10 New Motion Ltd. manufactures a single product which has selling price is £ 120 per unit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per unit 60 Directlabour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per hour 10 Fixed overheads 5 hours @ £1 per hour 5 90 Actual figures for the month of September are as follows:Production 1, 200 units Direct material 23,000 units @ £ 4 per unit Direct Wages 3, 500 hours @ £ 5.2 Variable overheads £ 11, 000 Fixed overheads £6,000 Required: Calculate thematerial, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the variances.III. Sun Flower Hotel in Washington prepare the Budget for the first quarter of 2018. Data concerning the company's operations in August appear below: Budget Actual BudgetBudget Results for Rooms Rent$ 60,000 $ 74,000 Variable Expenses: Wages and300 350 Revenue ($ 200).salaries6,000 6,800 Powerexpenses18,000 19,400 Facility Supports3,000 4,000 Fixed Expenses: Depreciation on Facilities Depreciation on Building12,000 13,000 Total expense43,500 47,700 Net operating income$ 16,500 $ 26,300 Required: 1. Prepare a flexible budget and performance report for first quarter of 2018 2. Which of the variancesshould be of concern to management? Explain.4,500 4, 500 Office

New Motion Ltd. manufactures a single product which has selling price is £ 120 per unit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per un labour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per hour 10 Fixed overheads 5 hours @ £1 per hour 590 Actual figures for the month of September are Production 1, 200 units Direct material 23,000 units @ £ 4 per unit Direct Wages 3,500 hours @ £ 5.2 Variable overheads € 11,000 Fixed overheads £ 6,000 Required: Calo material, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the III. Sun Flower Hotel in Washington prepare the Budget for the first quarter of 2018. Data concerning the company's operations in August appear below: Budget Actual Budget Results for Rooms Rent. $ 60,000 $ 74,000 Variable Expenses: Wa salaries 300 350 Revenue ($ 200) 18,000 19,400 Facility Supports 6,000 6,800 Power expenses 3,000 4,000 Fixed Expenses: Depreciation on Facilities Depreciation on Building. 12,000 13,000 Total expense... 4,500 4, 500 C 43,500 47,700 Net operating income

New Motion Ltd. manufactures a single product which has selling price is £ 120 per unit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per un labour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per hour 10 Fixed overheads 5 hours @ £1 per hour 590 Actual figures for the month of September are Production 1, 200 units Direct material 23,000 units @ £ 4 per unit Direct Wages 3,500 hours @ £ 5.2 Variable overheads € 11,000 Fixed overheads £ 6,000 Required: Calo material, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the III. Sun Flower Hotel in Washington prepare the Budget for the first quarter of 2018. Data concerning the company's operations in August appear below: Budget Actual Budget Results for Rooms Rent. $ 60,000 $ 74,000 Variable Expenses: Wa salaries 300 350 Revenue ($ 200) 18,000 19,400 Facility Supports 6,000 6,800 Power expenses 3,000 4,000 Fixed Expenses: Depreciation on Facilities Depreciation on Building. 12,000 13,000 Total expense... 4,500 4, 500 C 43,500 47,700 Net operating income

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 10E: Standard unit cost and journal entries The normal capacity of Algonquin Adhesives Inc. is 40,000...

See similar textbooks

Similar questions

Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Standard unit cost and journal entries The normal capacity of Algonquin Adhesives Inc. is 40,000 direct labor hours and 20,000 units per month. A finished unit requires 6 lb of materials at an estimated cost of 2 per pound. The estimated cost of labor is 10.00 per hour. The plant estimates that overhead (all variable) for a month will be 40,000. During the month of March, the plant totaled 34,800 direct labor hours at an average rate of 9.50 an hour. The plant produced 18,000 units, using 105,000 lb of materials at a cost of 2.04 per pound. 1. Prepare a standard cost summary showing the standard unit cost. 2. Make journal entries to charge materials and labor to Work in Process.
Each unit requires direct labor of 2.2 hours. The labor rate is $11.50 per hour and next years direct labor budget totals $834.900. How many units are included in the production budget for next year?
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
A company produces and sells a single product, the standard unit cost details of which are as follows: Direct material: 2 kilos at N$4.5 per kilo Direct labour: 3 hours at N$5 per hour Variable overhead: 3 hours at N$3 per hour The total overhead is budgeted at N$90 000 per month and is absorbed on a rate per unit basis. The budgeted output per month is 15 000 units The product has a standard selling price of N$50 per unit The following activity took place during January and February January February sales 14 000 units 16 000 units production 16 000 units 14 500 units There is an opening stock on 1 January of 3000 units Required: (a) Calculate the standard cost and profit for one unit of output (b) Prepare profit statements for each month using (i) Marginal costing (ii) Absorption costing
A company produces and sells a single product, the standard unit cost details of which are as follows; Direct material 2 kilos * N$4.5 per kilo Direct labour 3 hours * N$5 per hour Variable overhead 3 hours * N$3 per hour The total fixed overhead is budgeted at N$ 90 000 per month and is absorbed on a rate per unit basis. The budgeted output per month is 15 000 units. The product has a standard selling price of N$50 per unit. The following activity took place during January and February; January February Sales 14 000 units 16 000 units Production 16 000 units 14 500 units There is an opening stock on 1 January of 3000 units. Required: Calculate the standard cost and profit for one unit of output Prepare the profit statements for marginal and absorption costing for the month
New Motion Ltd. manufactures a single product which has selling price is £ 120 per unit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per unit 60 Direct labour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per hour 10 Fixed overheads 5 hours @ £1 per hour 590 Actual figures for the month of September are as follows: Production 1,200 units Direct material 23,000 units @ £ 4 per unit Direct Wages 3,500 hours @ £ 5.2 Variable overheads £ 11,000 Fixed overheads £ 6,000 Required: Calculate the material, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the variances.
A company produces and sells a single product, the standard unit costs details of which are the follows: Direct Material 2 kilos x N$4.5 per kilo Direct Labour 3 hours x N$5 per hour Variable Overhead 3 hours x N$3 per hour The total fixed overhead is budgeted at N$90,000 per month and is absorbed on a rate per unit basis. The budgeted output per month is 15,000 units. The product has a standard selling price of N$50 per unit. The following activity took place during January and February: January February Sales 14,000 units 16,000 units Production 16,000 units 14,500 units There is an opening stock on 1 January of 3,000 units. Required: (a) Calculate the standard cost and profit for one unit of output (b) Prepare profit statements for each month using (i) Marginal costing (ii) Absorption…