Sunland Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. Materials price variance $1,230 U Labor quantity variance $770 U Materials quantity variance 780 F Overhead variance 700 U Labor price variance 540 U In addition, 8,650 units of product were sold at $8 per unit. Each unit sold had a standard cost of $3. Selling and administrative expenses were $7,040 for the month. Prepare an income statement for management for the month ended January 31, 2025. SUNLAND COMPANY Income Statement

Sunland Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. Materials price variance $1,230 U Labor quantity variance $770 U Materials quantity variance 780 F Overhead variance 700 U Labor price variance 540 U In addition, 8,650 units of product were sold at $8 per unit. Each unit sold had a standard cost of $3. Selling and administrative expenses were $7,040 for the month. Prepare an income statement for management for the month ended January 31, 2025. SUNLAND COMPANY Income Statement

Name: Sunland Company uses a standard cost accounting system. During Januar
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Description: Sunland Company uses a standard cost accounting system. During January, the company reported the following manufacturingvariances.Materials price variance$1,230 ULabor quantity variance$770 UMaterials quantity variance780 FOverhead variance700 ULabo

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...

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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?
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Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Smith Industries bought 15,500 pounds of material in the current period. There was a $250 unfavorable direct materials price variance. A. How much in total did Sitka pay for the 15,500 pounds? B. What is the direct materials quantity variance? C. What is the total direct material cost variance? D. What ii 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance? E. It there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,500 pounds of material?
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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?
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Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.