Reference no: EM132581062
Question 1.) At the beginning of June, Kimber Toy Company budgeted 11,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:
Direct materials$19,250 Direct labor 6,600 Total$25,850
The standard materials price is $0.70 per pound. The standard direct labor rate is $10.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:
Actual direct materials$18,000 Actual direct labor 6,200 Total$24,200
There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Kimber Toy Company actually produced 10,000 units during June.
Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Question 2.) Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 15,000 hours of productive capacity in the department:
Variable overhead cost:
Indirect factory labor$138,000
Power and light 5,550
Indirect materials 37,500
Total variable overhead cost$181,050
Fixed overhead cost:
Supervisory salaries$63,370
Depreciation of plant and equipment 39,830
Insurance and property taxes 25,350
Total fixed overhead cost 128,550
Total factory overhead cost$309,600
Assuming that the estimated costs for November are the same as for October, Determine a flexible factory overhead cost budget for the Press Department for November for 13,000, 15,000, and 17,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.
Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30
Direct labor hours 13,000 15,000 17,000