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STANDARD COSTS homework questions

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Question;Ex 201;Sonic, Inc. is;planning to produce 2,500 units of product in 2013. Each unit requires;3 pounds of materials at $6 per pound and a half hour of labor at $16 per hour.;The overhead rate is 75% of direct labor.;Instructions;(a) Compute;the budgeted amounts for 2013 for direct materials to be used, direct labor;and applied overhead.;(b) Compute the standard cost;of one unit of product.;Ex. 202;Pane Corp. manufactures and sells a;nutrition drink for children. It wants to develop a standard cost per gallon.;The following are required for production of a 100 gallon batch;1,960 ounces;of lime Kool-Drink at $.12 per ounce;40 pounds of granulated;sugar at $.60 per pound;63 kiwi fruit at $.50;each;100 protein tablets at;$.90 each;4,000 ounces of water at;$.003 per ounce;Pane estimates that 2% of the lime Kool-Drink is;wasted, 20% of the sugar is lost, and 10% of the kiwis cannot be used.;Instructions;Compute the;standard cost of the ingredients for one gallon of the nutrition drink.;Ex. 203;Engines Done Right Co. is trying to;establish the standard labor cost of a typical engine tune-up. The following;data have been collected from time and motion studies conducted over the past;month.;Actual;time spent on the tune-up 1.0;hour;Hourly;wage rate $16;Payroll;taxes 10%;of wage rate;Setup;and downtime 10%;of actual labor time;Cleanup;and rest periods 20%;of actual labor time;Fringe;benefits 25%;of wage rate;Instructions;(a) Determine;the standard direct labor hours per tune-up;(b) Determine;the standard direct labor hourly rate.;(c) Determine;the standard direct labor cost per tune-up.;(d) If a;tune-up took 1.5 hours at the standard hourly rate, what was the direct labor;quantity variance?;Ex. 204;Riggins, Inc.;manufactures one product called tybos. The company uses a standard cost system;and sells each tybo for $8. At the start of monthly production, Riggins;estimated 9,500 tybos would be produced in March. Riggins has established the;following material and labor standards to produce one tybo;Standard;Quantity Standard Price;Direct;materials 2.5 pounds $3 per pound;Direct;labor 0.6 hours $10 per hour;During March 2013, the following activity was;recorded by the company relating to the production of tybos;1. The company produced 9,000 units during the;month.;2. A total of 24,000 pounds of materials were;purchased at a cost of $66,000.;3. A total of 24,000 pounds of materials were used;in production.;4. 5,000 hours of labor were incurred during the;month at a total wage cost of $55,000.;Instructions;Calculate the following variances for March for Riggins;Inc.;(a) Materials price variance;(b) Materials quantity variance;(c) Labor price variance;(d) Labor quantity variance;Ex. 205;The following direct labor data pertain to the;operations of Pearce Corp. for the month of November;Actual;labor rate $12.25;per hr.;Actual;hours used 18,000;Standard;labor rate $12.00;per hr.;Standard;hours allowed 17,100;Ex. 205 (Cont.);Instructions;Prepare a;matrix and calculate the labor variances.;Price;Variance Quantity;Variance;Total;Labor;Variance;Ex. 206;The following direct materials data pertain to;the operations of Wright Co. for the month of December.;Standard materials price $5.00;per pound;Actual quantity of materials purchased and used 16,500 pounds;Ex. 206 (Cont.);The standard cost card shows that a finished;product contains 4 pounds of materials. The 16,500 pounds were purchased in;December at a discount of 4% from the standard price. In December, 4,000 units;of finished product were manufactured.;Instructions;Prepare a;matrix for materials and calculate the materials variances.;Price;Variance Quantity;Variance;Total;Materials;Variance;Ex. 207;Seacoast Company provided the following information;about its standard costing system for 2013;Standard;Data Actual;Data;Materials 10;lbs. @ $4 per lbs. Produced 4,000 units;Labor 3;hrs. @ $21 per hr. Materials;purchased 50,000 lbs. for $215,000;Budgeted production 3,500;units Materials;used 41,000 lbs.;Labor;worked 11,000 hrs.;costing $220,000;Instructions;Calculate the labor price variance and the labor;quantity variance.;Ex. 208;Lumberman Manufacturing provided the following;information about its standard costing system for 2013;Standard;Data Actual;Data;Materials 10;lbs. @ $4 per lbs. Produced 4,000 units;Labor 3;hrs. @ $21 per hr. Materials;purchased 50,000 lbs. for $215,000;Budgeted production 3,500;units Materials;used 41,000 lbs.;Labor;worked 11,000 hrs.;costing $220,000;Instructions;Determine the;amount of the materials price variance. By how much will the;materials price variances differ if the price variance is determined at the;time of production?;Ex. 209;Shep Corporation;estimated it would produce 6,200 buckets, though actual production was 6,000;during August. The standard labor cost is 2 buckets per hour at $18.00 per;hour. Actual cost per hour was $18.40 with a total labor cost of $53,360.;Instructions;Determine the amounts of the labor price and the;labor quantity variances for August.;Ex. 210;Purvis Manufacturing, which produces a single;product, has prepared the following standard cost sheet for one unit of the;product.;Direct materials;(6 pounds at $2 per pound) $12;Direct labor (2 hours at $12;per hour) $24;During the month of April, the company;manufactures 300 units and incurs the following actual costs.;Direct materials;purchased and used (1,850 pounds) $4,070;Direct labor (620 hours) $7,130;Instructions;Compute the;total, price, and quantity variances for materials and labor.

 

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