Concept explainers
The Excel worksheet form that appears below is to be used to recreate the main example in the text related to the Colonial Pewter Company. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.
You should proceed to the requirements below only after completing your worksheet.
Check your worksheet by changing the direct materials standard quantity in cell B6 to 2.9 pounds, the direct labor quantity standard quantity in cell B7 to 0.6 hours. and the variable manufacturing overhead in cell B8 to 0.6 hours. The materials spending variance should now be $1.500 U. the labor spending variance should now be $3.720 F, and the variable overhead spending variance should now be $60 F. If you do not get these answers, find the errors in your worksheet and correct them.
a. What is the materials quantity variance? Explain this variance.
b. What is the labor rate variance? Explain this variance.
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Introduction To Managerial Accounting
- Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. A (Click the icon to view information about Hoffman Company's process-costing system.) Prepare a set of summarized journal entries for all October 2017 transactions affecting Work in Process-Assembly (Record debits first, then credits Exclude explanations from any journal entries.) Begin by recording the purchase and use of direct materials. - X Journal Entry Data table Accounts Debit Credit JE 1 Physical Units Direct Conversion (Car Seats) Materials Costs $1,248,000 Work in process, October 1a Started during October 2017 Completed during October 2017 4,000 $241,650 22,500 26,000 500 Work in process, October 31° Total costs added during October 2017 $4,635,000 $2,575,125 Accounts Payable aDegree of completion: direct materials, ?%, conversion costs, 45%. bDegree of completion direct materials, ?%,…arrow_forwardUsing Excel to prepare a production cost report. Download an Excel temp/are for this problem online in MyAccountingLab or at http://www.pearsonhighered.com/Horngren. Salish Craft Beers provides the following information for the Malting Department for the month of August 2018: Requirements Complete a production cost report for the Malting Department for the month of August 2018 to determine the cost of the units completed and transferred out, and the cost of the ending Work-in-Process Inventory. Assume Salish Craft Beers uses the weighted-average method.arrow_forwardThis section has a nine-part comprehensive problem with multiple questions to address. Download the Chapter 9 Comprehensive Problem Template below to complete all parts. You will need your Bergevin and MacQueen book for reference. Redlands Inc. reported standard and actual costs for the product that it manufactures: Item Standard Actual Direct material price $3 per lb. $2 per lb. Direct materials quantity 2 lbs. 4 lbs. Direct labor price $5 $7 Direct labor quantity 3 hours 2 hours Factory overhead cost $2 per machine hour ---- Machine hours per unit 2 machine hours 3 machine hours Number of finished products made 10 12 Number of finished products sold 10 11 Sales per unit $40 $40 * Redlands used machine hours to apply factory overhead costs. The company incurred $90 actual total factory overhead costs to make the 12 products. 1. Standard product cost Item Price Quantity Total Direct materials Direct labor Factory overhead Standard…arrow_forward
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- For each of the following activities, select the most appropriate cost driver. Each cost driver may be used only once. Activity Cost Driver 1. Pay vendors Answer 2. Evaluate vendors Answer 3. Inspect raw materials Answer 4. Plan for purchases of raw materials Answer 5. Packaging Answer 6. Supervision Answer 7. Employee training Answer 8. Clean tables Answer 9. Machine maintenance Answer 10. Move in-process product from one work station to the next Answerarrow_forwardThe following information has been extracted from the cost accounting information system database for Victoria Furnitures Ltd. The company manufactures different types of furniture’s, including tables; The company manufactured 1,000 tables during the year 2020. Required: Using the information provided in the above table identify and explain how you classify each of the above costs according to the functional approach; Use the tables as the cost object in the classification of the costs.arrow_forwardYour manager asks you to bring the following incomplete accounts of Endeavor Printing, Inc., up to date through January 31, 2017. Consider the data that appear in the T-accounts as well as the following information in items (a) through (j). Endeavor's normal-costing system has two direct-cost categories (direct material costs and direct manufacturing labor costs) and one indirect-cost pool (manufacturing overhead costs, which are allocated using direct manufacturing labor costs). Materials Control Wages Payable Control 12-31-2016 Bal. 30,000 1-31-2017 Bal. 6,000 Work-in-Process Control Manufacturing Overhead Control 1-31-2017 Bal. 114,000 Finished Goods Control Costs of Goods Sold 12-31-2016 Bal. 40,000 Additional information follows: a. Manufacturing overhead is allocated using a budgeted rate that is set every December. You forecast next year's manufacturing overhead costs and next year's direct manufactur- ing labor costs. The budget for 2017 is $1,200,000 for manufacturing overhead…arrow_forward
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