compute the materials quantity variance for September. Multiple Choice $3,500U $3.500F $3.250F $3.250U
C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard Price Standard $3.25 per inch Direct Materials 60 inches Direct Labor During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.50 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 855 hours at an average rate of $22 per hour. 3 hours $20 per hour Compute the materials price variance for September. Multiple Choice $4 750U $4.375U $4,375F $4.750F
C-Cubed uses an activity-based costing system for its Fit-Right-Bike. C-Cubed's direct labor rate was $20/hr. The following information is available for the Fit-Right-Bike: Activity Cost Pool Estimated Total Overhead Cost Expected Total Activity Actual Total Activity $10,000 $20,000 $10,000 Custom Design Process 200 custom designs 250 designs Supporting Direct Labor 100 hours 200 hours Customer Service 4 customers 5 customers Bikes-R-Us Selling Price Per Unit 100 bikes sold $1,500 $400 Direct Materials Per Bike Direct Labor-Hours Per Bike 30 hours 100 designs 25 hours Custom Designs Supporting Direct Labor Calculate the customer margin for Bikes-R-Us. Multiple Choice $41,500 $11,500 $7,500 $37,500
Sardi Incorporated is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 12,600 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 8.40 Direct labor 5.40 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 3.20 Unit product cost $ 18.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 35% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 1 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 2 minutes on this machine and that has a contribution margin of $4.80 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the…
Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost system to help control costs and has established the following standards for the Brainbuster toy: Direct materials:7 diodes per toy at $0.32 per diode Direct labor: 1.5 hours per toy at $6.90 per hour During August, the company produced 5,500 Brainbuster toys. Production data on the toy for August follow: Direct materials: 79,000 diodes were purchased at a cost of $0.29 per diode. 30,875 of these diodes were still in inventory at the end of the month. Direct labor: 8,850 direct labor-hours were worked at a cost of $65,490. Required: 1. Compute the following variances for August: (Input all amounts as positive values. Do not round your per unit rates, round other intermediate calculations and your final answer to nearest whole dollar. Leave no cells blank - be certain to enter "O" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and…
Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,100 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 8.90 Direct labor 5.90 Variable manufacturing overhead 1.70 Fixed manufacturing overhead 3.70 Unit product cost $ 20.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 20% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 2 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 4 minutes on this machine and that has a contribution margin of $5.30 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the…
The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,170 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.08 each. The following cost information is provided Direct Materials per unit $5.26 Direct Labor per unit $7.30 Variable Factory Overhead per unit $2.50 Fixed Factory Overhead per unit $7.50 How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves? Enter your answer rounded to the nearest whole number. Don't enter dollar signs or commas.
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours 27 minutes Standard Rate per Hour $6.00 During August, 9,540 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $56,286 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,600 Jogging Mates? 3. What is the labor spending variance? Standard Cost $2.70 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $47,700 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate…
The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,054 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.29 each. The following cost information is provided Direct Materials per unit $5.71 Direct Labor per unit $7.30 Variable Factory Overhead per unit $2.50 Fixed Factory Overhead per unit $7.50 How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves? Enter your answer rounded to the nearest whole number. Don't enter dollar signs or commas. ch ASUS F3 f5 E3 f6 [X f7 f8 f10 f12 & 3 4 7. 8. T. Y U D F G JK L %24
Erle Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: standard Hours 30 minutes Standard Rate per Hour $ 5.80 standard Cost $ 2.90 During August, 10,310 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $58,767 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,200 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,200 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company Incurred $51,550 In variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, Indicate…