E9-9 (Algo) Calculating Direct Labor Variances [LO 9-4] Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($519,680 +928,000 units) Parker Plastic had the following actual results for the past year. Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,220,000 12,300,000 $ 8,610,000 326,000 $ 3,912,000 $1,240,000 $ 383,000 Standard Quantity 14 square foot 0.25 hour Standard Price (Rate) $ 0.80 per square foot $12.40 per hour 0.25 hour $ 1.60 per hour Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct Labor Rate Variance Direct Labor Efficiency Variance Standard Unit Cost $ 11.20 3.10 0.40 0.56

E9-9 (Algo) Calculating Direct Labor Variances [LO 9-4] Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($519,680 +928,000 units) Parker Plastic had the following actual results for the past year. Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,220,000 12,300,000 $ 8,610,000 326,000 $ 3,912,000 $1,240,000 $ 383,000 Standard Quantity 14 square foot 0.25 hour Standard Price (Rate) $ 0.80 per square foot $12.40 per hour 0.25 hour $ 1.60 per hour Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct Labor Rate Variance Direct Labor Efficiency Variance Standard Unit Cost $ 11.20 3.10 0.40 0.56

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured 115,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $3,700 and a favorable direct labor time variance of $10,275. What was the total actual cost of direct labor incurred during the period?
Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
3. La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Category Quantity of direct labor used Actual rate for direct labor Amount 5,050 hrs. $16.75 per hr. 1,000 bicycles Bicycles completed in April Standard direct labor per bicycle 5.4 hrs. Standard rate for direct labor $16.00 per hr. a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. b. How much direct labor should be debited to Work in Process?
S E9-9 (Algo) Calculating Direct Labor Variances [LO 9-4] Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($559,200 932,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used: Cost of plastic purchased and used or hours worked Number of Direct labor cost Variable overhead cost Fixed overhead coat 1,260,000 12,500,000 $ 11,250,000 Direct Labor Rate Variance Direct Labor Efficiency Variance 330,000 $4,026,000 $ 1,480,000 $ 387,000 FEE Standard Quantity 12 square foot Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for…
A company's standard is 2 hours of direct labor per unit at a rate of $45 per hour. The company shows the following for the year. Actual units produced Actual direct labor used 5,120 units 10,040 hours Actual cost of direct labor used AH = Actual Hours SH=Standard Hours AR= Actual Rate SR Standard Rate Complete this question by entering your answers in the tabs below. Required A Required B Compute the direct labor rate variance, direct labor efficiency variance, and the total direct labor variance. For each variance, indicate whether it is favorable or unfavorable. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost $ $ 471,880 0 $ 0 0 Standard Cost
E9-9 (Algo) Calculating Direct Labor Variances [LO 9-4] Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: rint Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($308,040 + 906,000 units) Parker Plastic had the following actual results for the past year:, Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,220,000 11,200,000 $ 6,720,000 305,000 $ 3,233,000 $ 540,000 $ 361,000 D ferences Required: Standard Quantity Standard Price (Rate) Standard Unit Cost 8 square foot 0.26 hour 0.26 hour $ 0.63 per square foot $ 10.50 per hour $ 5.04 2.73 $ 1.50 per hour 0.39 0.34 Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate…
15. Reems Corporation uses a standard cost system. Direct labor information for Product E for the month of November is as follows: Standard labor price, P6.10 per hour Actual rate paid, P6.00 per hour Standard quantity allowed for actual production, 1,500 hours Labor efficiency variance, P600 unfavorable What is the actual hours worked? Group of answer choices 1,402 1,400 1,600 1,598
E9-9 (Algo) Calculating Direct Labor Variances [LO 9-4] Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($364,800 +912,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Required: 1,060,000 11,500,000 $ 10,350,000 310,000 $ 3,565,000 $ 780,000 $ 367,000 Standard Unit Standard Quantity 13 square foot 0.3 hour 0.3 hour Standard Price (Rate) $ 0.93 per square foot $ 10.90 per hour Cost $ 12.09 3.27 $ 2.40 per hour 0.72 0.40 Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations.…
The controller of ABC Company that produces face masks has requested a quick estimate of the manufacturing supplies needed for its plant for the month of April. When production is expected to be at 470,000 units. Their high-low method used in estimating manufacturing supplies determined that fixed costs part of expenses is P70,560 and the variable cost per unit is P1.45 per unit. How much is the estimated manufacturing supplies for April? 1. P 652,500 2. P 681,500 3. P 749,180 4. P 752,060 O 1 O 2 3 O 4
Q3. A company follows the system of standard costing. The records of the company reveal the following information for the month of May: Budgeted Actual Number of man-hours Number of working days 8000 8600 20 22 Overhead rate per hour { 1.00 Hours per unit of output 20 Fixed Overheads incurred {7,200 Number of units produced 450 units For the month of May, calculate the following variances for fixed overheads: (1) (ii) Overhead Cost variance Overhead Volume variance (iv) (v) (vi) Overhead Efficiency variance Overhead Capacity variance Overhead Budget variance Calendar variance