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Compute stefani's total standard cost per unit

15/10/2021 Client: muhammad11 Deadline: 2 Day

Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.50 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.50 pounds. Materials cost $3 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.30 per pound. Direct labor. Each unit requires 1.70 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefani’s employees is $13.10. Payroll taxes and fringe benefits are an additional $3.40 per hour. Manufacturing overhead. Overhead is applied at a rate of $4.50 per direct labor hour. Compute Stefani’s total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.)

Total standard cost per unit

11-6

Lewis Company’s standard labor cost of producing one unit of Product DD is 3.70 hours at the rate of $12.90 per hour. During August, 40,600 hours of labor are incurred at a cost of $13.00 per hour to produce 10,800 units of Product DD. (a) Compute the total labor variance.

Total labor variance

$

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(b) Compute the labor price and quantity variances.

Labor price variance

$

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Labor quantity variance

$

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(c) Compute the labor price and quantity variances, assuming the standard is 4.10 hours of direct labor at $13.20 per hour.

Labor price variance

$

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Labor quantity variance

$

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11-12

Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 125,000 units per year. The total budgeted overhead at normal capacity is $1,125,000 comprised of $500,000 of variable costs and $625,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours. During the current year, Byrd produced 89,500 putters, worked 93,500 direct labor hours, and incurred variable overhead costs of $201,375 and fixed overhead costs of $755,500.

Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g. 2.75.)

Variable

Fixed

Predetermined Overhead Rate

$

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$

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LINK TO TEXT

Compute the applied overhead for Byrd for the year.

Overhead Applied

$

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LINK TO TEXT

Compute the total overhead variance.

Total Overhead Variance

$

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Problem 11-2A (Video)

Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020.

Costs and Production Data

Actual

Standard

Raw materials unit cost

$2.10

$1.90

Raw materials units

11,300

10,700

Direct labor payroll

$175,500

$171,360

Direct labor hours

15,000

15,300

Manufacturing overhead incurred

$212,930

Manufacturing overhead applied

$215,730

Machine hours expected to be used at normal capacity

43,500

Budgeted fixed overhead for June

$73,950

Variable overhead rate per machine hour

$3.00

Fixed overhead rate per machine hour

$1.70

Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The jobs were sold for $453,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used.

Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.)

(1)

Total materials variance

$

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Materials price variance

$

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Materials quantity variance

$

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(2)

Total labor variance

$

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Labor price variance

$

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Labor quantity variance

$

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SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

Compute the total overhead variance.

Total overhead variance

$

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SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.)

AYALA CORPORATION Income Statement

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$

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$

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