Juicy Ltd. is a fruit juice manufacturer that uses a standard costing system and flexible budget for factory overhead. Normal volume is 60,000 units per year. Standard cost details for producing one unit (one 2 Litre bottle) of "Sweetie Syrup" is given below: Direct Material (1.35 litres per unit @ $12.60 per litre) $ 17.01 Direct Labour (0.75 hrs per unit @ $22 per hour) $16.50 Factory Overhead $15.00 Total Standard Cost per Unit $48.51 Factory overhead is applied on the basis of standard direct labour hours. The factory overhead budget for April was $77,000 for a budgeted production level of 5,250 units. For the month of April, the following actual results are observed: 7,200 litres of direct material were purchased at a cost of $95,200 The company had beginning direct materials of 450 litres and ending materials of 800 litres for the period. Direct labour usage was 4,100 Direct Labour Hours (DLH) at a cost of $20.00 per DLH. Factory overhead incurred was $79,200 of which $38,500 was considered to be fixed. 5,500 units were sold in the period.
Juicy Ltd. is a fruit juice manufacturer that uses a standard costing system and flexible budget for factory overhead. Normal volume is 60,000 units per year. Standard cost details for producing one unit (one 2 Litre bottle) of "Sweetie Syrup" is given below: Direct Material (1.35 litres per unit @ $12.60 per litre) $ 17.01 Direct Labour (0.75 hrs per unit @ $22 per hour) $16.50 Factory Overhead $15.00 Total Standard Cost per Unit $48.51 Factory overhead is applied on the basis of standard direct labour hours. The factory overhead budget for April was $77,000 for a budgeted production level of 5,250 units. For the month of April, the following actual results are observed: 7,200 litres of direct material were purchased at a cost of $95,200 The company had beginning direct materials of 450 litres and ending materials of 800 litres for the period. Direct labour usage was 4,100 Direct Labour Hours (DLH) at a cost of $20.00 per DLH. Factory overhead incurred was $79,200 of which $38,500 was considered to be fixed. 5,500 units were sold in the period.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 20P: Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The...
Related questions
Question
Calculate:
DMPV
DMUV
VOHSV
VOHEV
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning