Reference no: EM131767656
1. BatCo makes metal baseball bats. Each bat requires 1 kg of aluminum at $20 per kg and 0.35 direct labor hours at $26 per hour. Overhead is assigned at the rate of $32 per direct labor hour. Assume the actual cost to manufacture one metal bat was $46.30. Compute the cost variance and classify it as favorable or unfavorable. (Round "Qty per unit" to 2 decimal places.)
Quantity per Unit
Cost per Input
Standard Cost per Unit
Direct materials
Direct labor
Overhead
2. The following information describes production activities of Mercer Manufacturing for the year:
|
Actual direct materials used
|
27,000 lbs. at $4.75 per lb.
|
Actual direct labor used
|
8,600 hours for a total of $172,860
|
Actual units produced
|
51,000
|
|
Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.70 per pound and 10 minutes of direct labor at $21.00 per hour.
(1) Compute the direct materials price and quantity variances. (Do not round intermediate calculations.)
(2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Do not round intermediate calculations.)
3.Trico Company set the following standard unit costs for its single product.
|
|
|
Direct materials (29 Ibs. @ $3 per Ib.)
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$
|
87.00
|
Direct labor (6 hrs. @ $6 per hr.)
|
|
36.00
|
Factory overhead-variable (6 hrs. @ $4 per hr.)
|
|
24.00
|
Factory overhead-fixed (6 hrs. @ $5 per hr.)
|
|
30.00
|
|
|
|
Total standard cost
|
$
|
177.00
|
The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available.
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Operating Levels
|
|
|
|
|
70%
|
|
80%
|
|
90%
|
Production in units
|
|
42,000
|
|
48,000
|
|
54,000
|
Standard direct labor hours
|
|
252,000
|
|
288,000
|
|
324,000
|
Budgeted overhead
|
|
|
|
|
|
|
Fixed factory overhead
|
$
|
1,440,000
|
$
|
1,440,000
|
$
|
1,440,000
|
Variable factory overhead
|
$
|
1,008,000
|
$
|
1,152,000
|
$
|
1,296,000
|
|
During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 318,000 hours. Units produced were assigned the following standard costs:
|
|
|
Direct materials (1,566,000 Ibs. @ $3 per Ib.)
|
$
|
4,698,000
|
Direct labor (324,000 hrs. @ $6 per hr.)
|
|
1,944,000
|
Factory overhead (324,000 hrs. @ $9 per hr.)
|
|
2,916,000
|
|
|
|
Total standard cost
|
$
|
9,558,000
|
|
|
|
|
Actual costs incurred during the current quarter follow:
|
|
|
Direct materials (1,561,000 Ibs. @ $3.10 per lb.)
|
$
|
4,839,100
|
Direct labor (318,000 hrs. @ $5.75 per hr.)
|
|
1,828,500
|
Fixed factory overhead costs
|
|
2,820,000
|
Variable factory overhead costs
|
|
2,640,000
|
|
|
|
Total actual costs
|
$
|
12,127,600
|
3. value:
20.00 points
Required information
Required:
1. Compute the direct materials cost variance, including its price and quantity variances.