Accounting Assignment
1. The standard direct labor time for producing one pair of original Crocs is 0.6 hours and the direct labor rate for producing one pair of original Crocs is $18.50 per hour. During February, 10,000 pairs of original Crocs were produced. Actual direct labor costs were $97,850 for 5,150 hours. Compute the direct labor rate variance and the direct labor efficiency variance for the month of February.
For problems, be sure to answer all questions and provide all requested information. Your response should be at least 75 words in length.
2. Antique Reproductions, Inc. estimates its manufacturing costs as follows:
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Variable Costs
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Direct material
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$5.50/unit
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Direct labor
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2.40/unit
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Variable overhead
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1.00/unit
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Fixed Costs
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Supervisor's salary
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$15,000
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Production facility depreciation
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7,500
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Other production costs
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1,400
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Estimate manufacturing costs for manufacturing levels of 9,000 units, 11,000 units, and 13,000 units.
For problems, be sure to answer all questions and provide all requested information. Your response should be at least 75 words in length.
3. With the following information, compute the throughput time and the manufacturing cycle efficiency:
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Wait time
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12.0 days
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Inspection time
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0.9 days
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Processing time
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3.5 days
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Move time
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0.2 days
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Queue time
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2.0 days
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For problems, be sure to answer all questions and provide all requested information. Your response should be at least 75 words in length.
4. Classic British Sports Cars, Inc. specializes in maintaining and restoring sports cars from the 1960s and relies on a flexible budget. For January, 2012, the company projected that its revenue would be $100,000 based on 500 repair jobs at an average cost of $300 and 50 restoration jobs at an average cost of $2,000. Actual revenue for January was $268,000. Is that a favorable or unfavorable variance? What different factors could account for that variance? How should the company adjust its projections as a result of this variance?
Your response should be at least 75 words in length. For problems, be sure to answer all questions and provide all requested information.