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accounting problems with all solutions




Question;1. The following information pertains to Skandalis Company's;production of one unit of;its manufactured product during the month of June;Standard quantity of materials 10 pounds;Standard cost per pound $0.75;Standard direct labor hours 0.50;Standard wage rate per hour $10.00;Materials purchased 200,000 pounds;Cost of materials purchased $0.72 per pound;Materials Consumed for manufacture of 10,000 units 112,000;pounds;Actual direct labor hours required for 10,000 units 4,600;Actual direct labor cost per hour $10.20;The materials price variance is recognized when materials;are purchased.;a. Compute the materials price and quantity variances.;b. Compute the labor rate and efficiency variances.;c. Indicate whether each of the above variances is favorable;or unfavorable;2. Dye and Dye, Attorneys-at-Law, each bill 1,500 hours per;year and receive pay of $100,000. Four paralegals work 2,000 hours each for the;firm and receive annual pay of $32,500. Overhead of $396,000 is anticipated, of;which $204,000 is attorney support and the rest is paralegal support.;Determine the overhead application rate under each of the;following circumstances;a. A simplified cost approach is used based on hours.;b. A simplified cost approach is used based on payroll;dollars.;c. An activity-based cost approach is used. Attorney support;is based on labor costs;and paralegal support is based on hours worked;3.The following accounts are maintained by the Riverside;Manufacturing Company in its general ledger: Materials, Work in Process;Factory Overhead, and Accounts Payable. The materials account had a debit;balance of $40,000 on November 1.;A summary of material transactions for November shows the;following transactions;(1) Materials acquired on account, $62,000;(2) Direct materials issued, $58,500;(3) Direct materials returned to storeroom, $1,200;(4) Indirect materials issued, $3,600;(5) Indirect materials returned to storeroom, $550;(6) Materials on hand were $200 less than the company's;ledger balance.;a. Prepare journal entries to record these transactions.;b. Post the journal entries to T-accounts.;c. Determine the balance of the materials account on;November 30.;Answer 4-8 in Two to Four sentence.;4. Under a process cost system, why is it necessary to estimate;the stage or degree of completion of work in process at the end of the;accounting period?;5. An employee who manufactures goods for her employer earns;$12 an hour for regular wages. He?s paid time and a half for all hours worked;in excess of 40 hours per week. In a recent week, she worked 50 hours.;a. How much of her gross pay that week was direct labor?;b. How much was indirect labor?;6. A company has $80,000 in fixed costs and makes one;product with a selling price of $20 per unit. If variable costs are $10 per;unit, what is the break-even sales volume in units?


Paper#42048 | Written in 18-Jul-2015

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