Reference no: EM131208094
Materials and Labor Variances. The Cakebread Candy Company presents the following data for October.
Standards per Batch Actual Total
Materials...................1 pound at 2.50 per pound 49,000 pounds
Labor........................1.5 hours at 3.00 per hour 79,000 hours
Batches Produced.... 48,000 batches
During the month, the firm purchased 49,000 pounds of materials for $127,500. Wages earned were $214,000. Compute the labor and material variances.
Material quantity variance = ( Standard Quantity - Actual Qunatity ) * Standard Rate = (( 48000*1)-49000)*2.50 = (48000-49000)*2.50 i.e 2500 unfavourable Material price variance = (Standard price - Actual Price ) * Actual qunatity = ( 2.50-2.60)*49000 i.e 4900 unfavourable Labour rate variance = ( Standard Rate - Actual Rate ) * Actual Hours = ( 3 - 2.7089) * 79000 i.e 23000 Favorable Labour efficiency variance = ( Standrad hours - Actual Hours ) * Standard rate = (( 48000*1.50)-79000)*3 = 21000 unfavorable
Question: Evaluate cause of variances. refer to the information in above for the Cake Candy Company. based on the information for the company, write a short report explaining the cause of the variances that was computed.
|
How use of social media can ensure company has competitive
: Why and how the use of social media can ensure your company has a competitive edge. The pros and cons of change. The cost and benefit of making the proposed changes.
|
|
Sales method of estimating uncollectible expenses
: Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the en..
|
|
The expansion requires larger staff-bringing costs
: A company rents 40,000 square feet of space and is using 30,000 square feet for its present operations. It wishes to add a new division that will use the remaining 10,000 square feet. However, the expansion requires a larger staff, bringing costs up ..
|
|
Which of two measures better indicates operating performance
: Comparing profit margin and ROI as performance measures. College Coffee Shops operates coffeehouses on college campuses in three districts. The operating performance for each district follows. sing the operating profit margin percentage as the criter..
|
|
Materials and labor variances
: Materials and Labor Variances. The Cakebread Candy Company presents the following data for October. Evaluate cause of variances. refer to the information in above for the Cake Candy Company. based on the information for the company, write a short rep..
|
|
Determine the gain or loss on the sale of the equipment
: Equipment was acquired at the beginning of the year at a cost of $37,250. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of five years and an estimated residual value of $720. What was the de..
|
|
Direct write-off method than under the allowance method
: Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31, 2014: How much higher (lower) wo..
|
|
Job costs flow through the accounts
: Explain: Job Costs Flow through the Accounts. Job Order Costing: Allocating Manufacturing Overheard. Job Order Costing in a Service Company.
|
|
What is the marginal cost of selling one extra good
: The average production cost per good is estimated at $5 + $15/(x + 1). The firm can currently sell 10 units at $20 per unit. What is the current total profit of the firm? How much should the firm value the opportunity to sell one extra good to a new ..
|