1 answer

The red x are incorrect Paynesville Corporation manufactures and sells a preservative used in food and...

Question:

the red x are incorrect
Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inv
During the year, the company purchased 188,000 pounds of material and employed 46,400 hours of direct labor. Required: a. Com
Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 112,000 liters at a budgeted price of $165 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor $20 (2 pounds @ $10) (0.5 hours @ $36) Variable overhead is applied based on direct labor hours. The variable overhead rate is $80 per direct labor hour. The fixed overhead rate (at the master budget level of activity) is $40 per unit. All non-manufacturing costs are fixed and are budgeted at $1.8 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $522.000 unfavorable. The following is the actual income statement in thousands of dollars) for the year. $11.738 1,98 1.910 Sales revenue Less variable costs. Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead
During the year, the company purchased 188,000 pounds of material and employed 46,400 hours of direct labor. Required: a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances. (For all requirements, enter your answers in whole dollars. 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.) Answer is complete but not entirely correct. Direct materials Price variance 68,000 128,000® Eficiency variance b Direct labor $ 239,600 136, 800 Price variance Ecency variance Variable overhead Price variance 310.000 TC Etancy vanance

Answers

For Material and Labor

Standard Actual
Qty Rate Amount Qty Rate Amount
Material 112,000 X 2 224,000 10.00 2,240,000 Material 188,000 10.362 1,948,000
Labour 112,000 X 0.5     56,000 36 2,016,000 Labour     46,400     41.16 1,910,000
4,256,000 3,858,000

Here are the calculations

Efficiency variance = (Actual Qty - Standard Qty) X Standard Rate
Rate variance = (Actual Rate - Standard Rate) X Actual Qty

Material
Efficiency variance = (188,000 - 224,000) X 10 = (360,000) Favorable
Rate variance = (10.362 - 10) X 188,000 = 68,000 Unfavorable

Labor
Efficiency variance = (46,400 - 56,000) X 36 = (345,600) Favorable
Rate variance = (41.16 - 36) X 46,400 = 239,600 Unfavorable

Variable Overhead
Efficiency variance = (46,400 - 56,000) X 80 = (768,000) Favorable
Rate variance = (86.85 - 80) X 46,400 = 318,000 Unfavorable

.

Similar Solved Questions

1 answer
2. The interaction between neutral atoms can be approximated with the Lennard- Jones potential U(r)-4e where...
2. The interaction between neutral atoms can be approximated with the Lennard- Jones potential U(r)-4e where r is the interatomic distance, and E and σ are constants. a) If U is measured in Joules and r is measured in nanometers (nm), what are the units of є and σ. b) What is the i...
1 answer
Mrs. Gambino, a 38-year-old handcuff collector (see picture) consults her Chiropractor for evaluation of fatigue. Heart...
Mrs. Gambino, a 38-year-old handcuff collector (see picture) consults her Chiropractor for evaluation of fatigue. Heart auscultation reveals a diastolic murmur grade 4/6 with thrills and PMI at the apex without radiation. Based on the facts given, what is the most probable diagnosis? Answers A-E A M...
1 answer
For the given circuit, determine: a) What is the net reactance that will make the impedance...
For the given circuit, determine: a) What is the net reactance that will make the impedance magnitude equal to 10092. b) Is the resonance frequency higher of lower than the setting indicated by the reactance values? Xc R w 47 no HH 800 352 20 V...
1 answer
Public Health Issue Chosen: Obesity in the USA (No Copy Paste Please/ 700-800 words) Q: 1...
Public Health Issue Chosen: Obesity in the USA (No Copy Paste Please/ 700-800 words) Q: 1 Explain the roles of stakeholders, both within the health system and in other sectors in addressing this issue. Q: 2 Drawing on research evidence, explain the obstacles that are preventing the application of sy...
1 answer
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 The...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $560,000, and factory payroll cos...
1 answer
The current in a circuit is 8+4i amps. The impedance is 7+ i ohms. What is the voltage?
The current in a circuit is 8+4i amps. The impedance is 7+ i ohms. What is the voltage?...
1 answer
Please check my answers to part a and b, an help me answer part c. I...
Please check my answers to part a and b, an help me answer part c. I am not sure if I set it up correctly. Show work please, thank you. I LICN is asalt solution. The ka of HCN is 4,2 x 10 - a should the salt solution be auldic, basu, or neutral. o LiGN 7 Li + + CW - LIOH + HEN Basic SB WA b. Write t...
1 answer
2. Implement the function F in textbook problem 4.10 using *only* 2-to-1 multiplexers. 4.10
2. Implement the function F in textbook problem 4.10 using *only* 2-to-1 multiplexers. 4.10...
1 answer
1. Understanding the implications of taxes on welfare The following graph represents the demand and supply...
1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for pinckneys (an Imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (s...
1 answer
Which word does not belong with the others? For instance, they may be involved with different...
Which word does not belong with the others? For instance, they may be involved with different molecules or processes. O a) RNA b) proteins OC) 3' end d) 5' end The Shine Dalgarno sequence is involved with a) translation initiation in eukaryotes b) translation initiation in prokaryotes c) tra...
1 answer
4. Dice #1 is rolled a single tine. Dice #2 is rolled repeatedly. The game stops...
4. Dice #1 is rolled a single tine. Dice #2 is rolled repeatedly. The game stops at the first time that the sum of the two dices is 4 or 7. What is the probability that the game stops with a sum of 4?...
1 answer
3. The figure below shows a schematic of the dispersion for the conduction and valence bands...
3. The figure below shows a schematic of the dispersion for the conduction and valence bands for particular semiconductor. The conduction band has dispersion equation a 10-35 E (3 x 10 19) [2 x 10 and the valence band has dispersion equation E (4 x 10-37A2 where in both cases E is in units of joules...
1 answer
60. _A_The genetic code is A. almost universal B. redundant C. ambiguous D. all of the...
60. _A_The genetic code is A. almost universal B. redundant C. ambiguous D. all of the above E. A and B only 61. Which of these is not a step in pre-mRNA processing? A. Exons are removed and introns are spliced together. B. A modified guanine nucleoside is attached to the 3 phosphates at the 5' ...
1 answer
Bond prices. Price the bonds from the following table with monthly coupon payments: P . Hint:...
Bond prices. Price the bonds from the following table with monthly coupon payments: P . Hint: make sure to round all intermediate calculations to at least seven decimal places. i Data Table (Click on the following icon 2 in order to copy its contents into a spreadsheet.) Coupon Rate Years to Maturit...
1 answer
Clarification for Problem 6b: The average throughput of A (or B) means the average number of...
Clarification for Problem 6b: The average throughput of A (or B) means the average number of frames of A (or B) that can be transmitted successfully during every slot. 6. (20pts) Consider two nodes, A and B, that use the slotted ALOHA protocol to contend fora shared channel. Suppose they both have u...
1 answer
QutsLIVITI zpus You are given the following information: Income before interest and taxes Less: Interest expense...
QutsLIVITI zpus You are given the following information: Income before interest and taxes Less: Interest expense Balance Less: Taxes (at 40% rate) Income after taxes Less: Preferred dividends Income available to common stockholders $1,400,000 _(200,000) $1,200,000 _(480,000) $ 720,000 _(180,000) $ 5...
1 answer
There are 365 days in a year. How do you find the number of days in 3 years?
There are 365 days in a year. How do you find the number of days in 3 years?...