Camping Out Co. manufactures down sleeping bags. Each sleeping bag requires 4 pounds of down and...
Question:
Camping Out Co. manufactures down sleeping bags. Each sleeping bag requires 4 pounds of down and takes .3 hours of direct labor. The standard cost of the down used by Camping Out is $8 per pound and the standard labor cost is $10 per hour. In November, Camping Out purchased and used 15,000 pounds of down for $120,750. During the year, the company manufactured 4,000 sleeping bags. Payroll reported a total of 1,480 direct labor hours at a cost of $14,060.
Instructions:
a. Compute the materials price and quantity variances and indicate whether the variances are favorable or unfavorable.
b. Compute the labor price and quantity variances and indicate whether the variances are favorable or unfavorable.
Direct Materials and Direct Labor Variances:
Management's standards for the quantity and cost of direct materials and direct labor represent what management believes will be necessary for the production process to be completed. At the end of the period, these standards are measured against actual results. When actual results do not match management's standards, the difference is deemed to be a "variance."
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answera. Compute the materials price and quantity variances and indicate whether the variances are favorable or unfavorable.
The direct materials price...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Calculating Direct Materials & Direct Labor Variances
from
Chapter 13 / Lesson 3
6.7K
Learn how to calculate variances with direct materials and direct labor. Variances are changes to the costs an organization has budgeted, they can be either favorable or unfavorable.
Related to this Question
- Great Outdoors Company makes two types of camping tents. Making a standard camping tent requires 4 hours of labor while making a deluxe camping tent requires 10 hours of labor. During the most recent accounting period, the company made 2,000 standard camp
- North Outdoors Company makes two types of camping tents. Making a standard camping tent requires 4 hours of labor while making a deluxe camping tent requires 10 hours of labor. During the most recent accounting period, the company made 2,000 standard camp
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 6.00 yards at $6.00 per yard. Direct labor of 3.00 hours at $17.00 per hour. Overhe
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: 1. Direct material of 5.00 yards at $5.00 per yard. 2. Direct labor of 2.50 hours at $18.00 per hour.
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4.50 yards at $5.25 per yard. Direct labor of 2.00 hours at $18.00 per hour. Overhea
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 6 yards at $5.50 per yard. Direct labor of 3 hours at $16 per hour. Overhead applied
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 5.50 yards at $5.75 per yard. Direct labor of 2.50 hours at $17 per hour. Overhead ap
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: - Direct material of 5.00 yards at $5.25 per yard. - Direct labor of 2.50 hours at $17.00 per hour. - O
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: 1. Direct material of 6.00 yards at $5.25 per yard. 2. Direct labor of 3.00 hours at $18.00 per hour.
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: - Direct material of 4.00 yards at | $5.75 per yard. - Direct labor of 3.00 hours at $18.00 per hour.
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: -Direct material of 4.50 yards at $5.00 per yard. -Direct labor of 2.00 hours at $16.00 per hour. -Ov
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4.00 yards at $5.00 per yard Direct labor of 3.00 hours at $16.00 per hour Overhea
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4.00 yards at $5.50 per yard Direct labor of 2.50 hours at $16.00 per hour Overhead a
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 5.00 yards at $5.25 per yard Direct labor of 2.00 hours at $19.00 per hour Overhead a
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4 yards at $5 per yard Direct labor of 2 hours at $20 per hour Overhead applied per s
- Baltimore Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 5.00 yards at $5.75 per yard Direct labor of 3.00 hours at $19.00 per hour Overhe
- Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 5.50 yards at $5.25 per yard D
- Dreamland pillow company sells the "Old Softy" model for $20 each. One pillow requires two pounds of raw materials and one hour of direct labor to manufacture. Raw material costs $3 per pound and dire
- Camper Company is a sporting goods store. The company sells a tent that sleeps six people. The store expects to sell 230 tents in 2016 and 380 tents in 2017. At the beginning of 2016, Camper Company h
- Camp Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $80,000 per year to inspect compl
- Ozarks Camping Equipment, Inc. has established the following direct-material standards for its two products. || ||Standard Quantity||Standard Price |Standard camping tent|9 yards|$3.50 per yard |Deluxe backpacking tent|4 yards|$5.20 per yard During May,
- Camping Supplies, Inc. manufactures two types of safety strobe lights, one that is visible for one mile and one that is visible for two miles. Manufacturing overhead has been applied on the basis of direct labor costs. Camping Suppliers has gathered some
- Ontario Outdoors is a manufacturer of outdoor items. The company is considering the possibility of offering a new sleeping bag that would sell for $150 each. Cost to manufacture these sleeping bags in
- Hunt Manufacturing makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $72,000 per year to inspect completed tents before they are shipped to customers. Assume that th
- Outback Outfitters sells recreational equipment. One of the company?s products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the
- Please help! Please give step-by-step calculation. Thank you! Mallory Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durabili
- Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $161,700 per month. Required: 1. What is t
- Tent Master produces two lines of tents sold to outdoor enthuslasts. The tents are cut to speclfications Itn department A. In department B the tents are sewn and folded. The activities, costs, and dri
- Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $161,700 per month. 1. What is the break-
- Sleep Corporation manufactures and sells three different types of mattresses. They are referred to as Good, Supreme, and Ultimate mattresses. Stuffing and fluffing time is limited. More time is required to stuff and fluff the pads used in the Supreme and
- Bellingham Company produces a product that requires 8 standard pounds per unit. The standard price is $6.5 per pound. If 3,000 units required 24,500 pounds, which were purchased at $6.37 per pound, wh
- How many yards of material are required at standard per backpack? (Round your answer to 2 decimal places.) Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are gi
- Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $201,600 per month. Required: 1. What is t
- Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $197,400 per month. Required: 1. What is t
- Spring Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $108,000 per year to inspect completed tents before they are shipped to customers. Ass
- Neal Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $60,000 per year to inspect compl
- Fairmount Travel Gear produces backpacks and sells them to vendors who sell them under their own label. The cost of one of its backpacks follows: Materials - $19.60 ; Labor -13.60 ; Variable overhead
- Neal Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $60,000 per year to inspect completed tents before they are shipped to customers. Assume
- Dreamland Company produces pillows. Each pillow has a variable cost of $8 and fixed costs are $78,000 per month. Each pillow sells for $17. If the company produces and sells 65,000 pillows in February, net income for the month will be ____. a. $585,000 b.
