Question 31

Kopecky Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.

Direct materials (8 kilograms at $2.50 per kilogram) / $20.00
Direct labour (3 hours at $12.00 per hour) / $36.00

During the month of April, the company manufactures 230 units and incurs the following actual costs.

Direct materials (1,900 kilograms) / $4,940
Direct labour (700 hours) / $8,120

Calculate the total, price, and quantity variances for materials and labour.

Total materials variance: / $ /
Materials price variance: / $ /
Materials quantity variance: / $ /
Total labour variance: / $ /
Labour price variance: / $ /
Labour quantity variance: / $ /
uestion 32

The following information was taken from the annual manufacturing overhead cost budget of Fernetti Company.

Variable manufacturing overhead costs / $33,000
Fixed manufacturing overhead costs / $19,800
Normal production level in labour hours / 16,500
Normal production level in units / 4,125
Standard labour hours per unit / 4

During the year, 4,000 units were produced, 16,100 hours were worked, and the actual manufacturing overhead was $54,000. Actual fixed manufacturing overhead costs equalled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labour hours.

(a) / Calculate the total, fixed, and variable predetermined manufacturing overhead rates. (Round your answers to 2 decimal places.)
(b) / Calculate the total, controllable, and volume overhead variances. (Round your answers to 0 decimal places.)
(a)
Item / Amount / Hours / Rate
Variable overhead / $ / / $
Fixed overhead / / /
Total overhead / $ / / $

(b)

Total overhead variance: / $ /
Overhead controllable variance: / $ /
Overhead volume variance: / $ /
Question 33
/ Hi-Tek Labs performs steroid testing services to high schools, colleges, and universities. Because the company deals solely with educational institutions, the price of each test is strictly regulated. Therefore, the costs incurred must be carefully monitored and controlled. Shown below are the standard costs for a typical test.
Direct materials (1 petrie dish at $2 per dish) / $ 2.00
Direct labour (0.5 hours at $20 per hour) / 10.00
Variable overhead (0.5 hours at $8 per hour) / 4.00
Fixed overhead (0.5 hours at $3 per hour) / 1.50
Total standard cost per test / $17.50
The lab does not maintain an inventory of petrie dishes. Therefore, the dishes purchased each month are used that month. Actual activity for the month of May 2009, when 2,000 tests were conducted, resulted in the following.
Direct materials (2,020 dishes) / $ 4,242
Direct labour (995 hours) / 20,895
Variable overhead / 8,100
Fixed overhead / 3,400
Monthly budgeted fixed overhead is $3,600. Revenues for the month were $45,000, and selling and administrative expenses were $2,000.
/
/ Calculate the price and quantity variances for direct materials and direct labour, and for overhead the controllable and volume variances.
Materials price variance: / $ /
Materials quantity variance: / $ /
Labour price variance: / $ /
Labour quantity variance: / $ /
Overhead controllable variance: / $ /
Overhead volume variance: / $ /
/
/ Complete an income statement for management. (If a number is negative enter it in (parenthesis).)
HI-TEK LABS
Income Statement
For the Month Ended May 31, 2009
/ $
/
/
Variances
Materials price / $
Materials quantity /
Labour price /
Labour quantity /
Overhead controllable /
Overhead volume /
Total variances-favourable /
/
/
/ $