Required information [The following information applies to the questions displayed below.] Preble Company manufactures o

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Required Information The Following Information Applies To The Questions Displayed Below Preble Company Manufactures O 1 (277.63 KiB) Viewed 26 times

Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs per unit are as follows: Direct materials: 5 kg at $8.00 per kg Direct labour: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour $40.00 28.00 10.00 Total standard cost per unit $78.00 The company planned to produce and sell 25,000 units in March. However, during March the company actually produced and sold 30,000 units and incurred the following costs: a. Purchased 160,000 kg of raw materials at a cost of $7.50 per kg. All of this material was used in production. b. Direct labour: 55,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $280,500. 8. What is the variable overhead efficiency variance for March? (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.)) Variable overhead efficiency variance
Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year $ 40,000 $ 38,000 10,000 Budgeted standard direct labour-hours Actual direct labour-hours Standard direct labour-hours allowed for the actual output 12,000 9,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance
Talia Company produces a single product. The company has set standards as follows for materials and labour: Standard quantity or hours per unit Direct Materials ? kilograms ? per kilogram ? Direct Labour 1.25 hours 10 per hour Standard price or rate. $ $11.25 Standard cost per unit During the past month, the company purchased 3,000 kilograms of direct materials at a cost of $8,250. All of this material was used in the production of 700 units of product. Direct labour cost totalled $6,825 for the month. The following variances have been computed: $ 600 U Materials quantity variance Total materials variance Labour efficiency variance $ 150 F $2,250 F Required: 1. Compute the following for direct labour. a. Standard price per kilogram for materials. b Standard quantity allowed for materials for the month's production. kgs. kgs per unit. c. Standard quantity of materials allowed per unit of product. 2. Compute the following for materials price variance. (Round your answers to 2 decimal places.) a. Actual direct labour cost per hour for the month b. Labour rate variance
Fantastic Feeder Products Inc. manufactures high-quality wooden cutting boards sold to restaurants and gourmet home cooks. One of these boards, the CertiPro II, requires an expensive hardwood. During a recent month, the company manufactured 1,200 CertiPro II cutting boards using 540 metres of hardwood. The hardwood cost the company $2,970. The company's standards for one CertiPro II cutting board are 0.4 metres of hardwood, at a cost of $5.00 per metre. Required: 1-a. What cost for wood should have been incurred to make 1,200 CertiPro II cutting boards? Total standard cost 1-b. How much greater or less is this than the cost that was incurred? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Total variance