Instructions to Students: Please complete the 3 problems below in Excel Each question is worth 50 points. 1. Roadmaster Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,500 tires were as follows: Standard Costs Actual Costs Direct Materials 82,000 lbs. at $5.10 82,600 lbs. at $5.25 Direct Labor 1,650 hrs. at $17.50 1,620 hrs. at $17.40 Factory Overhead Rates per direct labor hr., based on 100% of normal capacity of 1,500 direct labor hrs.: Variable cost, $3.
Instructions to Students: Please complete the 3 problems below in Excel Each question is worth 50 points. 1. Roadmaster Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,500 tires were as follows: Standard Costs Actual Costs Direct Materials 82,000 lbs. at $5.10 82,600 lbs. at $5.25 Direct Labor 1,650 hrs. at $17.50 1,620 hrs. at $17.40 Factory Overhead Rates per direct labor hr., based on 100% of normal capacity of 1,500 direct labor hrs.: Variable cost, $3.10 $5,000 variable cost Fixed cost, $4.90 $7,350 fixed cost Each tire requires 0.30 hours of direct labor. Determine a) The Direct materials price variance b) The Direct materials quantity variance c) Total direct materials cost variance d) The Direct Labor rate variance e) The Direct Labor time variance f) Total direct labor cost variance g) Variable Factory Overhead Controllable variance h) Fixed Factory Overhead volume variance i) Total Factory Overhead cost variance 2. The budget director of Hi Performance Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January 2012: a. Estimated sales for January: Batting helmet 305 units at $70 per unit Football helmet 630 units at $135 per unit b. Estimated inventories at January 1: Direct Materials: Finished products: Plastic 80 lbs Batting helmet 35 units at $40 per unit Foam lining 60 lbs Football helmet 40 units at $60 per unit c. Desired inventories at January 31: Direct Materials: Finished products: Plastic 90 lbs Batting helmet 30 units at $40 per unit Foam lining 55 lbs Football helmet 50 units at $58 per unit d. Direct materials used in production: In manufacture of batting helmet: Plastic 1.20 lbs. per unit of product Foam lining 0.50 lb. per unit of product In manufacture of football helmet: …
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