ACCTG1314 - 13. 1-.u"ictoria Chocolates. Ltd.....

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Unformatted text preview: 13. 1-.u"ictoria Chocolates. Ltd.. makes premium handcrafted chocolate confections in London. The ownerofthe company is setting up a standard cost system and has collected the following data for one of the company's products. the Empire Truffle. This product is made with the finest white chocolate and various fillings. The data below pertain only to the white chocolate used in the product [the currency is stated in pounds denoted here as E]: Material requirements. kilograms ofwhite chocolate per dozen truffles 113? kilograms Allowance for waste. kilograms ofwhite chocolate per dozen truffles 11112 kilograms Allowance for rejects. kilograms ofwhite chocolate per dozen truffles 11113 kilograms Purchase price. finest grade white chocolate £15 per kilogram Purchase discount 3% Of pum me pme Shipping cost from the supplier in Elelgium £114 per kilogram Receiving and handling cost £111 per kilogram Requlrerrlent 1: Determine the standard price of a kilogram of white chocolate. [Round your answer to E doolmal plaocs. Dmlt the "£"slgn In your response: Standard price E Requlrerrlent 2: Determine the standard quantity of white chocolate for a dozen truffles. [Round your answer to E doolmal plaocs.:| Standard quantity kilograms Requlrerrlent 3: Determine the standard cost ofthe white chocolate in a dozen truffles. [Round your answer to E doolmal plaocs. Dmlt the "£"slgn In your response: Standard cost E 4. Electon 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 unitofFludex. as follows: Standard Standard Price or Standard C uantity Rate Cost Direct materials 1.5 ounces 56.21] per ounce 59.31] Direct labor .fi hours $11.94] per hour ?.14 Variable manufacturing overhead .51] hours £2.51] per hour 1.51] 51194 Curing November. the following activity was recorded relative to production of Fludex: a. Materials purchased. 11.551] ounces at a cost ofSBB.145. b. There was no beginning inventory of materials; however. at the end of the month. 2.1!]?! ounces of material remained in ending inventory. c. The company employs 44] lab technicians to work on the production of Fludex. During November. they worked an average of 5?.51] hours at an average rate of512.5fl per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct laborahours. Variable manufacturing overhead costs during November totaled 55.11511 e. During November. 4.51]?! good units of Fludex were produced. The company's management is an}: ious to determine the efficiency ofthe Fludex production activities. Requirement 1: For direct materials used in the production of Fludex. Compute the price and quantity variances. [Indicate the effect of each varlanoe by selecting "F" for favorable. "U" for unfavorable. and "None" for no effect [l.e.. zero varlanoe}. Input all amounts as positive values. let the "5" sign In your response} Materials price variance 5 [Click to select} $ Materials quantity variance 5 [Click to select} $ Reg ulremen'l 2: For direct labor employed in the production of Fludex. Compute the rate and efficiency variances. [Indicate the effect of each varlanoe by selecting "F" for favorable. "U" for unfavorable. and "None" for no effect [l.e.. zero varlanoe}. Input all amounts as positive values. Round your answers to the nearest dollar amount. Dmlt the "5"slgn In your response} Labor rate variance 5 [Click to select $ Labor efficiency variance 5 [Click to select ‘ ..,..-..,..- 1 Reg ulrement 3: [a} Compute the variable overhead rate and efficiency variances. [lndlcatethe effect of each varlanoe by selecting "F" for favorable. "U" for unfavorable. and "None" for no effect [l.e.. zero varlanoe}. Input all amounts as positive values. Round your answers to the nearest dollar amount. let the "S"slgn In your response} Variable overhead s pending variance 5 [Click to select} ¢ Variable overhead effic iency variances [Click to select} : [b}What relation can you see between this effic iency variance and the labor efficiency variance? [Click to select} = ...
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ACCTG1314 - 13. 1-.u"ictoria Chocolates. Ltd.....

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