a FBC (Pty) manufactures one product, Product X. You were given the following information for period 4. Product X has a standard material cost as follows: 10 kilograms of material Y at P10 per kg = P100 per unit of X. During period 4; 1, 000 units of X were manufactured, using 11, 700 kg of material which cost P98, 631. The standard labour cost of product X is as follows: 2 hours of grade Z labour at P10 per hour = P20 per unit of product X. During period 4; 1, 000 units of product X were made, and the labour cost of grade Z labour was P17, 825 for 2, 300 hours of work. Degree July - December Required: Calculate the following variances: a. Material price variance b. Material usage variance The labour rate variance d. The labour efficiency variance C. Botswana Open University Supplementary/Special Assignment BMA721 - Business Management Accounting (4 marks) (4 marks) (4 marks) (4 marks)

a FBC (Pty) manufactures one product, Product X. You were given the following information for period 4. Product X has a standard material cost as follows: 10 kilograms of material Y at P10 per kg = P100 per unit of X. During period 4; 1, 000 units of X were manufactured, using 11, 700 kg of material which cost P98, 631. The standard labour cost of product X is as follows: 2 hours of grade Z labour at P10 per hour = P20 per unit of product X. During period 4; 1, 000 units of product X were made, and the labour cost of grade Z labour was P17, 825 for 2, 300 hours of work. Degree July - December Required: Calculate the following variances: a. Material price variance b. Material usage variance The labour rate variance d. The labour efficiency variance C. Botswana Open University Supplementary/Special Assignment BMA721 - Business Management Accounting (4 marks) (4 marks) (4 marks) (4 marks)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Acadia Company uses standard costs to account for its production of ZIP. The standard cost of one unit is given below:Material A: 20.00 kilograms @ €1.00 = €20.00Material B: 5.00 kilograms @ 2.40 = 12.00Direct labour: 4.75 hours @ 15.00 = 71.25Each material is added at the beginning of the process. Production data for June, 20X9, are as follows:a.Beginning work in progress, 15,000 units, 20% completeb.Started during the month, 37,000c.Ending work in progress, 14,000 units, 75% completed.Material A issued to production, 750,000 kilogramse.Material B issued to production, 184,000 kilogramsf.Direct labour cost was €3,248,250 for 213,000 hoursg.Assume that materials A and B are perfect substitutes. Required: on the sheeta. What is the material mix variance for material A? For material B? b.What is the material yield variance?
A company is in the process of setting standard unit costs for next period. Product J uses two types of material, P and S. 7 kg of material P and 3 kg of material S are needed, at a standard price of $4 per kg and $9 per kg respectively. Direct labour will cost $7 per hour and each unit of J requires 5 hours of labour. Production overheads are to be recovered at the rate of $6 per direct labour hour, and general overhead is to be absorbed at a rate of ten per cent of production cost. What is the standard prime cost for one unit of product J?
Vattes, Incorporated, manufactures and sells two products: Product 15 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product 15 Product U1 Total direct labor-hours Product 15 Product U1 Expected Hours Per Production Unit 700 7.0 200 4.0 The direct labor rate is $22.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 261.60 $121.60 Activity Cost Pools Labor-related Machine setups Order size Direct Labor- The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Measures DLHs setups MHS Estimated Overhead Cost Total Direct Labor- Hours 4,900 800 5,700 $ 268,698 37,324 633,895 $ 939,917 Expected Activity Product I5 Product U1 4,900 300 4,900 800 400 4,800 Total 5,700 700 9,700 Which of the following statements…
. In a manufacturing process, following standards apply: Standard prices: Raw Material A – Rs 10/Kg and B – Rs 50/kg Standard Mix – 75% of A and 25% of B (By weight) Standard output – 90% of the raw material (in weight) In a particular period, actual costs, usages and output were as follows: 4400 kg of A costing Rs 46,500 1600 kgs of B costing Rs 78,500 Output was 5670 kgs of the product. The budgeted output of the period was 7200 kgs. Calculate all material variances. . In a manufacturing process, following standards apply: Standard prices: Raw Material A – Rs 10/Kg and B – Rs 50/kg Standard Mix – 75% of A and 25% of B (By weight) Standard output – 90% of the raw material (in weight) In a particular period, actual costs, usages and output were as follows: 4400 kg of A costing Rs 46,500 1600 kgs of B costing Rs 78,500 Output was 5670 kgs of the product. The budgeted output of the period was 7200 kgs. Calculate all material variances.
