Tuesday, 24 June 2014
barberry inc manufacture a product call fr...
barberry inc manufacture a product call fruta this companyuse a standard
cost system and has establish the data base for one unt of fruta/direct
material=1.5 pound-standard price of rate=6.00 per pound -standard
cost=9.00/direct labor=0.6 hrs/standard price rate=12.00 per hr standard
cost=7.20/variable overhead=0.6hr standard price of rate=2.50hr
standard cost=1.50/during june this company record activity relate to
production of fruta/1.this company produce 3000 unit during june/a total
of 8000 pound of material were purchase at a cost of 46k/there were no
beginning inventory of material how ever at the end of month 2000 pound
of material remain in ending inventory/the company have 10 staff to work
on the production of fruta.during june they work a vegrafe of 160hrs at
a rate of 12.50hr/variable overhead is assign to fruta on the basis of
direct labor hr'variable overhead cost during junne total
3,600.question- this company management is anxious to determine the
efficiency of fruta production activities/I need to prepare direct
material. compute the price and quantity variance/the material were
purchase from a new supplier who wants to enter into a long term
purchase contract.would u recommend that the company sign the contract
and why need to explain./question for labor staff in the productin of
fruta/compute the rate and efficiency variance/in the past 10 staff
include4- senior workers and-6 assitants would u recommend that the new
staff be mix and explain./compute the variable overhead and efficiency
variances what relations can u see between this efficiency and the labor
efficiency varience/can u assit me
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