ACC 349 Week 5 Connect Assignment

ACC 349 Week 5 Connect Assignment
 

Access Connect.

Complete the Week 5 Problems.

1.

Award: 10 out of 10.00 points

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Standard Quantity or Hours
Standard Price 

or Rate
Standard Cost
  Direct materials
6.7
 pounds
$
2.50
 per pound
$
16.75
  Direct labor
0.5
 hours
$
12.50
 per hour
$
6.25
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During the most recent month, the following activity was recorded:
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

a.
Thirteen thousand pounds of material were purchased at a cost of $2.40 per pound.
b.
The company produced only 1,300 units, using 11,700 pounds of material. (The rest of the material purchased remained in raw materials inventory.)
c.
Seven hundred and fifty hours of direct labor time were recorded at a total labor cost of $9,000.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required:
Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Do not round intermediate calculations.)
 
 

 

 

 

2.

Award: 10 out of 10.00 points

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,300 of these meals using 1,250 direct labor-hours. The company paid these direct labor workers a total of $11,250 for this work, or $9.00 per hour.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $8.50 per hour.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required:
1.
According to the standards, what direct labor cost should have been incurred to prepare 4,300 meals? How much does this differ from the actual direct labor cost? (Round labor-hours per meal and labor cost per hour to 2 decimal places.)
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.
Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).)
 
 
 

 

 

 

 

3.

Award: 10 out of 10.00 points

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Direct materials: 6 microns per toy at $0.33 per micron
 Direct labor: 1.2 hours per toy at $6.70 per hour
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During July, the company produced 5,400 Maze toys. Production data for the month on the toy follow:
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct materials: 76,000 microns were purchased at a cost of $0.30 per micron. 35,500 of these microns were still in inventory at the end of the month.
Direct labor: 6,780 direct labor-hours were worked at a cost of $47,460.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required:
1.
Compute the following variances for July: (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Do not round intermediate calculations. Round final answer to the nearest whole dollar.)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

a.
The materials price and quantity variances.
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b.
The labor rate and efficiency variances.
 
 
 

 

 

4.

Award: 10 out of 10.00 points

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     In the most recent month, 120,000 items were shipped to customers using 4,100 direct labor-hours. The company incurred a total of $11,480 in variable overhead costs.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     According to the company’s standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $2.85 per direct labor-hour.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required:
1.
According to the standards, what variable overhead cost should have been incurred to fill the orders for the 120,000 items? How much does this differ from the actual variable overhead cost? (Round labor-hours per item and overhead cost per hour to 2 decimal places.)
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.
Break down the difference computed in (1) above into a variable overhead rate variance and a variable overhead efficiency variance. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).)
 

 

 

 

5.

Award: 10 out of 10.00 points

 

 

An unfavorable labor rate variance can occur if workers with high hourly wage rates are assigned to work on products with standards that assume workers have low hourly wage rates.

True

False