11. Krizum Industries makes heavy construction equipment. The standard for a par
ID: 2754956 • Letter: 1
Question
11. Krizum Industries makes heavy construction equipment. The standard for a particular crane calls for 23 direct labor-hours at $15 per direct labor-hour. During a recent period 1,450 cranes were made. The labor rate variance was zero and the labor efficiency variance was $5,400 unfavorable. How many actual direct labor-hours were worked?
38,750
33,350
33,710
31,900
12.
Munar Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear below:
Machining
$10,224
Order Filling
$24,282
Other
$6,900
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
MHs (Machining)
Orders (Order Filling)
Product Z3
3,300
240
Product X6
10,900
1,180
Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.
Product Z3
Product X6
Sales (total)
$92,100
$98,600
Direct materials (total)
$42,800
$32,000
Direct labor (total)
$36,100
$37,200
What is the overhead cost assigned to Product X6 under activity-based costing? (Round the Intermediate calculation to two decimal places and your final answer to nearest whole dollar.)
$14,900
$7,848
$20,178
$28,026
13.
Brisky Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining, Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below:
Overhead costs:
Equipment depreciation
$30,000
Supervisory expense
$14,800
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
0.50
0.40
0.10
Supervisory expense
0.50
0.30
0.20
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products.
Activity:
MHs (Machining)
Orders (Order Filling)
Product I3
5,530
161
Product U8
17,000
964
Total
22,530
1,125
Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.
Sales and Direct Cost Data:
Product I3
Product U8
Sales (total)
$69,700
$65,700
Direct materials (total)
$31,100
$23,900
Direct labor (total)
$22,400
$29,500
What is the product margin for Product I3 under activity-based costing? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)
$1,067
$8,373
$9,153
$12,933
14.
The Wright Company has a standard costing system. The following data are available for September:
Actual quantity of direct materials purchased
30,000
pounds
Standard price of direct materials
$5
per pound
Material price variance
$3,000
unfavorable
Material quantity variance
$2,000
favorable
The actual price per pound of direct materials purchased in September is: (Round your answer to 2 decimal places.)
$4.86
$5.00
$5.10
$5.14
15.
Avril Company makes collections on sales according to the following schedule:
30% in the month of sale
64% in the month following sale
6% in the second month following sale
The following sales have been are expected:
Expected Sales
January
$100,000
February
$110,000
March
$100,000
Budgeted cash collections in March should be budgeted to be:
$100,000
$106,400
$100,600
$100,400
11. Krizum Industries makes heavy construction equipment. The standard for a particular crane calls for 23 direct labor-hours at $15 per direct labor-hour. During a recent period 1,450 cranes were made. The labor rate variance was zero and the labor efficiency variance was $5,400 unfavorable. How many actual direct labor-hours were worked?
Explanation / Answer
Answer no. 11 :
Actual direct labour hours worked = 33710
Labour efficiency variance = - $5400
or, (SR*SH) - (SR * AH ) = - $5400
or, ( 15 * 33350 ) - ( 15 * AH ) =- $5400
or ,15 * AH = $500250+$5400= $505650
or , AH = $505650/15 = 33710 hrs.
Where ,
Labour efficiency Variance = ( SR * SH ) - ( SR * AH)
SR = Standard rate per labour hour
SH = Standard hour of Actual Production = 23 * 1450 = 33350
AH = Actual hours worked
Answer No. 12
Overhead Cost assigned to Product X6 = 10900*0.72+ 1180 * 17.1 = $28026
Answer No.13
Note 1
Note 2
Answer no.14
Actual Price per pound of direct material purchased = $ 5.1
Material price variance = - $3000
or , (SP * AQ) - (AP * AQ) = - $3000
or ( 5 * 30000) - ( AP * 30000) = - $3000
or , AP * 30000 = $153000
or AP = $153000/ 30000 = $ 5.1
where
material price variance = (SP*AQ) - ( AP * AQ)
SP = Standard price per direct material per unit
AP = Actual Price per unit of purchase material
AQ = Actual quantity of material purchased
Answer NO. 15
Budgeted Cash collection in the month of march =$106400
Activity Cost Driver Number Cost per unit of Driver Machining 10224 Mahine Hours 14200 0.72 Order filling 24282 Order 1420 17.1Related Questions
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