question archive c) What is the standard quantity of materials allowed for actual production (SQAJI? d) What is the standard labor hours allowed for actual production {SBA}? e) Compute the following variances for March: 1
c) What is the standard quantity of materials allowed for actual production (SQAJI? d) What is the standard labor hours allowed for actual production {SBA}? e) Compute the following variances for March: 1
Subject:AccountingPrice:9.82 Bought3
c) What is the standard quantity of materials allowed for actual production (SQAJI?
d) What is the standard labor hours allowed for actual production {SBA}?
e) Compute the following variances for March:
1. Direct materials price variance {based on quantity purchased]
2. Direct materials efficiency variance
3. Direct labor price variance
4 Direct labor efficiency variance
f) Prepare journal entries to record the following the transactions and variances under a standard costing system: 1. Materials purchases
2. Materials used in production
3. Direct labor
Foster Company has the following standards per finished unit for its product:
Direct materials 3 lbs. @ $4.00 per lb. $12.00
Direct labor 2 hrs. @ $13.00 per hr. 26.00
Manufacturing overhead:
Variable 2 Direct labor Hrs. @ $5.00 10.00
Fixed 2 DLH @ $7.00 per DLH 14.00
Total standard cost per unit $62.00
Results for March were:
Budgeted units of production 4,000
Actual units produced 3,800
Direct materials purchases 14,000 lbs. @ $3.75 per lb.
Direct materials used in production 12,600 lbs.
Direct labor incurred 7,200 hrs. @ $13.50 per hr.
Actual variable overhead $39,400
Budgeted fixed overhead $ ?
Actual fixed overhead $52,700 a.
a) Compute the total budgeted fixed overhead. (Hint: The FOH rate was calculated by dividing budgeted FOH by budgeted DLH, so use the rate to back in to the budgeted FOH.)
b) Prepare a flexible budget analysis for March:
1. Compute the static budget amounts for direct materials, direct labor, variable and fixed overhead. (Hint: Based on budgeted volume and budgeted rates)
2. Compute the flexible budget amounts for direct materials, direct labor, variable and fixed overhead. (Hint: Based on actual volume and budgeted rates)
3. Compute the sales volume variances and indicate For U. (Hint: Compare static and flexible budgets.)
4. Compute the flexible budget variances and indicate For U. (Hint: Compare flexible budget to actual.)
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Question a
Total budgeted fixed overhead Total budgeted fixed overhead Total budgeted fixed overhead
Question b
Question 1 Static Budget Direct materials {4000*12) Direct labor {4000*26) Variable overhead {4000*10) Fixed overhead {4000*14] Total
Question 2 Flexible budget Direct materials {3800*12) Direct labor {3800*26) Variable overhead {3800*10) Fixed overhead same with static Tota l {Budgeted units of production x standard hours)" cost per hour {4000*2*7) 5e000 4&000 10¢000 40000 50000 24a000 45500 98800 38000 50000 23s400
Question 3 Cannot be determined - no selling price given
Question 4 Flexible Static Variance Direct materials 45,600 48,000 2,400 Unfavorable Direct labor 98,800 104,000 5,200 Unfavorable Variable overhead 38,000 40,000 2,000 Unfavorable
Question c
Standard quantity of materials = (Actual quantity x standard material per unit) Standard quantity of materials = (3800*3) Standard quantity of materials = 11400
Question d
Standard hours allowed = (Actual quantity x standard hours per unit) Standard hours allowed = (3800*2) Standard hours allowed = 7600
Question e
Actual quantity X Actual price Total 14000 x S 3.75 $ 52,500 Actual quantity X standard price 14,000 4 56,000 Direct material price variance 3,500 Favorable Actual quantity X standard price Total 12,600 x S 50,400 Standard quantity x standard price 11,400 4 45,600 Direct material quantity variance S 4,800 unfavorable Actual hours X actual rate Total 7200 x 13.50 $ 97,200 Actual hours X standard rate 7,200 13 93,600 Direct labor rate vaiance 3,600 unfavorable Actual hours X standard rate Total 7200 X $ 13.00 $ 93,600 Standard hours X 7,600 13 98,800 Direct labor efficiency variance 5,200 Favorable
Question f
Account Title Debit Credit Inventory $ 56,000 Direct material price variance $ 3,500 Accounts payable $ 52,500 Work in proces $ 45,600 Direct material quantity variance $ 4,800 Inventory $ 50,400 Work in process $ 98,800 Direct labor rate vaiance $ 3,600 Direct labor efficiency variance $ 5,200 Cash $ 97,200
Please see attached file
