Maurice Tutor

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Category > Accounting Posted 13 Aug 2017 My Price 11.00

Summertime, Inc.

Summertime, Inc. manufactures changeable type-heads for use on industrial printers. Each type-head is in a set consisting of the lead alloy type-head itself, a cover for the key on the printer keyboard, and a container box to hold the two items. At the beginning and end of June, there were no materials inventories. The following standards were developed for each unit:
Item
Materials:
Lead alloy (3 oz. @ $.20)..........
Cover materials (6 oz. @ $.04).....
Container boxes (1 @ $.10).........
Direct labor (1/4 hr. @ $12 per hr)......
Overhead ($9 per direct labor hour)......
Total cost.........................

Standard per Unit
$ .60
.24
.10
3.00
2.25
$6.19

Annual production is estimated at 50,000 units, with fixed overhead of $15,000.
During the past year, the following costs were incurred to produce 40,000 units:
Materials:
Lead alloy………………………… 122,000 oz. @ $.22
Cover materials…………………… 235,000 oz. @ $.04
Container boxes…………………………40,500 @ $.09
Direct labor ………………………. 9,500 hrs. @ $12.50
Overhead………………………..………………$90,000

REQUIRED: Compute the:
A. Materials price variance for each item.
B. Materials quantity variance for each item.
C. Labor rate variance.
D. Labor efficiency variance.
E. Budget variance.
F. Volume variance.

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Aug 2017 10:08 PM My Price 11.00

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