Prepare an analysis of all variable manufacturing overhead

Assignment Help Accounting Basics
Reference no: EM132013939

Problem 1 - Price and efficiency variances, journal entries. The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor:

Direct materials: 10lbs at $4.50 per lbs. $45.00

Direct manufacturing labor: 0.5 hour at $30 per hour 15.00

The number of finished units budgeted for January 2014 was 10,000; 9,850 units were actually produced.

Actual results in January 2014 were as follows:

Direct materials: 98,055 lbs. used

Direct manufacturing labor: 4,900 hours $154,350

Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 100,00 lbs., at a total cost of $465,000. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage.

1. Compute the January 2014 price and efficiency variances of direct materials and direct manufacturing labor.

2. Prepare journal entries to record the variances in requirement 1.

3. Comment on the January 2014 price and efficiency variances of Schuyler Corporation.

4. Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time?

Problem 2 - Straightforward 4-variance overhead analysis. The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,000 output units per year, included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $245,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours were 28,400.

1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis.

2. Prepare journal entries the 4-variance analysis.

3. Describe how individual fixed manufacturing overhead items are controlled from day to day.

4. Discuss possible causes of the fixed manufacturing overhead variances.

Reference no: EM132013939

Questions Cloud

Explain the risks and benefits to using hrt : Describe a patient who may benefit from HRT. Explain the risks and benefits to using HRT
Assign a code for anesthesia service : What is the necessary steps Olivia needs to follow to assign a code for this Anesthesia service.
How this individual demonstrates maladaptive behavior : Describe in detail the individual and his or her behavior. Explain how this individual demonstrates maladaptive behavior.
What can affect the function of enzymes : What can affect the function of enzymes? Why do enzymes change with ambient temperature?
Prepare an analysis of all variable manufacturing overhead : Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis
What happen when the pancreas stops producing insulin : What happen when the pancreas stops producing insulin. What happen when the pancreas stops producing glucagon.
Calculate the volume of water solvent : Calculate the volume of .01 M 158.04 and of water solvent that will you need to make 25 mL of a 2 mM solution.
High concentration of red blood cells : Explain why and how erythropoietin secreting tumor result in an abnormally high concentration of Red Blood Cells.
How should mask account for the stock dividend : How should Mask account for the stock dividend, and how would it affect the stockholders' equity at December 31, 2014? Why

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Concerned with the personal development of others

Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an increase in drinking problems among the workforce. She thinks she needs to investigate further. She is at what stage of the managerial decision mak..

  Time worked not accepted by the payroll application program

1.under gaas the auditor can amend the language of the icfr audit report. the auditor can issue an adverse opinion on

  Determining the bond yield to maturity

De´cor Interiors has an outstanding bond with a $1,000 maturity value and a 5.5 percent coupon rate of interest that was issued 20 years ago. Interest is paid semiannually. The bond, which matures in five years, is currently selling for $1,022. Wh..

  How much must its cash balance be

Storm Vogel Tools has the following year-end account balances: Assuming that Storm Vogel has only the account balances listed, how much must its cash balance be

  Horizontal analysis of income statement and balance sheet

Horizontal Analysis of Income Statement and Balance Sheet

  When are private purpose trust funds used

When are Private Purpose Trust Funds used?

  Complete the balance sheet

Ratio analysis Use the following information to complete the balance sheet below Use 365 day calendar Current ratio = 5 Current liabilities = 5 million Credit sales = 25 million Average collection period = 30 Inventory turns = 8 Total asset turns ..

  Annual depreciation under the straight-line method

A machine with a useful life of 10 years and a residual value of $4,000 was purchased for $30,000. What is annual depreciation under the straight-line method?

  Prepare the journal entry to record the sale of the building

Based on the above information prepare the journal entry to record the sale of the building on Jan 1, 2009

  What alternative courses of action can you take

Who might suffer in the short term if you go along with your supervisor's request? What might happen in the future if you go along with her request this time? If you do not go along, who might suffer in the short term and what could be the long-term ..

  Transactions for the current fiscal year

5% on the first day of the current fiscal year, 1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for 1,225,000, Present entries to record the following transactions for the current fiscal year:

  Assume that the lessee is required to make payments

Use the information in RE21 3. Prepare the journal entries that Richie Company (the lessor) would make in the first year of the lease assuming the lease is classified as a sales type lease. Assume that the lessee is required to make payments on Decem..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd