During June, Fraser Company's material purchases amounted to 6,900 pounds at a price of $9.00 per pound. Actual costs incurred in the production of 1,000 units were as follows: $78,604 ($ 17.20 per hour) $ 26,820 ($9.00 per pound) The standards for one unit of Fraser Company's product are as follows: Direct labor: Direct material: Direct labor: Quantity, 3.20 hours per unit Rate, $17.00 per hour Direct material: Quantity, 2.5 pounds per unit Price, $8.50 per pound Required: Compute the following variances for the month of June. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" or no effect (i.e., zero variance). 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance 27

During June, Fraser Company's material purchases amounted to 6,900 pounds at a price of $9.00 per pound. Actual costs incurred in the production of 1,000 units were as follows: $78,604 ($ 17.20 per hour) $ 26,820 ($9.00 per pound) The standards for one unit of Fraser Company's product are as follows: Direct labor: Direct material: Direct labor: Quantity, 3.20 hours per unit Rate, $17.00 per hour Direct material: Quantity, 2.5 pounds per unit Price, $8.50 per pound Required: Compute the following variances for the month of June. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" or no effect (i.e., zero variance). 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance 27

Name: Urmila ben During June, Fraser Company's material purchases amounted t
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Description: Urmila ben During June, Fraser Company's material purchases amounted to 6,900 pounds at a price of $9.00 per pound. Actualcosts incurred in the production of 1,000 units were as follows:$78,604 ($17.20 per hour)$ 26,820 ($9.00 per pound)The standards

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
During March, the following costs were charged to the manufacturing department: $22,500 for materials; $45,625 for labor; and $50,000 for manufacturing overhead. The records show that 40,000 units were completed and transferred, while 10,000 remained in ending inventory. There were 45,000 equivalent units of material and 42,500 units of conversion costs. Using the weighted-average method, prepare the companys process cost summary for the month.
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
During June, Danby Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor: $116,745 ($18.10 per hour)Direct material: $30,660 ($7.30 per pound) The standards for one unit of Danby Company’s product are as follows: Direct labor: Direct material:Quantity, 3 hours per unit Quantity, 2 pounds per unitRate, $18 per hour Price, $7 per pound Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
During June, Danby Company's material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows: Direct labor: $137,280 ($19.20 per hour) $ 43,350 ($8.50 per pound) Direct material: The standards for one unit of Danby Company's product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Rate, $19.10 per hour Quantity, 3 pounds per unit Price, $8.20 per pound Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) Direct-material price variance Unfavorable Direct-material quantity variance Unfavorable Direct-material purchase price variance Unfavorable Direct-labor rate variance Unfavorable Direct-labor efficiency variance Unfavorable
During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows: Direct labor: $ 137,280 ($19.20 per hour) Direct material: $ 43,350 ($8.50 per pound) The standards for one unit of Danby Company’s product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $19.10 per hour Price, $8.20 per pound
During June, Danby Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor: $116,745 ($18.10 per hour)Direct material: $30,660 ($7.30 per pound) The standards for one unit of Danby Company’s product are as follows: Direct labor: Direct material:Quantity, 3 hours per unit Quantity, 2 pounds per unitRate, $18 per hour Price, $7 per pound Refer to the data given above. Draw diagrams depicting the direct-material and direct-labor variances similar to the diagrams in Exhibits 10–2, 10–3, and 10–4.
O During June, Fraser Company's material purchases amounted to 5,100 pounds at a price of $8.25 per pound. Actual costs incurred in the production of 1,000 units were as follows: Direct labor: Direct material: $ 90,396 ($18.6 per hour) $ 24,420 ($8.25 per pound) The standards for one unit of Fraser Company's product are as follows: Direct labor: Quantity, 2.9 hours per unit Rate, $18.4 per hour Direct material: Quantity, 1.5 pounds per unit Price, $7.75 per pound Required: Compute the following variances for the month of June. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) 1. Direct-material price variance 2 Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance
During June, Danby Company's material purchases amounted to 10,920 pounds at a price of $5.30 per pound. Actual costs incurred in the production of 2,100 units were as follows: Direct labor: Direct material: $74,693 ($11.30 per hour) $45,633 ($5.30 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Quantity, 3 hours per unit Rate, $11.00 per hour Direct Material: Quantity, 4 pounds per unit Price, $5.10 per pound ok at Required: Fill in the amounts in the tables below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no "Actual Price" and "Standard Price" to 2 decimal places.) Direct-Material Price and Quantity Variances Actual Material Cost Projected Material Cost Standard Material Cost Actual Quantity Actual Price Actual Quantity Standard…
During June, Fraser Company's material purchases amounted to 5,100 pounds at a price of $8.25 per pound. Actual costs incurred in the production of 1,000 units were as follows: Direct labor: $90,396 ( $18.60 per hour) Direct material: per pound
a) During June, Spencer Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows:Direct Labour: $116,745 ($18.10 per hour)Direct Materials: $ 30,660 ($ 7.30 per pound)The standards for one unit of Spencer Company’s product are as follows:Direct Labour Direct MaterialQuantity, 3 hours per unit Quantity, 2 pounds per unitRate, $18 per hour Price, $7 per poundCompute the direct-material price and quantity variances and the direct-labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable