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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.l0 per kilogram
a. Determine the standard price of a kilogram of fruits. Show computations
b. Determine the quantity of fruits for one dozen bags. Show computations
2. Posters 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 computations
b. What is the materials quantity variance? Show computations
3. Posters 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 ouncesStandard price: $3 per ounceStandard direct labor: 1.5 hoursStandard 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 a 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 fulfill 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
