Barberry, Inc., manufactures a product called Fruta. The company uses a standard cost system and has established the following standards for one unit…

[ad_1]

Barberry, Inc., manufactures a product called Fruta. The company uses a standard cost system and has established the following standards for one unit of Fruta:

Don't use plagiarized sources. Get Your Custom Essay on
Barberry, Inc., manufactures a product called Fruta. The company uses a standard cost system and has established the following standards for one unit…
Just from $13/Page
Order Essay

 Standard QuantityStandard Priceor RateStandard Cost  Direct materials   1.3 pounds$5.90 per pound$7.67       Direct labor   0.6 hours$12.10 per hour  7.26       Variable manufacturing overhead   0.6 hours$2.60 per hour  1.56                  $16.49             During June, the company recorded this activity related to production of Fruta:a.

The company produced 3,400 units during June.

b.A total of 8,660 pounds of material were purchased at a cost of $48,496.c.

There was no beginning inventory of materials; however, at the end of the month, 2,200 pounds of material remained in ending inventory.

d.

The company employs 10 persons to work on the production of Fruta. During June, they worked an average of 154 hours at an average rate of $12.70 per hour.

e.

Variable manufacturing overhead is assigned to Fruta on the basis of direct labor-hours. Variable manufacturing overhead costs during June totaled $3,696.

The company’s management is anxious to determine the efficiency of Fruta production activities.Required:1.For direct materials:a.

Compute the price and quantity variances. (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)

     Materials price variance$     (Click to select)UFNone  Materials quantity variance$     (Click to select)NoneUFb.

The materials were purchased from a new supplier who is anxious to enter into a long term purchase contract. Would you recommend that the company sign the contract?

   YesNo2.For labor employed in the production of Fruta:a.

Compute the rate and efficiency variances. (Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)

     Labor rate variance$     (Click to select)UNoneF  Labor efficiency variance$     (Click to select)UFNoneb.

In the past, the 10 persons employed in the production of Fruta consisted of 4 senior workers and 6 assistants. During June, the company experimented with 5 senior workers and 5 assistants. Would you recommend that the new labor mix be continued?

   YesNo3a.

Compute the variable overhead rate and efficiency variances. (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)

     Variable overhead rate variance$     (Click to select)NoneUF  Variable overhead efficiency variance$     (Click to select)NoneUFAnswerBarberry, Inc., manufactures a product called Fruta. The company uses astandard cost system and has established the following standards for one unit ofFruta:1. Compute the direct…



[ad_2]

Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code BANANA