- Lewis Hats is planning to sell 600 straw hats. Each hat requires a half pound of straw and a quarter hour of direct labour. Straw costs $0.20 per pound and employees of the company are paid $22 per hour. Lewis has 80 pounds of straw and 40 hats in beginni
- Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are provided in the table below.
- Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company ar
- Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company a
- Cole laboratories make and sell a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard cost per bag Standard quality Direct material $8.00 20 pounds Direct labor $1.10 0.1 hours Variable over
- United Snack Company sells 40-pound bags of peanuts to university dormitories for $60 a bag. The fixed costs of this operation are $671,600, while the variable costs of peanuts are $0.35 per pound. a
- 1. Sweet Dreams, Inc. manufactures bedding sets. The budgeted production is for 52,000 comforters in 2012. Each comforter requires 1.5 hours to cut and sew the material. If cutting and sewing labor co
- Financial analysis of a girl scout camp reveals the following: Fee paid by campers (includes all food and supplies): $500 per week per camper Facility costs, paid by the camp: $100,000 per season (u
- Army-Navy Surplus began March with 70 tents that cost $20 each. During the month, Army- Navy made the following purchases at cost: March 4 100 tents @ $22 = $2,200 19 160 tents @ 24 = 3,840 25 40 tents @ 25 = 1,000 Army-Navy Surplus sold 320 tents, and at
- Trucks arrive at the loading dock of a wholesale grocer at the rate of 1.2 per hour. A single crew consisting of two workers can load a truck in about 30 minutes. Crew members receive $10 per hour
- Saddleback Company makes camping lanterns using a single production process. All direct materials are added at the beginning of the month. March follows:
- Leather Company makes two types of women's handbags. Making a standard handbag requires 2 hours of labor while making a deluxe handbag requires 5 hours of labor. During the most recent accounting period, the company made 2,000 standard handbags and 500 de
- Jacobsen, Inc. is planning to sell 200 buckets and produce 190 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour. Manufa
- Crane WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,070 pounds of plastic to use in its dive masks, at a cost of $6,620. The standard price for the plastic is $1.575 per pound. The company actually used 3,950 pounds o
- Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2020. 1. Sales: quarter 1, 28,000 bags; quarter 2, 43,000 bags. Selling price is $61 per
- Apollo Sports manufacturers fabric tents. The poles are purchased from a vendor, so the only part manufactured is the actual fabric tent. The company uses a sta
- Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $102,000, while the variable costs of grapes are $0.10 per pound. What is the break-even point in bags?
