{"id":75545,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/sterling-company_standard-cost-system-2"},"modified":"2017-08-18T07:18:21","modified_gmt":"2017-08-18T07:18:21","slug":"sterling-company_standard-cost-system-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/sterling-company_standard-cost-system-2\/","title":{"rendered":"Sterling Company_standard cost system"},"content":{"rendered":"

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1. The Sterling Company uses a standard cost system in which manufacturing overhead costs are applied to the units of the company\u2019s single product on the basis of direct labor-hours (DLHs). The standard cost card for the product follows:<\/p>\n

Standard Cost Card-per unit of product:<\/p>\n

Direct materials, 4 yards at $3.50 per yard $14<\/p>\n

Direct labor, 1.5 DLHs at $8 per DLH 12<\/p>\n

Variable overhead, 1.5 DLHs at $2 per DLH 3<\/p>\n

Fixed overhead, 1.5 DLHs at $6 per DLH 9<\/p>\n

The following data pertain to last year\u2019s activities:<\/p>\n

\u2013 The company manufactured 18,000 units of product during the year.<\/p>\n

\u2013 A total of 70,200 yards of material was purchased during the year at a cost of $3.75 per yard. All of this material was used to manufacture the 18,000 units.<\/p>\n

\u2013 The company worked 29,250 direct labor hours during the year at a cost of $7.80 per hour.<\/p>\n

\u2013 The denominator activity level was 22,500 direct labor hours.<\/p>\n

\u2013 Budgeted fixed manufacturing overhead costs were $135,000 while actual manufacturing overhead costs were $133,200.<\/p>\n

\u2013 Actual variable manufacturing overhead costs were $61,425.<\/p>\n

Required (15 points):<\/strong><\/p>\n

a. Compute the direct materials price and quantity variances for the year.<\/p>\n

b. Compute the direct labor rate and efficiency variances for the year.<\/p>\n

c. Compute the variable overhead spending and efficiency variances for the year.<\/p>\n

d. Compute the fixed overhead budget and volume variances for the year.<\/p>\n

e. Discuss some possible reasons for the direct labor variances that you computed.<\/p>\n<\/fieldset>\n

<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

1. The Sterling Company uses a standard cost system in which manufacturing overhead costs are applied to the units of the company\u2019s single product on the basis of direct labor-hours (DLHs). The standard cost card for the product follows: Standard Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-75545","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/75545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=75545"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/75545\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=75545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=75545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=75545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}