- Becton Labs Incorporated Produces Various Chemical Compounds For Industrial Use One Compound Called Fludex Is Prepa 1 (54.48 KiB) Viewed 36 times
- Becton Labs Incorporated Produces Various Chemical Compounds For Industrial Use One Compound Called Fludex Is Prepa 2 (18.3 KiB) Viewed 36 times
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- Becton Labs Incorporated Produces Various Chemical Compounds For Industrial Use One Compound Called Fludex Is Prepa 4 (16.71 KiB) Viewed 36 times
Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The
company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or Standard Price or Hours Rate 2.00 ounces 0.50 hours $ 30.00 per ounce $ 14.00 per hour $ 3.40 per hour 0.50 hours Standard Cost Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit During November, the following activity was recorded related to the production of Fludex: Required: 1. For direct materials: $ 60.00 7.00 1.70 $ 68.70 a. Materials purchased, 10,000 ounces at a cost of $287,000. b. There was no beginning inventory of materials; however, at the end of the month, 3,000 ounces of material remained in ending inventory. c. The
company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,700. e. During November, the
company produced 3,400 units of Fludex. a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the
company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 20 technicians employed in the production of Fludex consisted of 4 senior technicians and 16 assistants. During November, the
company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances.
Complete this
question by entering your answers in the tabs below. Req 1A Req 18 Reg 2A Req 28 Req 3 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance <Reg 1A Req 1B >
Complete this
question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 2B Req 3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance. < Req 1B Req 28 >
Reg 1A Req 18. Req 28 Variable overhead rate variance Variable overhead efficiency variance Reg 2A Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Req 3 < Req 2B Req 3