Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Headsmart produces headphone cases.  In  September 2011, company made 106,000 cases and recorded cost data given below:

 

Standard Cost Information

 

Quantity

Price

Direct materials

2 parts

$0.17 per part

Direct labor

0.02 hours

$9.00 per hour

Variable manufacturing overhead

0.02 hours

$10.00 per hour

 

Fixed manufacturing overhead ($32,640 for static budget volume of 96,000 units and 1,920 units and 1,920 hours, or $17 per hour)

 

Direct materials (265,000 parts were bought at $0.22 per part, 215,000 parts were used)

 

Direct labor (1,700 hours at $9.10 per hour=$15,652)

 

Manufacturing overhead $60,500 (30% was fixed)

 

a) Find out eight variances

 

1. Materials: VP=(AP-SP)AQ-(actual price-standard price)*actual quantity

 

   VQ=(AQ-SQ)*SP

 

2. Direct labor: VP=(AP-SP)*AQ  and VQ=(AQ-SQ)*SP

 

3. Variable overhead: VP=(AP-SP)*AQ  and VQ=(AQ-SQ)*SP

 

4. Fixed overhead:  SPENDING VARIANCE= actual fixed overhead incurred- fixed factory overhead budgeting

 

Production volume variance = fixed factory overhead budgeting - standard fixed overhead applied

 

b) Comment on variances

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916864

Have any Question? 


Related Questions in Accounting Basics

Please answer the following question analysis needed with

Please answer the following question. Analysis needed with explanation. Use in-text citation and reference page if necessary in APA format. Answers should be must be plagiarism free. Zaldor Corporation sells a specialize ...

Problemmaquoketa services was formed on may 1 2017the

Problem Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month. Transactions on May 1: 1. Jay BradFord invested $40,000 cash in the company, as its sole owner . 2. Hire ...

Discussion forumthis week we shall look at monopolistic

DISCUSSION Forum This week we shall look at Monopolistic Competition. This is where you, as a consumer, spend most of your time. In Monopolistic Competition, there are many companies selling similar but not identical pro ...

In january 2013 mitzu co pays 2650000 for a tract of land

In January 2013, Mitzu Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $823,50 ...

Mcreath corporation is a leading producer of fresh frozen

McReath Corporation is a leading producer of fresh, frozen, and made from concentrate citrus drinks. The firm was founded in 1922 by Charles McReath, an army veteran who settled in Jacksonville, Florida, after World War ...

Accounting assignmentcolorado springs company csc is a

Accounting Assignment Colorado Springs Company (CSC) is a wholesaler with fiscal year ended December 31 of previous year. Since it is publicly-traded, it undergoes external audit. The most recent audit was completed in F ...

Conduct a cost analysis of gas versus electric vehicle find

Conduct a cost analysis of gas versus electric vehicle. Find the break-even point assuming gasoline is $3.00/gallon with an average of 22 miles per gallon that costs $25,000. Compared to an electric vehicle for $35,000 t ...

In todays technology environment hackers present a

In today's technology environment, hackers present a substantial risk to a firm's accounting or business system. As the result of these attacks, firms suffer huge losses, ranging from financial losses to losses in confid ...

Task -task covers the application of conceptual and

Task - Task covers the application of conceptual and technical aspects of accounting and the preparation of business financial statements, the appraisal of the use of information technology including spreadsheet software ...

Accounting assignmentaccounting is the study of how

Accounting Assignment Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro