Exercise 11-4 (Part Level Submission) Monte Services Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the oil change 5.00 hour Hourly wage rate $15 Payroll taxes 16% of wage rate Setup and downtime 10% of actual labor time Cleanup and rest periods 34% of actual labor time Fringe benefits 21% of wage rate (a) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. (a) Determine the standard direct labor hours per oil change.(Round answer to 2 decimal places e.g. 1.25.) (b) Determine the standard direct labor hourly rate.(Round answer to 2 decimal places e.g. 1.25.) Student did not submit Show Work for this attempt .wiley.com/edugen/shared/assignment/test/qreport.uni?id=quest2091238entrance1&partid=part1&assignment=asnmt1425530&student=usr3745626&class=cls446645&tqid=tq802552623&attempt=atmpt1310387665&poolid=&mode=” title=”Show Solution”>SHOW SOLUTION .wiley.com/edugen/shared/assignment/test/qreport.uni?id=quest2091238entrance1&partid=part1&assignment=asnmt1425530&student=usr3745626&class=cls446645&tqid=tq802552623&attempt=atmpt1310387665&poolid=&mode=” title=”Show Answer”>SHOW ANSWER .wiley.com/edugen/shared/assignment/test/qreport.uni?id=quest2091238entrance1&partid=part1&assignment=asnmt1425530&student=usr3745626&class=cls446645&tqid=tq802552623&attempt=atmpt1310387665&poolid=&mode=” title=”Link to Text 1″>LINK TO TEXT .wiley.com/edugen/shared/assignment/test/qreport.uni?id=quest2091238entrance1&partid=part1&assignment=asnmt1425530&student=usr3745626&class=cls446645&tqid=tq802552623&attempt=atmpt1310387665&poolid=&mode=” title=”Link to Text 2″>LINK TO TEXT PART SCORE Maximum Point Potential: 3.00 Points Earned: 3 Show Work file with instructor comments: Instructor did not annotate Show Work Exercise 11-4 (Part Level Submission) Monte Services Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the oil change 5.00 hour Hourly wage rate $15 Payroll taxes 16% of wage rate Setup and downtime 10% of actual labor time Cleanup and rest periods 34% of actual labor time Fringe benefits 21% of wage rate (b) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. Determine the standard direct labor cost per oil change.(Round answers to 2 decimal places e.g. 1.25.) Exercise 11-4 (Part Level Submission) Monte Services Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the oil change 5.00 hour Hourly wage rate $15 Payroll taxes 16% of wage rate Setup and downtime 10% of actual labor time Cleanup and rest periods 34% of actual labor time Fringe benefits 21% of wage rate (c) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. If an oil change took 5.6 hours at the standard hourly rate what was the direct labor quantity variance?(Round answers to 2 decimal places e.g. 1.25.) Exercise 11-14 .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. Picard Landscaping plants grass seed as the basic landscaping for business campuses. During a recent month the company worked on three projects (Remington Chang and Wyco). The company is interested in controlling the materials costs namely the grass seed for these plantings projects. In order to provide management with useful cost control information the company uses standard costs and prepares monthly variance reports. Analysis reveals that the purchasing agent mistakenly purchased poor-quality seed for the Remington project. The Chang project however received higher-than-standard-quality seed that was on sale. The Wyco project received standard-quality seed. However the price had increased and a new employee was used to spread the seed. Shown below are quantity and cost data for each project. Actual Standard Project Quantity Costs Quantity Costs Total Variance Remington 510 lbs. $1 250 480 lbs. $1 200 $50 U Chang 410 984 420 1 050 66 F Wyco 560 1 456 550 1 375 81 U Total variance $65 U (a) Prepare a variance report for the purchasing department: (1) Project (2) Actual Pounds Purchased (3) Actual Price (4) Standard Price and (5) Price Variance.(Round answers to 2 decimal places e.g. 1.25.) Exercise 11-16 .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. Fisk Company uses a standard cost accounting system. During January the company reported the following manufacturing variances. Materials price variance $1 288 U Labor quantity variance $819 U Materials quantity variance 758 F Overhead variance 805 U Labor price variance 419 U In addition 8 324 units of product were sold at $7 per unit. Each unit sold had a standard cost of $3. Selling and administrative expenses were $7 900 for the month. Prepare an income statement for management for the month ended January 31 2014. Problem 11-1A .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> Costello Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—2 pound plastic at $7.38 per pound $ 14.76 Direct labor—2.00 hours at $11.00 per hour 22.00 Variable manufacturing overhead 14.00 Fixed manufacturing overhead 14.00 Total standard cost per unit $64.76 The predetermined manufacturing overhead rate is $14 per direct labor hour ($28.00 ÷ 2.00). It was computed from a master manufacturing overhead budget based on normal production of 11 800 direct labor hours (5 900 units) for the month. The master budget showed total variable costs of $82 600 ($7.00 per hour) and total fixed overhead costs of $82 600 ($7.00 per hour). Actual costs for October in producing 4 300 units were as follows. Direct materials (8 740 pounds) $ 66 424 Direct labor (8 420 hours) 95 062 Variable overhead 90 900 Fixed overhead 31 710 Total manufacturing costs $284 096 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories therefore can be ignored. (a) Compute all of the materials and labor variances. (Round answers to 0 decimal places e.g. 125.) Problem 11-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2014 the company produced 27 500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49 970 direct labor hours. During the year 130 200 pounds of raw materials were purchased at $0.96 per pound. All materials purchased were used during the year. (a) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. If the materials price variance was $2 604 favorable what was the standard materials price per pound?(Round answer to 2 decimal places e.g. 2.75.) Problem 11-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2014 the company produced 27 500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49 970 direct labor hours. During the year 130 200 pounds of raw materials were purchased at $0.96 per pound. All materials purchased were used during the year. (b) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. If the materials quantity variance was $11 711 unfavorable what was the standard materials quantity per unit?(Round answer to 1 decimal places e.g. 1.5.) Problem 11-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2014 the company produced 27 500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49 970 direct labor hours. During the year 130 200 pounds of raw materials were purchased at $0.96 per pound. All materials purchased were used during the year. (c) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. What were the standard hours allowed for the units produced? Problem 11-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2014 the company produced 27 500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49 970 direct labor hours. During the year 130 200 pounds of raw materials were purchased at $0.96 per pound. All materials purchased were used during the year. (d) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. If the labor quantity variance was $7 280 unfavorable what were the actual direct labor hours worked? Problem 11-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2014 the company produced 27 500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49 970 direct labor hours. During the year 130 200 pounds of raw materials were purchased at $0.96 per pound. All materials purchased were used during the year. (e) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. If the labor price variance was $6 238 favorable what was the actual rate per hour?(Round answer to 2 decimal places e.g. 2.75.) Problem 11-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2014 the company produced 27 500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49 970 direct labor hours. During the year 130 200 pounds of raw materials were purchased at $0.96 per pound. All materials purchased were used during the year. (f) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. If total budgeted manufacturing overhead was $344 793 at normal capacity what was the predetermined overhead rate?(Round answer to 2 decimal places e.g. 2.75.) Problem 11-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2014 the company produced 27 500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49 970 direct labor hours. During the year 130 200 pounds of raw materials were purchased at $0.96 per pound. All materials purchased were used during the year. (h) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. How much overhead was applied to production during the year? Problem 11-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2014 the company produced 27 500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49 970 direct labor hours. During the year 130 200 pounds of raw materials were purchased at $0.96 per pound. All materials purchased were used during the year. (i) .png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”> .png” alt=”Correct answer.”> Your answer is correct. Using one or more answers above what were the total costs assigned to work in process?
