Glove Co makes high quality, hand-made gloves which it sells for an average of $180 per pair. The standard cost of labour for each pair is $42 and the standard labour time for each pair is three hours. In the last quarter, Glove Co had budgeted production of 12,000 pairs, although actual production was 12,600 pairs in order to meet demand.37,000 hours were used to complete the work and there was no idle time. The total labour cost for the quarter was $531,930.At the beginning of the last quarter, the design of the gloves was changed slightly. The new design required workers to sew the company’s logo on to the back of every glove made and the estimated time to do this was 15 minutes for each pair. However, no-one told the accountant responsible for updating standard costs that the standard time per pair of gloves needed to be changed. Similarly, although all workers were given a 2% pay rise at the beginning of the last quarter, the accountant was not told about this either. Consequently, the standard was not updated to reflect these changes.When overtime is required, workers are paid 25% more than their usual hourly rate.Required:(a) Calculate the total labour rate and total labour efficiency variances for the last quarter. (2 marks)(b) Analyse the above total variances into component parts for planning and operational variances in as much detail as the information allows. (6 marks)(c) Assess the performance of the production manager for the last quarter. (7 marks)
Glove Co makes high quality, hand-made gloves which it sells for an average of $180 per pair. The standard cost of labour for each pair is $42 and the standard labour time for each pair is three hours. In the last quarter, Glove Co had budgeted production of 12,000 pairs, although actual production was 12,600 pairs in order to meet demand.
37,000 hours were used to complete the work and there was no idle time. The total labour cost for the quarter was $531,930.
At the beginning of the last quarter, the design of the gloves was changed slightly. The new design required workers to sew the company’s logo on to the back of every glove made and the estimated time to do this was 15 minutes for each pair. However, no-one told the accountant responsible for updating standard costs that the standard time per pair of gloves needed to be changed. Similarly, although all workers were given a 2% pay rise at the beginning of the last quarter, the accountant was not told about this either. Consequently, the standard was not updated to reflect these changes.
When overtime is required, workers are paid 25% more than their usual hourly rate.
Required:
(a) Calculate the total labour rate and total labour efficiency variances for the last quarter. (2 marks)
(b) Analyse the above total variances into component parts for planning and operational variances in as much detail as the information allows. (6 marks)
(c) Assess the performance of the production manager for the last quarter. (7 marks)
相关考题：
Quality control charts show a characteristic of the product or service against:A . the specification limitsB . customer requirementsC . control limits based on three standard deviations in each directionD . control limits based on six standard deviations in each directionE . A and D only
Which of the following are among Phil Crosby's "absolutes of quality'.A . the performance of standard is zero defectsB . do everything right the first time, each timeC . constantly improve each product and each serviceD . the measurement system is the cost of nonconformanceE . A and D only
129 Quality control charts show a characteristic of the product or service against:A. the specification limits.B. customer requirements.C. control limits based on three standard deviations in each direction.D. control limits based on six standard deviations in each direction.E. A and D only
159 Which of the following are among Phil Crosby's "absolutes of quality'.A. the performance of standard is zero defectsB. do everything right the first time, each timeC. constantly improve each product and each serviceD. the measurement system is the cost of nonconformanceE. A and D only
175 Quality control charts show a characteristic of the product or service against:A. the specification limitsB. customer requirementsC. control limits based on three standard deviations in each directionD. control limits based on six standard deviations in each directionE. A and D only
May I ask what the standard of your securities’ payment is?A.Each gets paid twenty Yuan per hourB.Each gets paid twelve Yuan per hourC.Thirty Yuan for each fellow per hourD.Fifteen Yuan for each security guard per hour
There are 4 words marked A), B), C) and D ) in each group. Choose the one which underlined part has a different pronunciation from the other three ________ A.goneB.doneC.anotherD.glove
(b) During the inventory count on 31 December, some goods which had cost $80,000 were found to be damaged.In February 2005 the damaged goods were sold for $85,000 by an agent who received a 10% commission outof the sale proceeds. (2 marks)Required:Advise the directors on the correct treatment of these matters, stating the relevant accounting standard whichjustifies your answer in each case.NOTE: The mark allocation is shown against each of the three matters.
(c) In August 2004 it was discovered that the inventory at 31 December 2003 had been overstated by $100,000.(4 marks)Required:Advise the directors on the correct treatment of these matters, stating the relevant accounting standard whichjustifies your answer in each case.NOTE: The mark allocation is shown against each of the three matters.
