[cj777]

Lewis Company’s standard labor cost of producing one unit of Product DD is 3.10 hours at the rate of $11.00 per hour. During August, 41,600 hours of labor are incurred at a cost of $11.11 per hour to produce 13,300 units of Product DD.

(a) Compute the total labor variance.

Total labor variance $

(b) Compute the labor price and quantity variances.

Labor price variance $
Labor quantity variance $

(c) Compute the labor price and quantity variances, assuming the standard is 3.49 hours of direct labor at $11.28 per hour.

Labor price variance $
Labor quantity variance $

[cj777]

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials—2 pound plastic at $7.68 per pound $ 15.36
Direct labor—2.50 hours at $12.00 per hour 30.00
Variable manufacturing overhead 15.00
Fixed manufacturing overhead 15.00
Total standard cost per unit $75.36

The predetermined manufacturing overhead rate is $12 per direct labor hour ($30.00 ÷ 2.50). It was computed from a master manufacturing overhead budget based on normal production of 14,000 direct labor hours (5,600 units) for the month. The master budget showed total variable costs of $84,000 ($6.00 per hour) and total fixed overhead costs of $84,000 ($6.00 per hour). Actual costs for October in producing 4,200 units were as follows.

Direct materials (8,560 pounds) $ 66,854
Direct labor (10,310 hours) 126,504
Variable overhead 92,230
Fixed overhead 35,980
Total manufacturing costs $321,568

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

(a) Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

Total materials variance $
Materials price variance $
Materials quantity variance $
Total labor variance $
Labor price variance $
Labor quantity variance $

(b) Compute the total overhead variance.

Total overhead variance $

[cj777]

Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2014.

Costs and Production Data
Actual
Standard
Raw materials unit cost $4.10 $3.97
Raw materials units used 11,300 10,690
Direct labor payroll $172,840 $166,440
Direct labor hours worked 14,900 15,200
Manufacturing overhead incurred $213,112
Manufacturing overhead applied $216,752
Machine hours expected to be used at normal capacity 42,000
Budgeted fixed overhead for June $63,000
Variable overhead rate per machine hour $3.10
Fixed overhead rate per machine hour $1.50

Overhead is applied on the basis of standard machine hours. 3.10 hours of machine time are required for each direct labor hour. The jobs were sold for $456,000. Selling and administrative expenses were $43,500. Assume that the amount of raw materials purchased equaled the amount used.




(a) & (b)

Compute all of the variances for (1) direct materials and (2) direct labor. (Round answers to 0 decimal places, e.g. 125.)

(1) Total materials variance $
Materials price variance $
Materials quantity variance $
(2)Total labor variance $
Labor price variance $
Labor quantity variance $


Compute the total overhead variance.

Total overhead variance $

[cj777]

Eisler Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $430,000. The company believes that with this new machine it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $101,000 for the next 6 years. Management requires a 10% rate of return on all new investments. (Refer the below table)

Table: Screenshot by Lightshot


a. Calculate the internal rate of return on this new machine. (Round answer to 0 decimal places, e.g. 10.)

Internal rate of return %

[J_9]

We do not do homework for you. You have to show us your work and we will guide you in the right direction.

[cj777]

Sorry @ J_9 I worked them out. Well here are the very first two I've done.

"Costello Corporation Problem" I took a screenshot of my work--> Screenshot by Lightshot
"Hnak Itzek Manufactures Problem" screenshot of my work---> Screenshot by Lightshot

On "Ayala Corportation" which one do I use Actual or Standard?

[cj777]

I don't have a BA II plus calculator so I have to work it out by hand but I got stuck "Eisler Corporation" I know the formula but working it out is hard so far --->Screenshot by Lightshot

[cj777]

On "Lewis Company" I don't know how to put the numbers into the formula.

Total labor variance:
(AH X AR) - (SH X SR)

Labor price variance:
(AH X AR) - (AH X SR)

Labor quantity variance:
(AH X SR) - (SH X SR)

[cj777]

We do not do homework for you. You have to show us your work and we will guide you in the right direction.

Sorry I hope this helped.