solution in neat format with step by step calculation

Instant download to solution. Once the payment is made, the solution file link will be auto-mailed to your specified E-mail id. Check your inbox as well as spam folder. You can download the solution file by clicking that link.

1. Fruit Snacks Corp Inc. makes lunchbox style fruit snacks. The owner of the company is setting up a standard cost system, and she has collected the following data for one of the company’s products – fruit chews.

The data below pertain only to the fruits used in the product:

Material requirements, kilograms of fruits per dozen bags 0.95 kilograms

Allowance for waste, kilograms of fruits per dozen bags 0.06 kilograms

Allowance for rejects, kilograms of fruits per dozen bags 0.04 kilograms

Purchase price, fruit $7.50 per kilogram

Purchase discount 4% of purchase price

Shipping cost from the supplier $0.30 per kilogram

Receiving and handling cost $0.10 per kilogram

a.Determine the standard price of a kilogram of fruits. Show calculations

b.Determine the standard quantity of fruits for one dozen bags. Show calculations

2. A Poster Now uses a standard cost system. Job 67 is for the manufacturing of 800 units of the product P100. The company standards for one unit of the product P100 are as follows:

Standard quantity: 11 ounces

Standard price: $3 per ounce

Standard direct labor: 1.5 hours

Standard labor rates: $12 per hour

The job required 8000 ounces of raw material costing $26,100.

a.What is the materials price variance? Show calculations

b. What is the materials quantity variance? Show calculations

3. A Poster Now uses a standard cost system. Job 67 is for the manufacturing of 800 units of the product P100. The company standards for one unit of the product P100 are as follows:

Standard quantity: 11 ounces

Standard price: $3 per ounce

Standard direct labor: 1.5 hours

Standard labor rates: $12 per hour

The job required 8000 ounces of raw material costing $26,100. The job also used 1,250 labor hours at rate of $12.20 per hour.

a.What is the labor rate variance? Show calculations

b. What is the labor efficiency variance? Show calculations

4. Walker Corporation is the distributor of several products. They used a predetermined variable overhead rate based on direct labor hours. In the most recent month, 90,000 items were shipped to customers using 3,500 direct labor hours. The company incurred a total of $12,600 in variable overhead costs. According to the company’s overhead standards, 0.04 direct labor hours are required to fulfil an order for one item and the variable overhead rate is $3.50 per direct labor hours.

a.What is the variable overhead spending variance? Show calculations

b.What is the variable overhead efficiency variance? Show calculations

5. For the third quarter of the year, the following data was reported:

Inspection time 1.4 days

Process time 4.5 days

Wait time 12.0 days (the time between the customer order and the beginning of production)

Queue time 3.9 days

Move time 0.8 days

a.What is the throughput time? Show calculations

b.What is the manufacturing cycle efficiency for the quarter? Show calculations

c. What is the delivery cycle time? Show calculations

Your request to be added to our free Newsletter mailing list was successful. To confirm your subscription, please click the link in the email message that has just been sent to the address you entered.

Newsletter Unsubscribe Submitted

Your request to be unsubscribed from our free Newsletter mailing list was successful. To confirm your intentions to unsubscribe, please click the link in the email message that has just been sent to the address you entered.

Newsletter Unsubscribe Failure

Your request to be unsubscribed from our free Newsletter mailing list was unsuccessful. There is no current subscriber with the email address you entered.

Newsletter Subscribe Failure

Your request to subscribe to our free Newsletter mailing list was unsuccessful. There is already a current subscriber with the email address you entered.