Hanshaben Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. Thestandard labor to count and assemble each packet is 0.15 hours at a cost of $17.00 per hour.Johnson Co. budgeted to make 65,000 seed packets but due to high demand, they ended up making73,000 packets. They paid $316,008 for 18,480 hours of packet assembly time.What is their labor efficiency variance for this period? Enter a favorable variance is a positivenumber and an unfavorable variance as a negative number.Enter as a whole number, no commas and no dollar signs.Your Answer:Answer

Labor efficiency variance measures how well the manufacturing workers use their time and skills to…

Answered: Johnson Co. makes organic non-GMO…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Best Birdies produces ornate birdcages. The company's average cost per unit is $18 when it produces 2,200 birdcages. If $5,800 of the total costs are fixed, what is the variable cost of producing each birdcage?
ABC Company is the manufacturer of a low-noise air-purification system. Its current capacity is 10,000 units/month, but ABC received orders totaling 9,000 units each month. Currently, ABC sells its system at a price of $200 per unit, its fixed cost is $500,000/month, and its variable cost is $100/unit. Note that currently, half of ABC’s variable cost is materials, and the other half is labor cost (wages for workers). ABC wants to consider cutting its price by 10% to stimulate demand. If ABC expands its capacity, it will have to lease additional manufacturing machines, each of which will cost $20,000/month to lease and can add 1000 units to ABC’s capacity. All existing workers are already working full-time. So, if ABC expands production, ABC has to either pay existing employees for overtime (1.5 times the regular wages) or hire new workers, who are expected to be paid 90% of the hourly wage of existing workers but produce only 75% of the hourly output of existing workers. (a) What is…
Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. The standard labor to count and assemble each packet is 0.06 hours at a cost of $16.70 per hour. Johnson Co. budgeted to make 65,000 seed packets but due to high demand, they ended up making 71,000 packets. They paid $316,008 for 18,480 hours of packet assembly time. What is their labor cost variance for this period? Enter a favorable variance is a positive number and an unfavorable variance as a negative number. Enter as a whole number, no commas and no dollar signs.
Daily Kneads, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $20,000 for 20,000 pounds of the product. The costs per pound to make this product include: Cost per Pound $0.30 Direct Labor Direct Materials $0.60 $0.70 Allocated Unavoidable Overhead If Daily Kneads outsources, what is the savings (or loss) per pound for the company as a whole? If the amount is a loss include a negative sign (not parentheses) in your answer. "_"
Hot Dog Express (HDE) is currently buying their buns from Buns-For-All for $. 50 a dozen. Each month they purchase 14,000 dozen. HDE is considering making their own buns for cost cutting and quality reasons. They have determined the following costs: materials, $. 20; direct labor, $. 10; variable factory overhead cost, $. 04; and total (existing) fixed costs, $3,000 per month. From an accounting point of view only, should HDE make or buy their buns?
Greener Garden Group produces and sells 21,200 litres of organic lawn and garden fertilizer. The fertilizer, GoGrow, is a favourite among landscaping companies in southern Manitoba. The selling price of GoGrow is $20 per litre, variable costs are $13 per litre, fixed manufacturing overhead costs in the plant total $121,900 per month, and the fixed selling costs total $164,300 per month. Recent supply chain problems have made it difficult for the Greener Garden Group to get the quantity of chemicals needed to produce the fertilizer. Because of this, sales have dropped to 6,360 litres per month and will most likely stay at this level until the supply of chemicals is back to normal. Management expects that the supply chain issues will ease up soon with business returning to normal in two months. However, the CEO of Greener Garden Group thinks the company should fully shut down operations for two months until the supply chain issues are resolved. If the Greener Garden Group does close the…
Greener Garden Group produces and sells 21,200 litres of organic lawn and garden fertilizer. The fertilizer, GoGrow, is a favourite among landscaping companies in southern Manitoba. The selling price of GoGrow is $16 per litre, variable costs are $9 per litre, fixed manufacturing overhead costs in the plant total $121,900 per month, and the fixed selling costs total $164,300 per month. Recent supply chain problems have made it difficult for the Greener Garden Group to get the quantity of chemicals needed to produce the fertilizer. Because of this, sales have dropped to 6,360 litres per month and will most likely stay at this level until the supply of chemicals is back to normal. Management expects that the supply chain issues will ease up soon with business returning to normal in two months. However, the CEO of Greener Garden Group thinks the company should fully shut down operations for two months until the supply chain issues are resolved. If the Greener Garden Group does close the…
The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $32 per unit. Variable costs for the casing are $19 per unit, and fixed cost is $4 per unit. Cotwold executives would like for the Molding Division to transfer 15,000 units to the Assembly Division at a price of $24 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request. Required: Should the Molding Division accept the $24 transfer price proposed by management? Calculate the effect on the Molding Division’s net income if it accepts the $24 transfer price
The Peace Department of Shalom Company uses 5,000 kilograms per month in its production of Peace products. It presently buys all the kilograms of materials it needs from outside supplier at a cost of P100. The Piss Division of Shalom Company manufactures the exact type of material that the Peace Department requires. The Piss Division is operating at its capacity of 15,000 units per month and sells all its output to a local manufacturer at P108 per unit. The following cost data are available for its 15,000 units: Variable production costs 70 All fixed costs 10 If Piss Division has excess capacity and can accommodate all Peace's requests, will Piss accept Peace's offer at P75? Yes or no? Use the underlined words as your choice. Input answers in capital letters.
The Peace Department of Shalom Company uses 5,000 kilograms per month in its production of Peace products. It presently buys all the kilograms of materials it needs from outside supplier at a cost of P100. The Piss Division of Shalom Company manufactures the exact type of material that the Peace Department requires. The Piss Division is operating at its capacity of 15,000 units per month and sells all its output to a local manufacturer at P108 per unit. The following cost data are available for its 15,000 units: Variable production costs All fixed costs 70 10 If Piss Division sells all units to the local manufacturer, will it accept Peace's offer at P75? Yes or no? Use the underlined words as your choice. Input answers in capital letters.
SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce lock show that manufacturing costs total $23.25 per lock. An analysis of this amount indicates that $13.40 of the total cost has a variable cost behavior pattern, and the remainder is an allocation of fixed manufacturing overhead. The normal selling price of this model is $31.00 per lock. A chain store has offered to buy 12,000 ZForce locks from SureLock at a price of $16.25 each to sell in a market that would not compete with SureLock's regular business. SureLock has manufacturing capacity available and could make these locks without incurring additional fixed manufacturing overhead.Required: Calculate the effect on SureLock's operating income of accepting the order from the chain store. If SureLock's costs had not been classified by cost behavior pattern, is it likely that a correct special order analysis would have been made?
Cullumber, Inc. makes computer bags that sell for $30 each. For the coming year, management expects fixed costs to be $239,010. Variable costs are $21 per unit.

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