Reference no: EM13340917
Question
Penray uses a standard costing system in evaluating production operations .The company has had a number of problems with suppliers and employees in recent times so they hired a new production supervisor ,David Smith.David Smith has been working for the company for three months now and the employees appear much happier with the company.
The director of manufacturing commented that employeesappear happier after Smith had been there for the last three months and with the changes in suppliers of material and various morale boosting activities the overall total labour and material variances being low he seemed to have transformed the companyand to have considerably improved its performance from a company which has always struggled to achieve its cost targets and achieve positive material and labour variances .
The following additional information is provided:
- The company purchased and consumed 90,000 kilograms of direct materials at $7.90 per kilogram and paid $15.50 per hour for 42,000 direct labour hours
- Total units produced were 19,200
-The company's standard costs show that each completed unit required 4.4 kilograms of direct materials at $8.50 per kilogram and 2.5 direct labour hours at $14 per hour.
Required :
1.Calculate the direct material and the direct labour variances.
2.Based on your answer to part 1 should the management of Penray be concerned about its variances? Explain why.
3.Are things going as smoothly as the director of manufacturing believes?
Evaluate the company's variances and determine whether or not the changes in suppliers and the morale boosting activities appear to be working.Explain why.
|
Determine the mass of the tackler onto the receiver
: The tackler holds onto the receiver, and the two move off together with a velocity of +1.6 m/s. The mass of the tackler is 115 kg. Assuming that momentum is conserved, find the mass of the receiver.
|
|
What is the thrust of the thruster
: A 70-kg astronaut floating in space in a 110-kgMMU (manned maneuvering unit) experiences an acceleration of 0.029 m/s2 when he fires one of the MMU's thrusters. What is the thrust of the thruster
|
|
Find out the poh of the solution that is produced
: Determine the pOH (to two decimal places) of the solution that is produced by mixing 2.34 mL of 7.82×10-3 M MgO with 60.9 mL of 3.77×10-2 M MgH2.
|
|
Declaration and payment of the cash dividend
: Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend.
|
|
Calculate the direct material and the direct labour variance
: Evaluate the company's variances and determine whether or not the changes in suppliers and the morale boosting activities appear to be working.Explain why.
|
|
Explain what happens when excess sulfuric acid is added
: According to the following chemical reaction, what happens when excess sulfuric acid is added. 2CrO42- (aq, yekllow) + 2H3O (aq) Cr2O72- (aq, orange0 + 3H2O (l)
|
|
Calculate the kinetic and potential energy
: One end of a stretched string is moved transversely at constant velocity Vy for a time T, Calculate the kinetic and potential energy energies associated with the pulse
|
|
What is coefficient of friction between rock and icy ground
: A 70-kg climber is hanging by a rope off the edge of a cliff, with the top end of the rope tied to a 200-kg rock. However, the rock is sitting on an icy horizontal surface,
|
|
Advantages and disadvantages of a standard costing system
: Construct an Excel or other spreadsheet to demonstrate how the solution to part 1 would change if the following information changes:the actual labour rates were $27.00, $22.90 and $17.00 for labour classes 3,2 and 1 respectively.
|