Managerial Accounting: Becton Labs

Attached you will find the practice exercises (2 pgs).

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:

Don't use plagiarized sources. Get Your Custom Essay on
Managerial Accounting: Becton Labs
From $10/Page
Order Essay

Standard
Quantity Standard Price or
Rate Standard
Cost
Direct materials 1.7 ounces $6.30 per ounce $10.71
Direct labor .8 hours $12.50 per hour 10.00
Variable manufacturing overhead .80 hours $2.30 per hour 1.84
$22.55
________________________________________

During November, the following activity was recorded relative to production of Fludex:

a. Materials purchased, 10,600 ounces at a cost of $63,600.
b. There was no beginning inventory of materials; however, at the end of the month, 1,600 ounces of material remained in ending inventory.
c. The company employs 40 lab technicians to work on the production of Fludex. During November, they worked an average of 80.00 hours at an average rate of $13.00 per hour.
d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,400.
e. During November, 4,500 good units of Fludex were produced.

The company’s management is anxious to determine the efficiency of the Fludex production activities.

For direct materials used in the production of Fludex:
(a) Compute the price and quantity variances. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Omit the “$” sign in your response.)

Materials price variance $

Materials quantity variance $

________________________________________

For direct labor employed in the production of Fludex:
(a) Compute the rate and efficiency variances. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)

Labor rate variance $

Labor efficiency variance $

________________________________________

(a) Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)

Variable overhead rate variance $

Variable overhead efficiency variance $

Solution Preview
Please also see the attached file.

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:

Standard
Quantity Standard Price or
Rate Standard
Cost
Direct materials 1.7 ounces $6.30 per ounce $10.71
Direct labor .8 hours $12.50 per hour 10.00
Variable manufacturing overhead .80 hours $2.30 per hour 1.84
$22.55
________________________________________

During November, the following activity was recorded relative to production of Fludex:

a. Materials purchased, 10,600 ounces at a cost of $63,600.
b. There was no beginning inventory of materials; however, at the end of the month, 1,600 ounces of material remained in ending inventory.
c. The company employs 40 lab technicians to work on the production of Fludex. During November, they worked an average of 80.00 hours at an average rate of …

Solution Summary
This solution is comprised of a detailed explanation to compute the price and quantity variances. To continue with the answer click on mycoursewriter.com/

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 20% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with My Course Writer
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 10k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
English 101
na
Customer 452547, March 22nd, 2022
Introduction to Sociology
Amazing! Thank you so much for your hard work, appreciate it!!
Customer 452483, October 24th, 2021
Communications
Well done! I thank you very much!
Customer 452483, July 9th, 2021
English 101
Amazing thank you!
Customer 452615, August 1st, 2022
English 101
Perfect! Thank you so much for all of your hard work and help! Appreciate it!!
Customer 452483, August 30th, 2021
Communications
came in earlier than I thought and has all the sources listed and cited in APA format, overall all perfect!
Customer 452461, May 24th, 2021
Psychology
Thank you for all of your help and hard work, truly appreciate you guys always being there with my hectic schedule. Thank you again!
Customer 452483, September 20th, 2021
Healthcare Writing & Communications
Excellent!! You’re awesome, thank you very much for all of your hard work & help!!
Customer 452483, October 24th, 2021
Communications
Thank you for your hard work; I enjoyed reading the essay and appreciate your writing.
Customer 452483, July 18th, 2021
Sociology
Perfect! Appreciate all of your help! Thank you so much!
Customer 452483, November 14th, 2021
Biology (and other Life Sciences)
Power Point Presentation was great, appreciate all of your hard work. Thank you!
Customer 452483, August 9th, 2021
Business and administrative studies
Great produce and on time!
Customer 452561, November 8th, 2022
1159
Customer reviews in total
96%
Current satisfaction rate
2 pages
Average paper length
47%
Customers referred by a friend
OUR GIFT TO YOU
20% OFF your first order
Use a coupon 20OFF and enjoy expert help with any task at the most affordable price.
Claim my 20% OFF Order in Chat