R The standard cost card for a unit of Product AX at the Cleaning Chemicals Corp. shows the following standard cost information: 0 ences Materials: 4 gallons at $4 per gallon Labor: 3 hours at $14 per hour Overhead: 40% of direct labor Total $16 42 17 $75 During the month of October 20X1, Job O-3 was completed. It was the only job worked on during October. Five thousand three hundred units were produced from the job. The actual costs were as shown below: Materials: 21,400 gallons at $4.10 per gallon Labor: 16,000 hours at $14.10 per hour Actual overhead Total Standard price for materials Actual price for materials Actual usage Total price variance for materials $ 87,740 225,600 90,240 $403,580 Required: Calculate the price variance for materials for the month. (Indicate the effect of the variance by selecting "Favorable", "Unfavorable", and "None" for no effect (i.e., zero variance).)

R The standard cost card for a unit of Product AX at the Cleaning Chemicals Corp. shows the following standard cost information: 0 ences Materials: 4 gallons at $4 per gallon Labor: 3 hours at $14 per hour Overhead: 40% of direct labor Total $16 42 17 $75 During the month of October 20X1, Job O-3 was completed. It was the only job worked on during October. Five thousand three hundred units were produced from the job. The actual costs were as shown below: Materials: 21,400 gallons at $4.10 per gallon Labor: 16,000 hours at $14.10 per hour Actual overhead Total Standard price for materials Actual price for materials Actual usage Total price variance for materials $ 87,740 225,600 90,240 $403,580 Required: Calculate the price variance for materials for the month. (Indicate the effect of the variance by selecting "Favorable", "Unfavorable", and "None" for no effect (i.e., zero variance).)

Name: 77The standard cost card for a unit of Product AX at the Cleaning Che
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Description: 77The standard cost card for a unit of Product AX at the Cleaning Chemicals Corp. shows the following standard cost information:encesMaterials: 4 gallons at $4 per gallonLabor: 3 hours at $14 per hourOverhead: 40% of direct laborTotal$ 164217$75Duri

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 10E: Standard unit cost and journal entries The normal capacity of Algonquin Adhesives Inc. is 40,000...

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Standard unit cost and journal entries The normal capacity of Algonquin Adhesives Inc. is 40,000 direct labor hours and 20,000 units per month. A finished unit requires 6 lb of materials at an estimated cost of 2 per pound. The estimated cost of labor is 10.00 per hour. The plant estimates that overhead (all variable) for a month will be 40,000. During the month of March, the plant totaled 34,800 direct labor hours at an average rate of 9.50 an hour. The plant produced 18,000 units, using 105,000 lb of materials at a cost of 2.04 per pound. 1. Prepare a standard cost summary showing the standard unit cost. 2. Make journal entries to charge materials and labor to Work in Process.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Cost Direct materials Standard Price or Rate $ 3.00 per pound $14.00 per hour 7.00 pounds 0.40 hours Direct labor $ 21.00 $5.60 During the most recent month, the following activity was recorded: Book a. Thirteen thousand six hundred pounds of material were purchased at a cost of $2.90 per pound. F b. The company produced only 1,360 units, using 12,240 pounds of material. (The rest of the material purchased remained in raw materials inventory.) Print c. 644 hours of direct labor time were recorded at a total labor cost of $7,728. 0 Required: References Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not…
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Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Price or Rate $ 1.80 per pound $ 12.00 per hour During the most recent month, the following activity was recorded: Direct materials Direct labor Standard Quantity or Hours 7.10 pounds 0.20 hours Standard Cost $12.78 $2.40 a. Nineteen thousand two hundred and fifity pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 400 hours of direct labor time were recorded at a total labor cost of $5,200. 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U"…
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