Assume that Timekiller, Inc., manufactures a new electronic game console. The cu

Question

Assume that Timekiller, Inc., manufactures a new electronic game console. The current standard costs sheet for a game console follows: Direct materials, ? kilograms at $5 per kilogram Direct labor, 0.25 hours at ? per hour Overhead, 0.25 hours at ? per hour $ ? per game ? per game ? per game Total costs $ 13per game Assume that the following data appeared in Timekiller's records at the end of the past month Actual production Actual sales 33,000 units 21,000 units Materials (42,500 kilograms) $215,900 Materials price variance Materials efficiency variance Direct labor price variance Direct labor (6,300 hours) Underapplied overhead (total) 3,400 U 14,500 U 34,020 U 109,620 3,600 U There are no materials inventories (a) Complote the standard cost sheet for a game console given below What wos the drect labor efficiency s. Indicate the effect of each variance by selecting Required: vaniance? (Round kilograms to 2 decimal places. Indicate the effect of each variance by selecti "F" for favorable, "U" for unfavorable, and None" for no effect (i.e. zero variance).)

Explanation / Answer

Material effeciency variance = (Actual material - standard material for actual production) * standard rate

14,500 = 42,500 * 5 - Standard material * 5

standard material for actual production =( 212,500 -14,500 ) / 5 = 39,600 Kgs

Standard material for per game production = 39,600 /33,000 = 1.2 Kg

Standard cost per game = 1.2 * 5 = $6

Direct Labor price variance = (Actual rate - Standard rate) * actual hours

34,020= $109,620 - Standard rate * 6,300

Standard rate = (109,620 - 34,020) / 6,300 = $12 per hour

Labor cost per game = .25 hour * $12 = $3

Material cost per game + labor cost per game + overhead cost per game = Total cost per game

Overhead cost per game = $13 - $6 - $3 = $4

Labor effeciency variance = (Standard hours for actual production - Actual hours) * standard rate per hour

= ( .25 * 33,000 - 6,300 ) * 12 = (8,250 - 6,300) *12 = 23,400 F

2. Overhead cost per game = $4

Total production = 33,000 games

Total standard overhead cost = $4 * 33000 = $132,000 (applied cost )

Actual cost = Standard cost + under applied cost = $132,000 + $3,600 = $135,600

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.