The Tee Shirt Enterprise uses a standard costing system. The company established the following direct materials cost standards for one unit of T-shirt: Standard Quantity-4 grams Standard Rate- Php5/gram Standard Cost - Php20 During the month of April, Tee Shirt Enterprise purchased 25,000 grams of materials at a cost of Php128,750 and used 10,250 grams of materials to produce 2.500 units of T-shirt. The direct materials price variance for January was: O Php3,750 Untavorable O Pho3.700 Unfavorable O Php3,750 Favorable Pho3.700 Favorable

The Tee Shirt Enterprise uses a standard costing system. The company established the following direct materials cost standards for one unit of T-shirt: Standard Quantity-4 grams Standard Rate- Php5/gram Standard Cost - Php20 During the month of April, Tee Shirt Enterprise purchased 25,000 grams of materials at a cost of Php128,750 and used 10,250 grams of materials to produce 2.500 units of T-shirt. The direct materials price variance for January was: O Php3,750 Untavorable O Pho3.700 Unfavorable O Php3,750 Favorable Pho3.700 Favorable

Name: The Tee Shirt Enterprise uses a standard costing system. The company
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Description: The Tee Shirt Enterprise uses a standard costing system. The company established thefollowing direct materials cost standards for one unit of T-shirt:Standard Quantity-4 gramsStandard Rate- Php5/gramStandard Cost - Php20During the month of April, Te

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 28P: Haversham Corporation produces dress shirts. The company uses a standard costing system and has set...

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Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,400 yards of fabric costing $3.05 per yard and incurring direct labor costs of $18,297 for 3,210 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour. a. Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. b. Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May. (For all requirements, Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round your answers to 2 decimal places.)
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Linis Company produces a commercial cleaning compund known as Zide. The direct materials and direct labor standards for one unit of Zide are as follows: Standard Qty Standard price Sandard cost Direct materials 4.6 lbs P2.50/lb. P11.50 Direct labor 0.2 hr. P35/hr. 7.00 During the most recent month, the following activity was recorde: Twenty thousand pounds of material were purchased at a cost of P2.35 per pound. All of the materials, purchased was usedd to produce 4,000 units of Zide. 750 hours of direct labor time were recorded at a total labor cost of P30,375. Compute for the direct labor efficiency variance. Indicate whether favorable or unfavorable.
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Alkozay Ltd. Manufactures started production of its new product line (shirts) in the month of November, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Standard Quantity 1.25 yards Standard Price Standard Cost Direct materials AFN 1.60 per yard AFN 2.00 Direct labor AFN 12 per DLH 0.25 DLH 3.00 Variable overhead AFN 4 per DLH 0.25 DLH 1.00 Fixed overhead AFN 6 per DLH 0.25 DLH 1.50 AFN 7.50 Bilal Nabi, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Bilal Nabi asked CFO Muhammad Javid for more information. He provided the following overhead budgets, along with the actual results for November. The company purchased and used 112,000 yards of fabric during the month. Fabric purchases during the month were made at AFN 1.45 per yard. The direct labor payroll ran AFN 249,260, with an…
Genola Fashions began production of a new product on June 1. The company uses a standard cost systemand has established the following standards for one unit of the new product:Standard Quantity Standard Price Standardor Hours or Rate CostDirect materials .......... 2.5 yards $14 per yard $35.00Direct labor ................ 1.6 hours $8 per hour $12.80During June, the following activity was recorded regarding the new product:a. Purchasing acquired 10,000 yards of material at a cost of $13.80 per yard.b. Production used 8,000 yards of the material to manufacture 3,000 units of the new product.c. Production reported that 5,000 direct labor-hours were worked on the new product at a cost of$43,000.Required:1. For direct materials:a. Compute the direct materials price and quantity variances.b. Prepare journal entries to record the purchase of materials and the use of materials in production.2. For direct labor:a. Compute the direct labor rate and efficiency variances.b. Prepare a journal…
Bmpany has recently createda standard cost system to help control costs and has established the following standards for the Maze toy Direct materials: 6 microns per toy at $0.31 per micron Direct labor. 11 hours per toy at $750 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows Direct materials 79,000 microns were purchased at a cost of $0.28 per micron. 38,500 of these microns were stil in inventory at the end of the month Direct labor. 6,440 direct labor-hours were worked at a cost of $50,876 Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "E for favorable. "U" for unfavorable. and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances 1a Material price…
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?
ntegrity Company uses standard costing for each specialized product. The following information is available:Standards:Material- 3.0 feet per unit @ P42.00 per footLabor- 2.5 hours per unit @ P75.00 per hourActual:Production- 2,750 units produced during the monthMaterial- 8,700 feet used; 9,000 feet purchased @ P45.00 per footLabor- 7,000 direct labor hours @ P79.00 per hourHow much is the labor rate variance? Choices: P28,000 U P27,500 F P28,000 U P27,500 U
ntegrity Company uses standard costing for each specialized product. The following information is available:Standards:Material- 3.0 feet per unit @ P42.00 per footLabor- 2.5 hours per unit @ P75.00 per hourActual:Production- 2,750 units produced during the monthMaterial- 8,700 feet used; 9,000 feet purchased @ P45.00 per footLabor- 7,000 direct labor hours @ P79.00 per hourHow much is the labor rate variance? P28,000 U P27,500 F P28,000 U P27,500 U