P11-12 Landers Company manufactures a number of products. The standards relating to one of these products 2023 Business Finance
2023 P11 12 Landers Company manufactures a number of products The standards relating to one of these products are shown below
P11-12 Landers Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May.
Standard Actual
Cost per Cost
Unit per Unit
Direct materials:
Standard: 1.80 feet at $3.00 per foot . . . . . . . . . . . . . $ 5.40
Actual: 1.75 feet at $3.20 per foot . . . . . . . . . . . . . . . $ 5.60
Direct labor:
Standard: 0.90 hours at $18.00 per hour . . . . . . . . . 16.20
Actual: 0.95 hours at $17.40 per hour . . . . . . . . . . . . 16.53
Variable overhead:
Standard: 0.90 hours at $5.00 per hour . . . . . . . . . . 4.50
Actual: 0.95 hours at $4.60 per hour . . . . . . . . . . . . . 4.37
Total cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26.10 $26.50
Excess of actual cost over standard cost per unit . . . . . $0.40
The production superintendent was pleased when he saw this report and commented: “This $0.40 excess cost is well within the 2 percent limit management has set for acceptable variances.
It’s obvious that there’s not much to worry about with this product.”
Actual production for the month was 12,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials.
Required:
1. Compute the following variances for May:
a. Materials price and quantity variances.
b. Labor rate and efficiency variances.
c. Variable overhead rate and efficiency variances.
2. How much of the $0.40 excess unit cost is traceable to each of the variances computed in (1) above.
3. How much of the $0.40 excess unit cost is traceable to apparent inefficient use of labor time?
4. Do you agree that the excess unit cost is not of concern?
We give our students 100% satisfaction for their assignment, which is one of the most important reasons students prefer us from other helpers. Our professional group and planners have more than ten years of rich experience. The only reason that our inception days, we have helped more than 100000 students with their assignments successfully. Our expert’s group have more than 2200 professionals of different topics, and that not all; we get more than 300 jobs every day more than 90% of the assignment get the conversion for payment.
Place Order Now