User Account

All Pages

Demonstrate the rate variance and the efficiency variance

Assignment Help Managerial Accounting
Reference no: EM132502371

Direct Materials and Direct Labor Variances

Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy:

Direct materials (6.30 oz. @ $0.20)$1.26

Direct labor (0.08 hr. @ $18.00)1.44

Standard prime cost$2.70

During the first week of operation, the company experienced the following actual results:

Bars produced: 142,000.
Ounces of direct materials purchased: 894,900 ounces at $0.21 per ounce.
There are no beginning or ending inventories of direct materials.
Direct labor: 11,220 hours at $17.30.
Required:

Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box.

Question 1. Compute price and usage variances for direct materials.

Question 2. Compute the rate variance and the efficiency variance for direct labor.

Question 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank or enter "0".

Reference no: EM132502371

Questions Cloud

What are the best 3 financial ratios : What are the best 3 financial ratios to analysis an airlines financial statement and why
How the new transactions would look in a journal : How the new transactions would look in a journal. Ie. how the money goes to each account, debit or credit. The opening balances of all the accounts
Create your strategic mentoring plan using given details : The summative assignment is a compilation of the revised assignments from weeks one through six. Using the feedback, you receive from the instructor.
How would your decision play a role in academic freedom : As the college president, what action would you take in this case? How would your decision, as a college president, play a role in academic freedom?
Demonstrate the rate variance and the efficiency variance : Compute the rate variance and the efficiency variance for direct labor. If a variance is zero, enter "0" and select "Not applicable" from the drop down box.
Calculate the base case scenario changes to cash flows : Combine the calculations performed in Step 3 to calculate the following: Calculate the base case scenario changes to cash flows and the net present value
Describe inspiration behind design of your mission statement : This discussion provides a second opportunity to share your website. Again, sharing your website for feedback provides you with perspectives on your design.
How much of joint cost should allocate to each joint product : How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations)
What is a lapsed life insurance policy : What is a lapsed life insurance policy? What are some possible causes of lapsing? Is a lapsed policy a problem or benefit to the insured? To the insurer?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Prepare a report to comment on the suitability of the TDABC

HI5017 Managerial Accounting Assignment, Holmes Institute. You are required to prepare a report to comment on the suitability of the TDABC for a company

  What overhead cost per unit will be allocated

What overhead cost per unit will be allocated to each product?

  Using the data below the month of july

Using the data below the month of July, determine the July Gross Profit using FIFO inventory methods.June 30:

  Why overtime premiums are treated as direct labour costs

If Eunice is paid a certain amount per hour and overtime is paid at time and a half, when Eunice works overtime, he will receive the full payment that includes the overtime worked. From this, explain why overtime premiums are treated as direct l..

  Discuss the value of classifying costs by activity category

Discuss the value of classifying and reporting costs by activity category. Calculate the total manufacturing cost to produce 20,000 units of the deluxe model. Present the total cost for each activity category.

  Discuss what some of the reports and ratios

Discuss what some of the reports and ratios are that the financial statements can help you develop and analyze the statements listed below, keep in mind that these statements are the foundation of financial accounting

  Compute direct materials price and quantity variances

Compute direct materials price and quantity variances and pass journal entries to record the purchase of materials and the use of materials in production.

  Produce a per unit cost statement for each product

Produce a per unit cost statement for each product, a breakeven point with underlying assumptions to support your figures and prepare a Five Year Budget Income Statement using marginal costing principles

  The ultimate outcome is in the best interest of the company

Is it unethical of Joan to bias her estimate of incremental sales on the high side, given that she believes the ultimate outcome is in the best interest of the company?

  Jamestown textiles process costing

Calculate the total work done in equivalent units and the unit cost for April. Calculate the cost of units completed and transferred. Also, compute the costs in ending work in process.

  What is the margin of safety in dollars

The breakeven sales in units is 2,000 and budgeted sales in units is 4,200. What is the margin of safety in dollars?

  Compounding interest and the banker

Compounding Interest and the Banker There are many factors influencing the cost of money for both individuals and corporations. Suppose you deposit money in an interest bearing account and at the same time borrow a bit of money from the same ba..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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