1A – Assume that Schmidt Machinery Company had the standard costs…
Question Answered step-by-step 1A – Assume that Schmidt Machinery Company had the standard costs… 1A – Assume that Schmidt Machinery Company had the standard costs reflected in Exhibit 14.5. In a given month, the company used 3,450 pounds of aluminum to manufacture 920 units. The company paid $28.50 per pound during the month to purchase aluminum. At the beginning of the month, the company had 50 pounds of aluminum on hand. At the end of the month, the company had only 30 pounds of aluminum in its warehouse. Schmidt used 4,200 direct labor hours during the month, at an average cost of $41.50 per hour. Image transcription textStandard Cost Sheet, Product XV-1SCHMIDT MACHINERY COMPANYStandard Cost Sheet Pro… Show more… Show more Required:Compute the following variances for the month:1. The purchase price variance for aluminum. Indicate whether this variance is favorable or unfavorable.2. The usage variance for aluminum. Indicate whether this variance is favorable or unfavorable.3. The direct labor rate variance. Indicate whether this variance is favorable or unfavorable.4. The direct labor efficiency variance. Indicate whether this variance is favorable or unfavorable. 1B – The Ace Company sells a single product at a budgeted selling price per unit of $50. Budgeted fixed manufacturing costs for the coming period are $16,000, while budgeted fixed marketing expenses for the period are $27,000. Budgeted variable costs per unit include $8 of selling expenses (commission) and $10 of manufacturing costs. What is the budgeted operating income if the anticipated sales volume for the period is (1) 10,600 units, and (2) 15,600 units? 1C – Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials and direct labor) of its single product are:Image transcription textMaterial (5 kilograms * $6.00 perkilogram) $ 30.00 Labor (6 hours *$16.00 per hour) 96.00 All… Show more… Show moreRequired:1. Compute for November:a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)? b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)? c. The actual number of kilograms of material used in the production process during the month.d. The actual price paid per kilogram of material during the month, the company calculates the direct materials price variance at point of purchase.e. The amount of direct materials cost and direct labor cost transferred to the Finished Goods Inventory account.f. The total amount of direct materials cost and direct labor cost in the Work-in-Process Inventory account at the end of the month.2. Prepare journal entries to record all transactions, including the variances in requirement 1. 1D – Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month’s rent of $880. Budgeted cost data per tenant application for 2022 follow: Professional labor: 1.5 hours at $20.00 per hourCredit checks: $59.00Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,900 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $8,900 for 400 hours of professional labor. Credit checks went up to $64 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $4,500. The average first monthly rentals for August 2022 were $980 per apartment unit for 90 units. Required:1. (a) What is the master budget variance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the sales volume variance for the month?2. Determine the professional labor rate and labor efficiency variances for August 2022. Accounting Business Cost Accounting ACG 4341 Share QuestionEmailCopy link Comments (0)
