# Accounting for Managers

U5A1 problem 1

ZXC Firm has the following information to determine Predetermine overhead rate for Standard Costing:

Estimated total manufacturing overhead costs $1,000,000

Estimated total amount of the allocation base

at the level of projected activity 10,000 direct hours labor

what is the Predetermined overhead rate?

U5A1 problem 2

Florr Shine Corporation

Selected data for April are given below:

number of units produced 1,000 units

number of actual direct labor hours worked 1,500 hours

total actual direct labor costs 16,500

The standard cost card indicates that 1.5 hours at $10.00 of direct labor hour per unit.

A. complete the following analysis of direct labor cost for the month:

Actual hours of input at the actual rate ??????

Actual hours of input at the standard rate ??????

Standard hours allowed for out at the standard rate ??????

B. Redo the above analysis of direct labor cost for the month of april usign the following formula

Labor rate variance: AH (AR - SR) = ????

Labor Efficiency variance: SR (Ah -Sh) = ?????

U5A1 problem 3

Expireall Corporation is in the finishing business. The following data took place during September:

Number of units produced

Material purchased

material used in production

Cost per foot of material per purchase

The standard cost card indicates that 2.0 feet are used in the production of each unit. The standard cost of each material is $4.50 per foot.

a. Complete the following analysis of direct materials cost for the month of Sept.

Actual quantity of inputs at actual price

Actual quantity of inputs at standard price

Standard quantity allowed for output at standard price

B. Redo the above analysis for direct material for the month of september using the following formulas:

Materials price variance = AQ (AP - SP) =

Materials quantity Variance = Sp (Aq - SQ) =

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#### Solution Summary

The solution answers 3 problems U5A1 problem 3 - Expireall Corporation, U5A1 problem 2 - Florr Shine Corporation, U5A1 problem 1 - ZXC Firm. It computes Predetermined overhead rate, Labor rate variance, Labor Efficiency variance, Materials price variance & Materials quantity Variance