Scheer Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour

ACC 560 Week 7 Assignment

E11-6 Scheer Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800 hours of labor are incurred at a cost of $12.10 per hour to produce 10,000 units of Product DD.

Instructions:
a) Compute the total labor variance.
b) Compute the labor price and quantity variances.
c) Repeat the previous question, assuming the standard is 4.2 hours of direct labor at $12.25 per hour.

Click here for the solution: Scheer Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour

In Paige Company, direct labor is $20 per hour

BE10-3 In Paige Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2014, direct labor totaling $204,000 in incurred in working 10,400 hours.

Prepare (a) a static budget report and (b) a flexible budget report. Evaluate the usefulness of each report.

Click here for the solution: In Paige Company, direct labor is $20 per hour

Coyote Trading uses a predetermined manufacturing overhead rate of $12 per machine hour

Coyote Trading uses a predetermined manufacturing overhead rate of $12 per machine hour. Last year the company had actual overhead of $898,000 and 75,000 machine hours.

(a) Compute the amount of manufacturing overhead applied.
(b) Compute the amount of over/underapplied overhead.
(c) What is the disposition of the over/under applied overhead?

Click here for the solution: Coyote Trading uses a predetermined manufacturing overhead rate of $12 per machine hour

For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour

(Predetermined Overhead Rate) For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. The firm’s 2013 expected annual capacity is $78,000 direct labor hours, to be incurred evenly each month. Making one unit of the company product requires 1.5 direct labor hours.

a. Determine the total overhead to be applied per unit of product in 2013.
b. Prepare journal entries to record the application of overhead to Work in process inventory and the incurrence of $128,550 of actual overhead in January 2013, when 6,390 direct labor hours were worked.
c. Given the actual direct labor hours in (b), how many units would you have expected to be produced in January.

Click here for the solution: For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour