ADMS 2510 Study Guide - Midterm Guide: Earnings Before Interest And Taxes, Arkils Tingstad, Bird Feeder

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aquamarinesalmon656

4 Jun 2015

School

York University

Department

Administrative Studies

Course

ADMS 2510

Professor

Roberto Umana

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ADMS 2510 Full Course Notes

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Exercise 10-9 (20 minutes: actual quantity of. *2,500 units 7. 2 grams per unit = 18,000 grams. 20,000 grams (. 40 per gram . 50 per gram) = -,000 f. . 50 per gram (20,000 grams 18,000 grams) = ,000 u. *2,500 units 0. 4 hour per unit = 1,000 hours. 900 hours ( per hour* per hour) = ,800 u. *10,800 900 hours = per hour. per hour (900 hours 1,000 hours) = -,000 f. Standard labour time per unit (12 minutes 60: number of units manufactured minutes per hour) Total standard hours of labour time allowed Standard direct labour rate per hour . *16,000 units 0. 2 hour per unit = 3,200 hours. 3,400 hours (. 50 per hour* . 00 per hour) = -,700 f. per hour (3,400 hours 3,200 hours) = ,000 u. *,300 3,400 hours = . 50 per hour. 3,400 hours (. 60 per hour* . 00 per hour) = ,040 u. *,640 3,400 hours = . 60 per hour.

Related Questions

Buil Corporation manufactures a single product. The standard cost per unit of product is as follows.

Direct materialsâ2 pounds of plastic at $6 per pound $12

Direct laborâ2 hours at $13 per hour 26

Variable manufacturing overhead 7

Fixed manufacturing overhead 5

Total standard cost per unit $50

The master manufacturing overhead budget for the month based on normal productive capacity of 20,000 direct labor hours (10,000 units) shows total variable costs of $70,000 ($3.50 per labor hour) and total fixed costs of $50,000 ($2.50 per labor hour). Normal productive capacity is 20,000 direct labor hours. Overhead is applied on the basis of direct labor hours. Actual costs for November in producing 9,700 units were as follows.

Direct materials (20,000 pounds) $119,000

Direct labor (19,600 hours) 256,760

Variable overhead 68,800

Fixed overhead 50,000

Total manufacturing costs $494,560

The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

Instructions

(a) Compute all of the materials and labor variances.

(b) Compute the total overhead variance.

(a) Total Materials Variance:

( AQ x AP )	-	( SQ x SP )	=
	-		=
	-		=

Materials Price Variance:

( AQ x AP )	-	( AQ x SP )	=
	-		=
	-		=

Total Materials Variance:

( AQ x AP )	-	( SQ x SP )	=
	-		=
	-		=

Total Labor Variance:

( AH x AR )	-	( SH x SR )	=
	-		=
	-		=

*9,700 x 2

Labor Price Variance:

( AH x AR )	-	( SH x SR )	=
	-		=
	-		=

Labor Quantity Variance:

( AH x SR )	-	( SH x SR )	=
	-		=
	-		=

(b) Total Overhead Variance:

Actual Overhead	-	Overhead Applied	=
	-		=
	-		=

goldzebra102

The? Sudbury, South? Carolina, plant of Shannon Sports Companyhas the following standards for its soccer ball? production:

Standards:	0.1 yard
Material (leather) per soccer ball	$21
Material price per yard	0.40 Hour
Direct labor hours per soccer ball	$11 per hour
Wage rate per direct labor hour	$12 per direct labor hour
Variable support cost rate
Actual results for October:
Used 13500 yards of raw material, purchased for $280,530.00. Paid for 8,200 direct labor hours at $11.30 per hour. Incurred $82,000 of variable support costs Manufactured 25,000 soccer balls

Requirements

Determine the following variances for? October:

?(a)	Total direct material cost variance and indicate whether thevariance is favorable or unfavorable
?(b)	Total direct labor cost variance
?(c)	Total variable support cost variance
?(d)	Direct material price variance
?(e)	Direct material quantity variance
?(f)	Direct labor rate variance
?(g)	Direct labor efficiency variance
?(h)	Variable support rate variance
?(i)	Variable support efficiency variance

AH? = Actual number of direct labor hours

AP? = Actual price per unit of materials

AQ? = Actual quantity of materials used

AR? = Actual wage rate

SH? = Number of direct labor hours allowed given the level ofoutput achieved

SP? = Estimated or standard price per unit of materials

SQ? = Standard quantity of materials allowed for the productionlevel achieved

SR? = Standard wage rate

blackcricket13

Lenci Corporation manufactures and sells a single product. Thecompany uses units as the measure of activity in its budgets andperformance reports. During May, the company budgeted for 5,100units, but its actual level of activity was 5,050 units. Thecompany has provided the following data concerning the formulasused in its budgeting and its actual results for May:

Data used in budgeting:

	Fixed element permonth		Variable element per unit
Revenue		-	$	39.60

Direct labor	$	0	$	5.50
Direct materials		0		15.70
Manufacturing overhead		41,500		1.30
Selling and administrativeexpenses		22,700		0.20
Total expenses	$	64,200	$	22.70

Actual results for May:


Revenue	$	197,810
Direct labor	$	28,565
Direct materials	$	80,265
Manufacturing overhead	$	47,905
Selling and administrativeexpenses	$	22,680

The overall revenue and spending variance (i.e., the variancefor net operating income in the revenue and spending variancecolumn on the flexible budget performance report) for May would beclosest to:

Garrison 16e Rechecks 2018-06-07

$2,750 F

$3,595 F

$3,595 U

$2,750 U

#10

Neubert Corporation manufactures and sells a single product. Thecompany uses units as the measure of activity in its budgets andperformance reports. During December, the company budgeted for5,300 units, but its actual level of activity was 5,340 units. Thecompany has provided the following data concerning the formulasused in its budgeting and its actual results for December:

Data used in budgeting:

	Fixed Element perMonth		Variable element per unit
Revenue		-	$	30.00

Direct labor	$	0	$	3.50
Direct materials		0		10.40
Manufacturing overhead		33,300		1.50
Selling and administrativeexpenses		25,000		0.50
Total expenses	$	58,300	$	15.90

Actual results for December:


Revenue	$	156,340
Direct labor	$	17,980
Direct materials	$	56,566
Manufacturing overhead	$	41,040
Selling and administrativeexpenses	$	28,870

The direct labor in the planning budget for December would beclosest to:

Garrison 16e Rechecks 2018-06-07

$18,690

$18,550

$17,845

$17,980

#16

Pippin Inc. has provided the following data concerning one ofthe products in its standard cost system. Variable manufacturingoverhead is applied to products on the basis of directlabor-hours.

Inputs	Standard Quantity orHours per Unit of Output			Standard Price orRate
Direct materials		5.0	grams	$	7.00	per gram
Direct labor		0.30	hours	$	21.30	per hour
Variable manufacturingoverhead		0.30	hours	$	9.60	per hour

The company has reported the following actual results for theproduct for June:


Actual output		8,500	units
Raw materials purchased		48,100	grams
Actual price of rawmaterials	$	7.70	per gram
Raw materials used inproduction		42,490	grams
Actual direct labor-hours		2,300	hours
Actual direct labor rate	$	21.70	per hour
Actual variable overheadrate	$	9.80	per hour

The labor rate variance for the month is closest to:

$1,020 U

$920 U

$1,020 F

$920 F

ochrewolf599

ADMS 2510 Study Guide - Midterm Guide: Earnings Before Interest And Taxes, Arkils Tingstad, Bird Feeder

ADMS 2510 Full Course Notes

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