Reference no: EM132960117
NMR Company produces and sells a single product. A standard cost card for the product follows:
Standard Cost Card-per unit of product:
Direct materials, 4 meters at $4.00 per meter $16.00
Direct labour, 1.5 hours at $10.00 per hour 15.00
Variable overhead, 1.5 hours at $3.00 per hour 4.50
Fixed overhead, 1.5 hours at $7.00 per hour 10.50
Standard cost per unit $46.00
The company manufactured and sold 18,000 units of product during the year. A total of 70,200 meters of material was purchased during the year at a cost of $4.20 per meter. All this material was used to manufacture the 18,000 units. The company records showed no beginning or ending inventories for the year.
The company worked 29,250 direct labour-hours during the year at a cost of $9.75 per hour. Overhead cost is applied to products based on direct labour-hours. The denominator activity level (direct labour-hours) was 22,500 hours. Budgeted fixed overhead costs as shown on the flexible budget were $157,500, while actual fixed overhead costs were $156,000. Actual variable overhead costs were $90,000.
Required:
Problem a. Compute the direct materials price and quantity variances for the year.
Problem b. Compute the direct labour rate and efficiency variances for the year.
Problem c. Compute the variable overhead spending and efficiency variances for the year.
Problem d. Compute the fixed overhead budget and volume variances for the year.
|
What would be the company expected operating income
: If unit sales were increased by 10% and fixed expenses were reduced by $2,000, what would be the company's expected operating income?
|
|
What is the journal entry to record the change
: After recording the depreciation as of Jul. 1, 2026, what is the journal entry to record the change in revaluation using the proportionate method
|
|
Record current price and the number of shares outstanding
: Record the current price and the number of shares outstanding. In your role as a consultant at a wealth management firm, you have been assigned a very powerful
|
|
How you record this transaction in the cash flow statement
: In the previous year, a business associate withdrew 5,00,000 in cash from its current bank account to pay a supplier who accepts payments in cash only
|
|
Compute the direct labour rate and efficiency variances
: Compute the direct labour rate and efficiency variances for the year. The company manufactured and sold 18,000 units of product during the year.
|
|
Calculate cost advantage indices of company
: Calculate cost advantage indices of company A, B and C. Compare company A, B and C in terms of cost advantage index
|
|
What steps could senior management take to reduce the type
: Addix Company manufactures accessories for road, What steps could senior management take to reduce the type of behaviour exhibited by Roth? Explain.
|
|
What is the impact of accrued liabilities on the fnancial
: What is the impact of accrued liabilities on the fnancial statements? Should the accrued liabilities for wages and interest payable be removed from the balance
|
|
What amount of loss on these securities should be included
: What amount of loss on these securities should be included in the statement of comprehensive income for the year ended December 31, 2015
|