Question

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours 2.50 ounces 0.50 hours 0.50 hours Standard Price or Rate $28.00 per ounce $13.00 per hour $ 3.60 per hour Standard Cost $70.00 6.50 1.80 $78.30 Total standard cost per unit During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 13,500 ounces at a cost of $361,800. b. There was no beginning inventory of materials; however, at the end of the month, 2,900 ounces of material remained in ending inventory. C. The company employs 21 lab technicians to work on the production of Fludex. During November, they each worked an average of 140 hours at an average pay rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,400. e. During November, the company produced 4,200 units of Fludex.
Req 1B and Req 2B are just YES/NO questions. The important questions are Req 1A, Req 2A, and Req 3.

Answer 1

16200 F 2800 U YES Answer Mateial Price Variance (AQ*AP)-(AQ*SP) Matrial Quanity Varaince (AQ*SP)-(SQ*SP) would you recommand the sing the Contract Labor rate Variance (AH*AR)-(AH*SR) labor Efficiency Varaince (AH*SR)-(SH*SR) Would you Recommand the New Labor Mix Overhead Rate Variance (AH*AR)-(AH*SR) Overhead Efficiency Varaince (AH*SR)-(SH*SR) 4410 F 10920 U ΝΟ 6184 F 3024 U

SP AP Data Direct Material Standard Price 28.00 Per ounce Standard quantity Per unit 2.5 Ounces Standard Quantity for Actual Output SQ 10500 Ounces Actual Output 4200 Units Actual Quantity Purchased AQP 13500 Ounces Actual Quanity Used AQ 10600 Ounces Actual Price of Material 26.80 Per ounce Direct Labor Standard Rate I SRL 13 Per hour Standard hours per unit 0.5 hours Standard Hours for Actual output 2100 Hours Actual Output 4200 Units Actual hours Worked =21*140 AH 2940 hours Actual Rate AR 11.50 Per hour Varaible OH Standard Rate SR 3.60 Per hour Standard hours per unit 0.50 hours Standard Hours for Actual output 2100 Hours Actual Output 4200 Units Actual hours Worked =21*140 AH 2940 hours Actual rate=4400/2940 1 1.50 Per hour SH ART