Question

J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console follows.

Direct materials, ? kilograms at $8 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	$	45	per game

Assume that the following data appeared in J&W’s records at the end of the past month.

Actual production		42,000	units
Actual sales		39,000	units
Materials (124,500 kilograms)		?
Materials price variance		51,000	U
Materials efficiency variance		38,400	U
Direct labor price variance		15,250	U
Direct labor (30,500 hours)		536,800
Underapplied overhead (total)		19,200	U

There are no materials inventories.

Required:

a-1. Complete the standard cost sheet for a game console given below.
a-2. Prepare a variance analysis for direct materials and direct labor.
b. Assume that all production overhead is fixed and that the $19,200 underapplied is the only overhead variance that can be computed. What are the actual and applied overhead amounts?

Complete this question by entering your answers in the tabs below. Req Al Req AZ ReqB Complete the standard cost sheet for a game console given below. (Do not round intermediate calculations. Round your answers to 2 decimal places.) per game Direct materials Direct labor, 0.75 hours at, Overhead, 0.75 hours at Total costs kilograms at $8 per kilogram per hour per hour per game per game 45 per game Req A2 >

Answer 1

J&W Corporation Requirement a Direct materials Direct labor, 0.75 hours at Overhead, 0.75 hours at Total costs 2.85 kilograms at $8 perkilogram 17.1 per hour 12.49 per hour 22.8 per game 12.83 per game 9.37 per game 45 per game Direct labor: Efficiency variance Explanation: Direct materials: Actual costs (AP X AQ) = $1,047,000 Actual inputs at standard price (SP X AQ) = $8* x 124,500 kilograms* = $996,000 Price variance = $996,000 - $1,047,000 = $51,000 U $996,000 - Flexible budget (Standard inputs allowed for good output) (SP X SQ) = $38,400 U Flexible Budget (Standard inputs allowed for good output) (SP X SQ) = $957,600 $8 x ? kilograms x 42,000 units = $957,600 ? kilograms = $957,600 + $336,000 ? kilograms = 2.85 2.85 kilograms x $8 per kilogram = $22.8 per game Direct labor: Actual costs (AP X AQ) = $17.60 x 30,500* hours = $536,800 $536,800 - Actual inputs at Standard price = $15,250 U Actual inputs at standard price = $521,550 Actual inputs at standard price (SP XAQ) = $? per hour x 30,500" hours = $521,550 $? per hour = $17.10 0.75 hours x $17.10 per hour = $12.83 per game Flexible budget (Standard inputs allowed for good output) (SP x SQ) = $17.10 x 0.75 hours x 42,000* units = $538,650 Efficiency variance = $538,650 - $521,550 = $17,100 F Overhead: $22.80 per game + $12.83 per game + $? per game = $45* per game $? per game = $9.37 per game 0.75 hours x $? per hour = $9.37 per game $? per hour = $12.49 Requirement b Applied = $9.37 per game x 42,000* units = $393,540 Actual - $393,540 = $19,200 U Actual = $412,740