Drummond’s standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $2 per pound and $7 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost of Drummond’s product is?
Bramble's standard quantities for 1 unit of product include 3 pounds of materials and 1.0 labor hours. The standard rates are $3 per pound and $5 per hour. The standard overhead rate is $10 per direct labor hour. The total standard cost per unit of Bramble's product is O $24.00. O $18.00. O $15.00. O $14.00.
Bonita’s standard quantities for 1 unit of product include 3 pounds of materials and 1.0 labor hours. The standard rates are $5 per pound and $5 per hour. The standard overhead rate is $6 per direct labor hour. The total standard cost per unit of Bonita’s product is a. $26.00. b. $11.00. c. $16.00. d. $20.00.
Vattes, Incorporated, manufactures and sells two products: Product 15 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product 15 Product U1 Total direct labor-hours Product 15 Product U1 Direct Materials Cost per Unit $ 261.60 $ 121.60 The direct labor rate is $22.00 per DLH. The direct materials cost per unit for each product is given below: Expected Hours Per Production Unit 700 7.0 200 4.0 Activity Cost Pools Labor-related Machine setups Order size Direct Labor- The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Measures DLHS setups MHS Estimated Overhead Cost Total Direct Labor- Hours 4,900 800 5,700 $ 268,698 37,324 633,895 $ 939,917 Product 15 Product U1 4,900 300 4,900 800 400 4,800 Total 5,700 700 9,700 Which of the following statements…
Kukrudu Co. Ltd produces three modules of a product namely Hwentsia (H), Prekese (P) andKakaduro (K).The following data related to the products for the period.H K P TotalGH¢‘000 GH¢‘000 GH¢‘000 GH¢‘000Direct Material 150 240 200 590Direct Labour Cost 14.4 24 54 92.4OverheadsMachine settings 26Overhead Processing 64Warehouse Cost 93Energy to run machine 42Shipping 36A consultant, Mr. P. S. Initiative recommended the following after a detailed study of the company’s production process.ACTIVITY COST DRIVER ACTIVITY LEVELH K Pa. Machine setup No. of Production runs 22 34 44b. Sales order processing No. of sales received 400 600 600c. Warehouse cost No of units held in inventory 200 200 400d. Energy Machine Hours 10,000 16,000 24,000e. Shipping No. of Units shipped 1000 4000 10,000It is the policy of the Kukrudu Co. Ltd. to make a profit margin of 25% on its products.Required:Calculate the selling price of each of the three (3) products(all calculations should be to the nearest Ghana cedi).
Hesson, Incorporated, manufactures and sells two products: Product F3 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product F3 Product FØ Total direct labor-hours Product F3 Product F0 Direct Materials Cost per Unit $ 261.40 $187.50 The direct labor rate is $16.30 per DLH. The direct materials cost per unit for each product is given below: Activity Cost Pools Labor-related Machine setups Order size Expected Hours Per Production Unit 300 6.0 200 5.0 Direct Labor- The company is considering adopting an activity-based costing system with the following activity cost pool Activity Measures DLHs setups MHS Total Direct Labor- Hours Estimated Overhead Cost 1,800 1,000 2,800 $ 110,964 33,005 486,720 $630,689 Expected Activity Product F3 Product FØ 1,800 1,000 300 200 3,100 2,900 tivity measures, and expected Total 2,800 500 6,000 The unit product cost of Product F3 under…
Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product V9 Product M6 Total direct labor-hours Product V9 Product M6 The direct labor rate is $24.20 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $275.60 $ 168.80 Activity Cost Pools Labor-related Product testing Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Required: Calculate the difference betwee the unit Expected Production 340 440 Traditional unit product cost ABC unit product cost Difference $ DLHs Tests MHS Product V9 Activity Measures Estimated Overhead Cost Direct Labor-Hours Per Unit 9.4 6.4 Product M6 0.00 $ Total Direct Labor-Hours 3,196 2,816 6,012 0.00 $ 95,656…