Determine the standard cost per unit

Assignment Help Accounting Basics
Reference no: EM131962134

Problem

XO-20 is an oil-based product used to remove rust on bolts and nuts that are stuck. Its accounting system uses standard costs. The standards per 0.5-liter can of solution call for 0.77 liters of material and 4 hours of labor. (0.77 liters of material are needed due to evaporation in the production process.) The standard cost per liter of material is $2.5. The standard cost per hour for labor is $12.60. Overhead is applied at the rate of $15.11 per can. Expected production is 7,600 cans with fixed overhead per year of $34,504 and variable overhead of $10.57 per unit (a 0.5-liter can).

During 2015, 7,840 cans were produced; 13,900 liters of material were purchased at a cost of $65,747; 10,120 liters of material were used in production. The cost of direct labor incurred in 2015 was $372,980, based on an average actual wage rate of $10.97 per hour. Actual overhead for 2015 was $128,000.

Determine the standard cost per unit.

Calculate material, labor, and overhead variances.

Reference no: EM131962134

Questions Cloud

Compute the consumer surplus and producer surplus : Compute the consumer surplus and producer surplus. Assume the government imposes a price ceiling at P = $40.
Price elasticity of demand : Price elasticity of demand is an important concept. With appropriate examples, explain how this concept is related to total revenue.
Create an income statement for management : A Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Create an income statement for management.
Calculate the change in consumer surplus : Congress has imposed a quota of 25,000 units of imported oil. Calculate the change in consumer surplus and producer surplus from this legislation.
Determine the standard cost per unit : XO-20 is an oil-based product used to remove rust on bolts and nuts that are stuck. Determine the standard cost per unit.
Prepare a budgeted income statement for modern healthcare : Modern Healthcare, a group practice clinic with 10 physicians. Prepare a budgeted income statement for Modern Healthcare for the year 2015.
Increase in income on health expenditures : If the price elasticity of demand is -0.75 and the income elasticity is +0.4, then what will be the effect of a simultaneous 10 percent
Discourage entry into the industry : Advertising is one way existing firms can impose heavy costs to discourage entry into the industry.
Compute the roi of the teen division : Sarah Jones, the manager of the Teen division of Eve Clothing Company. Compute the ROI of the Teen division if the embroidery machine is purchased.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss what is the breakeven point in total units

Gabe Industries typically sells four Basic models for every Deluxe model. What is the breakeven point in total units

  How does one start the writing of proofs process

For someone who has no basis of understanding in geometry, how does one start the writing of proofs process? Is there a helpful document to help a student know how to get started?

  Prepare a presentation for a group

"Assume you are a senior partner in an accounting firm and must prepare a presentation for a group of recruits who aspire to become auditors with your firm. Prepare a 10- to 12-slide presentation that includes detailed speaker notes discussing eac..

  Identification method of costing inventory

Ted's Used Cars uses the specific identification method of costing inventory. During March, Ted purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each.

  A company issued 7 4-year bonds with a par value of 200000

a company issued 7 4-year bonds with a par value of 200000. the market rate when the bonds were issued was 7.5. the

  Describe the differences among liabilities

Describe the differences among liabilities. Methods to analyze line of credit to liabilities. Discuss management issues with handling liabilities.

  Pros and cons of defining accounting terms more strictly

Is it good that GAAP is written as broadly as it is? Explain. What are the pros and cons of defining accounting terms more strictly?

  What is the equivalent annual annuity for each plane

What is the equivalent annual annuity for each plane? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to two decimal places.

  Why is capaneus inferno 14 so important in understanding

1. why is capaneus inferno 14 so important in understanding the psychology of the sinners in hell?2. identify the

  Calculate the payout ratio

Calculate the payout ratio and return on common stockholders' equity

  A company had inventory on november 1 of 4 units at a cost

a company had inventory on november 1 of 4 units at a cost of 16 each. on november 2 they purchased 7 units at 27 each.

  Why should the furniture company have handed the customers

Was the free furniture in the form of a discount or rebate taxable, or should the furniture company have handed the customers of Form 1099-MISC?

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