Solution-Calculate direct materials cost and efficiency

Calculate direct materials cost and efficiency variances

Assignment Help Cost Accounting

Reference no: EM131191524

This continues the Davis Consulting, Inc. situation from Problem P22-56 of Chapter 22. Assume Davus gas created a standard cost card for each job, Standard direct materials include14 software packages a cost of $900 per package. Standard direct labor costs per job include 90 hours at $120 per hour. Davis plans on completing 12 jobs during March 2013. Actual direct materials costs for March included 90 software packages at a total cost of $81,450. Actual direct labor costs included 100 hours per job at an average rate of $125 per hour. Davis completed all 12 jobs in March.

Requirements

1. Calculate direct materials cost and efficiency variances.

2. Calculate direct labor cost and efficiency variances.

3. Prepare journal entries to record the use of both materials and labor for March for the company.

Reference no: EM131191524

Questions Cloud

Prepare a bill of activities for the activity costs : Prepare a bill of activities for the activity costs. What is the difference between the product unit cost you computed using the traditional approach and the one you computed using ABC?

Determine the compressive stress in the column : A hollow circular mild steel column of external diameter 300 mm and internal diameter of 250 mm carries an axial load of 1500 kN. Determine the compressive stress in the column

What upgrade options exist for moving from server : What upgrade options exist for moving from Server 2008 (R2) to Server 2012? What limitations or caveats should be considered when upgrading? Would you typically recommend a clean install or an in-place upgrade when attempting to move a service fr..

What are the total costs for an output : a. Assuming the total costs per day C is linearly related to the total output per day (X), write an equation relating these two quantities. b. What are the total costs for an output of 12 boards per day?

Calculate direct materials cost and efficiency variances : Calculate direct materials cost and efficiency variances. Calculate direct labor cost and efficiency variances. Prepare journal entries to record the use of both materials and labor for March for the company.

Calculate the price of elasticities of demand : Sales are 3,100 at a price of $200 and 2,400 at a price of $300. Calculate the price of elasticities of demand using $200 as the base value; then use $300 as the base value. Calculate the arc price elasticity and compare the three calculations. Ho..

What is green thumbs target full product cost : Green Thumb's owners want to earn a 10% return on investment on the company's assets. What is Green Thumb's target full product cost? Given Green Thumb's current costs, will its owners be able to achieve their target profit?

How much difference in the computed settlements : How much difference in the computed settlements is there in Problem 8.44 if the Westergaard theory is used instead of Boussinesq theory ?

Calculate the percentage change in visits percentage : Calculate the percentage change in visits percentage change in price and the price elasticity of demand using 640 and 40 as the denominators for percentage change calculations

User Account

All Pages

Calculate direct materials cost and efficiency variances

Reference no: EM131191524

Reference no: EM131191524

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT