A company has the following standards for manufacturing one…
A company has the following standards for manufacturing one unit of its product:•Direct Materials: 60 pounds at $1.50 per pound•Direct Labor: 3 hours at $12 per hour During May, the company had budgeted to produce 1,800 units of its product, but actually only produced 1,650 units. The following data relate to actual outcomes from May:•The company purchased 114,000 pounds of materials for $188,100. They used all 114,000 pounds of materials in production.•Total direct labor cost amounted to $56,265 for the 5,115 direct labor hours incurred during May.What is the company’s direct materials price variance for May?
Read DetailsBarbeque King is a restaurant with 3 different restaurant lo…
Barbeque King is a restaurant with 3 different restaurant locations: Miami, Tallahassee, and Orlando. The company allocates common fixed costs equally to each location. The company’s total operating income during the year 2017 was $109,000. Information about the restaurant locations from the year 2017 follows: Miami Tallahassee Orlando Total Sales $150,000 $250,000 $105,000 Total Variable Costs $105,000 $100,000 $75,000 Traceable Fixed $43,000 $20,000 $32,000 Costs Common Fixed Costs $7,000 $7,000 $7,000 Operating Income -$5,000 $123,000 -$9,000 Suppose that the Orlando restaurant location were eliminated at the beginning of the year 2017. That is, assume that during the year 2017 the company only had the Miami and Tallahassee restaurant locations. What would the company’s total operating income have been for the year 2017?
Read DetailsDuring the year 2019, a company used the traditional method…
During the year 2019, a company used the traditional method to allocate manufacturing overhead to its two products. If the company had instead used Activity Based Costing, which of the following could have been different for the year 2019?
Read DetailsA company has the following standards for manufacturing one…
A company has the following standards for manufacturing one unit of its product:•Direct Materials: 60 pounds at $1.50 per pound•Direct Labor: 3 hours at $12 per hour During May, the company had budgeted to produce 1,800 units of its product, but actually only produced 1,650 units. The following data relate to actual outcomes from May:•The company purchased 114,000 pounds of materials for $188,100. They used all 114,000 pounds of materials in production.•Total direct labor cost amounted to $56,265 for the 5,115 direct labor hours incurred during May.What is the company’s direct labor efficiency variance for May?
Read DetailsJohn’s Golf Club Corporation produces golf clubs. In July,…
John’s Golf Club Corporation produces golf clubs. In July, it expected that the cost of direct materials would amount to $75 for each set of golf clubs produced. Although the company had expected to produce 13,000 sets of golf clubs during July, the company actually only produced 12,350 sets of golf clubs. The actual cost of direct materials per set of golf clubs amounted to $78. What is the sales volume (activity) variance for direct materials?
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