- Bellingham Company produces a product that requires six standard pounds per unit. The standard price is $10 per pound. If 4,000 units used 23,000 pounds, which were purchased at $10.5 per pound, what
- Fanning Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 332,800 pounds of raw materials, the company generates 75,300 pounds of B7, 156,600 pounds of K6, and 100,900 pounds of
- Stuart Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three m
- Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows:
- Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2015. Required: Answer questions g to j on this que
- *********I specifically need help with G-J******* Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2
- Vernon Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning com
- Laredo manufactures Nuts and Bolts from a joint process (cost = $80,000). 5,000 pounds of Nuts can be sold at split-off for $20 per pound; 10,000 pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes, Laredo allocates jo
- Mountain Fun manufactures snowboards. Its cost of making 2,000 bindings is as follows: [TABLE] Lewis will sell bindings to Mountain Fun for $12 each. Mountain Fun would pay $1 per unit to transport the bindings to its manufacturing plant, where it would a
- Foam Pet Mattress Company can sell as many pet bed models A and B that it can produce, but the company has limited production capacity. It can produce two units of A or three units of B per hour and it has 4,000 production hours available. The contributio
- Harrison Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $73,667 and will save the company $10,000 in direct lab
- Last year, Vera Corporation budgeted for production and sales of 20,000 cloth handbags. Vera produced and sold 19,250 handbags. Each handbag has a standard requiring 4 feet of material at a budgeted cost of $2.50 per foot and 45 minutes of sewing time at
- GoWay manufacturers and sells a portable battery-powered transportation device that can be stored in a backpack. The device usually sells for $5,000 per unit. The company normally sells units as quick
- Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from Willow Co. to produce 8,400 units per year for $7 each. Mohave has the following information about its own
- Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from Willow Co. to produce 9,900 units per year for $10.5 each. Mohave has the following information about its o
- Washington Company has developed the following raw material standard for a single unit of one of its products, the Cruiser, 138.6 pounds of Grote lite at a cost of $23 per pound. During a recent month, Washington purchased 36,000 pounds of Grote lite at a
- Baldwin Golf Co. produces golf equipment including a golf bag that sells for $200. Although the company's production capacity is 5,000 bags per year, only 4,000 bags are currently being produced and s
- Lo-bed Company produces a product that requires two standard gallons per unit. The standard price is $20.00 per gallon. If 4,000 units required 8,200 gallons, which were purchased at $1.75 per gallon,
- Lo-bed Company produces that requires two standard gallons per unit. The standard price is $20.00 per gallon. If 4,000 units required 8,200 gallons, which were purchased at $19.75 per gallon, what is
- Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from Willow Co. to produce 8,000 units per year for $7.50
- Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mi
- Air Force Surplus began May 2016 with 100 tents that cost $10 each. During the month, Air Force Surplus made the following purchases at cost: May 6 120 tents $18 = 2,160 18 130 tents @ $25 = 3,250 2
- Pietarsaari Oy, a Finnish company, produces cross-country ski poles that it sells for 31 Euro a pair. Operating at capacity, the company can produce 51,000 pairs of ski poles a year. Costs associated
- Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017. 1. Sales: Quarter 1, 29,400 bags; quarter 2, 42,200 bags. Selling price is $62 per
- Tiiger Farm Supply Company manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of 2020. 1. Sales: Quarter 1, 27,000 bags; quarter 2, 40,000 bags. Selling price is $5
- Lake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, the plant managers have decided to operate three 8-hour shifts instead. The plant is now able to produce 650 boxes per d
- Billy Products operates a small plant in New Mexico that produces dog food in batches. The product sells for $3 per pound. Standard costs (Per batch) for 2015 are: Standard direct labor cost = $15 p
- Dvorak Company produces a product that requires two standard gallons per unit. The standard price is $2.50 per pound. If 1,000 units required 4,500 pounds, which were purchased at $3.00 per pound, wha
- Pure Comfort manufactures and sells mattresses with adjustable air chambers. Pure Comfort has been producing and selling approximately 500,000 units per year. Each units sells for $600, and there are
- Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from Willow Co. to produce 9,700 units per year for $8.5 each. Mohave has the following information about its ow
- High Country Outfitters, Inc. makes backpacks for large sporting goods chains that are sold under the customers store brand names. The accounting department has identified the following overhead costs and cost drivers for the next year: [TABLE] Total pred
- Safari Industries makes balls. The fixed cost of operating the workshop for a month is $500. Each ball requires materials that cost $2 and takes one hour to make. The ball maker is paid $10 per hour. The balls are sold to a wholesaler for $14 each and the
- Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2015. The company president formed a planning committee to prepare a master budget for the first three mon
- Adventure Expeditions offers guided back-country hiking/camping trips in Colombia Andes. Adventure provides a guide and all necessary food and equipment at a fee of $50 per person per day. Adventure c
- Abica Roast Coffee Company produces Columbian coffee in batches of 5,500 pounds. The standard quantity of materials required in the process is 5,500 pounds, which cost $6.00 per pound. Columbian coffe
- Nazaro's Boot Camp Company makes specialty books for the rodeo circuit. On December 31, 2014, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,200 heels at a cost of $8 eac
- Outdoors R Us owns several membership-based campground resorts throughout the Southwest. The company sells campground sites to new members, usually during a get-acquainted visit and tour. The campgrou
- Soft Spot is a manufacturer of futon mattresses. Soft Spot's mattresses are priced at $60, but competition forces the company to offer significant discounts and rebates. As a result, the average
- Green Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Green Bags Company sells the bags in cases of 1,000 bags. The bags come in three sizes: Large, Medi
- Levi Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix
- ABC Unlimited Comp. makes decorative throw pillows for home use. The company sells the pillows to home decor retailers for $14 per pillow. Each pillow requires 1.25 yards of fabric, which the company obtains at a cost of $6 per yard. The company would lik
- Outdoor Optics Company produces binoculars of two quality levels: field and professional. The field model requires four direct-labor hours, while the professional binoculars require six hours. The fir
- A loom operator in a Carolina Textiles factory earns $17 per hour. The employee earns $22 for overtime hours. The operator worked 43 hours during the first week of May, instead of the usual 40 hours.
- Train Company makes units and each unit requires 2 pounds of material at $3 per pound. 500 and 700 units will be built in May and June, respectively. Train keeps material on hand at 20% of the next m
Explore our homework questions and answers library
Browse
by subject