Compute arrow direct material variances

Assignment Help Accounting Basics
Reference no: EM131881233

Problem - Straightforward variance analysis

Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows.

Direct materials: 4 units @ $6.50 $26.00

Direct labor: 8 hours @ $8.50 68

Variable factory overhead: 8 hours @ $7.00 56

Fixed factory overhead: 8 hours @ 2.5 20

Total standard cost per unit $170.00

The following information pertains to activity for December:

  • Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations.
  • Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity.
  • Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year.
  • Actual production amounted to 6,500 completed units.

Instructions:

Compute Arrow's direct material variances.

Compute Arrow's direct labor variances.

Compute Arrow's variances for factory overhead.

Reference no: EM131881233

Questions Cloud

What is the present value of annuity : A 20-year annuity pays $1,450 per month, and payments are made at the end of each month. what is the present value of the annuity?
How might IS change a manager job : Is monitoring an employee's work on a computer a desirable or undesirable activity from a manager's perspective? From the employee's perspective?
What needs to be area and volume of the sedimentation tank : what needs to be the area and volume of the sedimentation tank - Estimate the percent of suspended sediments that will be removed
Prepare a proof of the translation adjustment : On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland. Prepare a proof of the translation adjustment.
Compute arrow direct material variances : Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. Compute Arrow's direct material variances
What will your payment be if you make the first payment : If you borrow $2,600 and agree to repay the loan in six equal annual payments at an interest rate of 11%, what will your payment be?
How would the organizational strategy need to change : Mary Kay, Inc., sells facial skin care products and cosmetics around the globe. The business model is to provide one-on-one, highly personalized service.
Present value and loan eligibility : What is the most expensive car you can afford if you finance it for 48 months? What is the most expensive car you can afford if you finance it for 60 months?
Possibility of new bulk shipments : What recommendation would you make to the GLC board of directors regarding a container ship operation and the possibility of new bulk

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the appropriate journal entries for transactions

Prepare the appropriate journal entries for these transactions if required. If no entry is required, indicate if discourse is required.

  What information is in your open quadrant with your partner

What information is in your Open quadrant with your partner/friend but not in the Open quadrant with your acquaintance?

  Calculate the economic rate of return on common stock

Which of the following formulas should be used to calculate the economic rate of return on common stock?

  How can a company have a profit but not have cash

How can a company have a profit but not have cash?

  Describe generalized audit software

What is generalized audit software? What are the tasks for which auditors would use it? What are the advantages and disadvantages of using generalized audit software?

  Net cash from operating activities

Why may net cash flow from operating activities on the cash flow statement be different from the amount of net income reported on the income statement?

  Journal entries for the company payroll tax expense

During the month of February, Hennesey Corporation's employees earned wages of $74,000. Withholdings related to these wages were $5,661 for Social Security.

  Discuss board of directors of rok corporation declared cash

The board of directors of ROK Corporation declared a cash dividend of $3.00 per share on 60,000 shares of it's $1 par value outstanding common stock

  Discuss what component or variable is this group trying

what component or variable is this group trying to work on with its market

  Problem regarding the market analysis

Problem: The investors have asked that you consider running your analysis for at least 5 years. Your current widgets weigh 300 grams and the market analysis shows that you can sell the product for $3.15/widget.

  Pay off the account receivable

He has orally assured Terri that he will pay off the account receivable within the next year. Terri reported the $100,000 in the same manner on the preceding year's balance sheet.

  How should these gains be reported in the hospital

During the year ended December 31, 2012, a not for profit hospital had both unrealized and realized gains on investments made with its unrestricted net assets. How should these gains be reported in the hospital, statement of operations for the yea..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd