Question2 Jordan Company plans to sell 135,000 units in November and 180,000 uni

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Question2 Jordan Company plans to sell 135,000 units in November and 180,000 units in December. Jordan's policy is that 10% of the following month's sales must be in ending inventory. On November 1, there were 14,000 units in inventory It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 Per hour. WHAT IS THE DIRECT LABOR COST BUDGETED FOR NOVEMBER? During the month of November, Ryan's Express parchased 10,000 pounds of flour at $1.00 per pound. A the end of November, Ryan's Express found that it had an unfavorable materials price variance THE STANDARD COST PER POUND MUST of $500 During June Zach's Company produced 12,000 chainsaw blades. The standard quantity of material allorwed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound. The actual cost was $7 per pound. The actual pounds of steel that Zach used were 19,500 pounds. CALCULATE ZACHS TOTAL MATERIALS VARIANCE CALCULATE THE MATERIALS PRICE VARIANCE -CALCULATE THE MATERIALS USAGE VARIANCE Rebecca Company produces picture frames. During the year 19,000 frames were produced. Labor for producing the picture frames are as follows: Direct labor (2 hours S10.) $20.00 Rebecca's actual labor hours were 36,000 hours at a wage rate o WHAT WAS THE TOTAL LABOR VARIANCE WHAT WAS THE LABOR RATE VARIANCE WHAT WAS THE LABOR EFFICIENCY VARIANCE t Company, 120,000 items were shipped to customers using 2,300 direct In a recent month for the Miranda labor hours. According to the company's standards. 02 direct labor-hours are required to fulfill an order for one item and the variable overhecad rate is S3.25 per direct labor hour WHAT IS THE TOTAL VARIABLE OVERHEAD VARIANCE? WHAT IS THE OVERHEAD RATE VARIANCE? WHAT IS THE VARIABLE OVERHEAD EFFICIENCY VARIANCE? The company incurred a total of $7,360 in variable overhead costs Three pounds of product alpha are required for each bottle of Solution X. The cost of the product is S1.50 per pound. Budgeted production of Solution X is given below for the first three quarters of 2018 THIRD 150,000 FIRST Production The inventory of product alpha at the end of a quarter must be equal to 20% of the following quarters production needs. Some 36000 pounds of product alpha will be on hand to start the first quarter. PREPARE A DIRECT MATERIALS BUDGET FOR PRODUCT ALPHA FOR THE FIRST TWO QUARTERS AND SHOW THE AMOUNT OF PURCHASES FOR THE FIRST TWO QUARTERS

Explanation / Answer

2) COMPUTATION OF DIRECT LABOUT COST FOR THE MONTH OF NOV OPENING STOCK 14000 SALES 135000 CLOSING   180000*10% 18000 PRODUCTION = SALES + CLOSING STOCK - OPENING STOCK 139000 LABOUR TIME PER ONE UNIT 0.5 HOURS NUMBER HOURS REQUIRED FOR 139000 UNITS 69500 HOURS WAGE RATE FOR HOUR 17 PER HOUR TOTAL WAGE COST 1181500 3) TOTAL ACTUAL COST = 10000*1 10000 LESS: UNFAVOURABLE VARIANCE 500 STANDARD COST 9500 STANDARD COST PER POUND = 9500/10000 0.95 4) ACTUAL PROCUTION 12000 STANDARD RAW MATERIAL REQUIRED (SQ) 18000 ACTUAL RAW MATERIAL USED (AQ) 19500 STANDARD RATE PER RM (SP) 8 ACTUAL RATE PER RM (AP) 7 MATERIAL COST VARIANCE (SQ*SP) - (AQ*AP) 7500 FAVOURABLE MATERAL PRICE VARINACE SQ * (AP-SP) 18000 FAVOURABLE MATERIAL USAGE VARIANCE SP * (AQ-SQ) 10500 ADVERSE 5) ACTUAL PRODUCTION 19000 STADARD LABOUR REQUIRED (SH) 38000 ACTUAL LABOUR (AH) 36000 STADARD RATE PER HOUR (SR) 10 ACTUAL RATE PER HOUR (AR) 10.5 . LABOUR COST VARIANCE (SH*SR) - (AH*AR) 2000 FAVOURABLE LABOUR RATE VARINACE SH * (AR-SR) 19000 ADVERSE LABOUR EFFICIENCY VARIANCE SR * (AH-SH) 21000 FAVOURABLE 6) ACTUAL PRODUCTION 120000 STADARD LABOUR REQUIRED (SH) 2400 ACTUAL LABOUR (AH) 2300 STADARD RATE PER HOUR (SR) 3.25 ACTUAL RATE PER HOUR (AR)    +7360/2300 3.2 TOTLA VOH COST VARIANCE (SH*SR) - (AH*AR) 440 FAVOURABLE VOH RATE VARINACE SH * (AR-SR) 120 FAVOURABLE VOH EFFICIENCY VARIANCE SR * (AH-SH) 320 FAVOURABLE 7) PARTICULARS FIRST SECOND THIRD OPENING STOCK 36000 18000 30000 SALES 60000 90000 150000 CLOSING STOCK - 20% OF FOLLOWING MONTH SALES 18000 30000 0 PRODUCTION = SALES + CLOSING STOCK - OPENING STOCK 42000 102000

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