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The standard direct labor time for producing one pair of original Crocs

The standard direct labor time for producing one pair of original Crocs

Question 1

The standard direct labor time for producing one pair of original Crocs is 0.6 hours and the direct labor rate for producing one pair of original Crocs is $18.50 per hour. During February, 10,000 pairs of original Crocs were produced. Actual direct labor costs were $97,850 for 5,150 hours. Compute the direct labor rate variance and the direct labor efficiency variance for the month of February.

All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.

Question 2

Antique Reproductions, Inc. estimates its manufacturing costs as follows:

Variable Costs

Direct material

$5.50/unit

Direct labor

2.40/unit

Variable overhead

1.00/unit

Fixed Costs

Supervisor’s salary

$15,000

Production facility depreciation

7,500

Other production costs

1,400

Estimate manufacturing costs for manufacturing levels of 9,000 units, 11,000 units, and 13,000 units.

All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.

Question 3

Tiger Company makes a product and uses the following standard unit costs for that product:

Direct material quantity standard

6 pound per unit

Direct material price standard

$ 9 per pound

Direct labor time standard

3.5 hours per unit

Direct labor rate standard

$12 per hour

Variable manufacturing overhead rate standard

$ 6 per machine hour

Fixed manufacturing overhead rate standard

$ 5 per machine hour

Machine hours standard

3 hours per unit

Given the flowing actual cost and usage data, compute the direct labor rate and the direct labor efficiency variances.

All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.

Question 4

Classic British Sports Cars, Inc. specializes in maintaining and restoring sports cars from the 1960s and relies on a flexible budget. For January, 2012, the company projected that its revenue would be $100,000 based on 500 repair jobs at an average cost of $300 and 50 restoration jobs at an average cost of $2,000. Actual revenue for January was $268,000. Is that a favorable or unfavorable variance? What different factors could account for that variance? How should the company adjust its projections as a result of this variance?

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.

Question 5

Hacking Tech, LLC provides security services for corporate computer systems and uses the following information:
Fixed Component Per Month

Variable Component Per Job

Actual Totals for March, 2012
Revenue
$420

$21,500
Tech Analysts Wages

$7,600
$ 7,600
Mobile computer lab

$2,100

$45

$ 4,395
Office expenses

$4,500

$5

$ 4,755
Insurance

$1,200
$ 1,200

The company uses the number of jobs as its measuring activity (for instance, the mobile computer lab expenses for March are $2,100 fixed costs plus $45 per job variable expenses for the $4,395 total mobile computer lab expenses for March).

Prepare a flexible budget performance report showing the company’s activity variances and revenue and spending variances for March.

All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.

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