J&W Corporation manufactures a new electronic game console. The current standard
ID: 2408884 • Letter: J
Question
J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console follows:
Assume that the following data appeared in J&W’s records at the end of the past month:
There are no materials inventories.
Required:
a. Complete the standard cost sheet for a game console given below. Compute the direct labor efficiency variance. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
Direct Materials ____ Kilograms at $6 per kilogram _____ per game
Direct labor, .75 hours at_____ per hour_____ per game
Overhead, .75 hours at_______ per hour _____ per game
Direct Labor:
Effiencey _____ _____
Direct materials, ? kilograms at $6 per kilogram $ ? per game Direct labor, 0.75 hours at ? per hour ? per game Overhead, 0.75 hours at ? per hour ? per game Total costs $ 39 per gameExplanation / Answer
1)Material efficiency variance =SR[SQ-AQ]
-23400 = $6[SQ-120500]
-3900=SQ-120500
SQ=116600 Kg
Standard quantity per unit produced = 116600/44000 = 2.65 Kg/ game
standard material cost per unit = $6* 2.65 kg=$15.9/game
2)Labor price variance = Actual Hour ( SR-AR)
-18600 = 31000 [SR -$17.20]
-0.6=SR-17.20
SR=$16.60
AR=$17.20
standard Labor cost per Unit= $16.60*.75 =$ 12.45 per game
3)overhead cost per game =Total cost per game -material cost per game -labor cost per game
= $39-$15.90-$12.45=$10.65
Overhead cost per hour = $10.65/0.75 = $ 14.90
a)Standard Cost Sheet
Direct material 2.65 kg at $ 6
$15.90
Direct labor 0.75 hours at $16.60
$ 12.45
Overhead
$ 10.65
Total cost
$39
Labor efficiency variance =SR[SH-AH]
= $17.60 [(58000*0.75)- 41000]
= $44000 F
1)Material efficiency variance =SR[SQ-AQ]
-23400 = $6[SQ-120500]
-3900=SQ-120500
SQ=116600 Kg
Standard quantity per unit produced = 116600/44000 = 2.65 Kg/ game
standard material cost per unit = $6* 2.65 kg=$15.9/game
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.