Reference no: EM136159
Not only did our salespeople do a superior job in meeting the sales budget this year, but our manufacture people did a good job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $18,300 overall manufacturing cost variance is only 1.2 percent of the $1,536,000 standard cost of products made in the year. That's well within the 3 percent parameter set by management for acceptable variances. It looks like everyone may be in line for a bonus this year."
The company sells and produces a single product. The standard cost per product is as given:
Direct materials, 2 feet at $8.45 per foot $16.90
Direct labor, 1.4 direct labor hours at $16 per DLH 22.40
Variable OH, 1.4 direct labor hours at $2.50 per DLH 3.50
Fixed OH, 1.4 direct labor hours at $6 per DLH 8.40
Standard cost per unit $51.20
The subsequent additional information is required for the year just completed:
- The company manufactured 30,000 units of product during the year
- A total of 64,000 feet of material was purchased in the year at a cost of $8.55 per foot. All of this material was used to manufacture the 30,000 units. There was no starting or ending inventories for the year.
- The company worked 43,500 direct labor hours during the year at a direct labor cost of $15.80 per hour.
- Overhead is functional to costs on the basis of standard direct-labor hours. Data relating to manufacturing overhead costs follow:
Budgeted Denominator activity level (DLH) 35,000
Budgeted fixed OH (from the flexible budget) $210,000
Actual variable overhead costs incurred $108,000
Actual fixed overhead costs incurred $211,800
Required:
1. Evaluate the direct materials price and efficiency variances for the year
2. Evaluate the direct labor price and efficiency variances for the year
3. Determine the efficiency variances and variable overhead spending for the year
4. Calculate the fixed overhead spending and production-volume variances for the year
5. Total the variances you have evaluated, and compare the net amount with the $18,300 mentioned by Ms. Clark. Do you agree that bonuses could be given to everyone for good cost control during the year? Describe.
|
Purpose of raid controllers
: nvestigate the purpose of RAID controllers. Learn what these controllers do as well as how they do it. Form an opinion regarding the suitability of these controllers in the Web server you are planning.
|
|
Evaluate common stock outstanding
: Adcock Corp. had $500,000 net loss in 2012. On 1 st January, 2012 there were 200,000 shares of common stock outstanding.
|
|
Explain new hampshire courts have jurisdiction
: he had no relatives in New Hampshire, he neither owned property nor possessed investments in New Hampshire and he had never conducted business in New Hampshire. Did the New Hampshire courts have jurisdiction. Explain
|
|
Analytical procedures as risk assessment procedures
: Identify and briefly describe three ways you could use analytical procedures as risk assessment procedures, Identify and briefly describe three ways you could use analytical procedures as substantive procedures through the audit.
|
|
Evaluate the direct materials price and efficiency variances
: Evaluate the direct materials price and efficiency variances for the year and evaluate the direct labor price and efficiency variances for the year and determine the efficiency variances and variable overhead spending for the year
|
|
Prepare per year to make it an attractive investment
: Should the City buy the new system or keep the old system and how much additional revenue could the ride have to prepare per year to make it an attractive investment?
|
|
Discuss injunction to be the proper form of remedy
: Sandler thereupon made an oil and gas lease as well as the oil company set up its machinery to begin drilling operations. Rubin then filed suit to enjoin the operations. Presumptuous an injunction to be the proper form of remedy what is the decisi..
|
|
Prepare a properly formatted, multi-step income statement
: Prepare a properly formatted, multi-step Income Statement (i.e. showing intermediate profit lines Gross Profit, NOI, EBITDA, EBIT, EBT, and NI, as required). Per Share presentation of income data is not being requested.
|
|
Establish lawful ownership of the driveway approaches
: An appropriate action to establish his lawful ownership of the strip on which the driveway approaches to enjoin its use by Dale, and to require Dale to eliminate the overlap
|