1 The Great Western Cake Company (GWCC) is a well-established manufacturer of specialist flour confectioneryproducts, including cakes. GWCC sells its products to national supermarket chains. The company’s success duringrecent years is largely attributable to its ability to develop innovative products which appeal to the food selectors withinnational supermarket chains.The marketing department of Superstores plc, a national supermarket chain has asked GWCC to manufacture a cakeknown as the ‘Mighty Ben’. Mighty Ben is a character who has recently appeared in a film which was broadcastaround the world. The cake is expected to have a minimum market life of one year although the marketing departmentconsider that this might extend to eighteen months.The management accountant of GWCC has collated the following estimated information in respect of the Mighty Bencake:(1) Superstores plc has decided on a launch price of ￡20·25 for the Mighty Ben cake and it is expected that thisprice will be maintained for the duration of the product’s life. Superstores plc will apply a 35% mark-up on thepurchase price of each cake from GWCC.(2) Sales of the Mighty Ben cake are expected to be 100,000 units per month during the first twelve months.Thereafter sales of the Mighty Ben cake are expected to decrease by 10,000 units in each subsequent month.(3) Due to the relatively short shelf-life of the Mighty Ben cake, management has decided to manufacture the cakeson a ‘just-in-time’ basis for delivery in accordance with agreed schedules. The cakes will be manufactured inbatches of 1,000. Direct materials input into the baking process will cost ￡7,000 per batch for each of the firstthree months’ production. The material cost of the next three months’ production is expected to be 95% of thecost of the first three months’ production. All batches manufactured thereafter will cost 90% of the cost of thesecond three months’ production.(4) Packaging costs will amount to ￡0·75 per cake. The original costs of the artwork and design of the packagingwill amount to ￡24,000. Superstores plc will reimburse GWCC ￡8,000 in the event that the product iswithdrawn from sale after twelve months.(5) The design of the Mighty Ben cake is such that it is required to be hand-finished. A 75% learning curve willapply to the total labour time requirement until the end of month five. Thereafter a steady state will apply withlabour time required per batch stabilising at that of the final batch in month five. The labour requirement for thefirst batch of Mighty Ben cakes to be manufactured is expected to be 6,000 hours at ￡10 per hour.(6) A royalty of 5% of sales revenue (subject to a maximum royalty of ￡1·1 million) will be payable by GWCC to theowners of the Mighty Ben copyright.(7) Variable overheads are estimated at ￡3·50 per direct labour hour.(8) The manufacture of the Mighty Ben cake will increase fixed overheads by ￡75,000 per month.(9) In order to provide a production facility dedicated to the Mighty Ben cake, an investment of ￡1,900,000 will berequired and this will be fully depreciated over twelve months.(10) The directors of GWCC require an average annual return of 35% on their investment over 12 months and18 months.(11) Ignore taxation and the present value of cash flows.Note: Learning curve formula:y = axbwhere y = average cost per batcha = the cost of the initial batchx = the total number of batchesb = learning index (= –0·415 for 75% learning rate)Required:(a) Prepare detailed calculations to show whether the manufacture of Mighty Ben cakes will provide the requiredrate of return for GWCC over periods of twelve months and eighteen months. (20 marks)
2 The Rubber Group (TRG) manufactures and sells a number of rubber-based products. Its strategic focus is channelledthrough profit centres which sell products transferred from production divisions that are operated as cost centres. Theprofit centres are the primary value-adding part of the business, where commercial profit centre managers areresponsible for the generation of a contribution margin sufficient to earn the target return of TRG. The target return iscalculated after allowing for the sum of the agreed budgeted cost of production at production divisions, plus the costof marketing, selling and distribution costs and central services costs.The Bettamould Division is part of TRG and manufactures moulded products that it transfers to profit centres at anagreed cost per tonne. The agreed cost per tonne is set following discussion between management of the BettamouldDivision and senior management of TRG.The following information relates to the agreed budget for the Bettamould Division for the year ending 30 June 2009:(1) The budgeted output of moulded products to be transferred to profit centres is 100,000 tonnes. The budgetedtransfer cost has been agreed on a two-part basis as follows:(i) A standard variable cost of $200 per tonne of moulded products;(ii) A lump sum annual charge of $50,000,000 in respect of fixed costs, which is charged to profit centres, at$500 per tonne of moulded products.(2) Budgeted standard variable costs (as quoted in 1 above) have been set after incorporating each of the following:(i) A provision in respect of processing losses amounting to 15% of material inputs. Materials are sourced ona JIT basis from chosen suppliers who have been used for some years. It is felt that the 15% level of lossesis necessary because the ageing of the machinery will lead to a reduction in the efficiency of output levels.(ii) A provision in respect of machine idle time amounting to 5%. This is incorporated into variable machinecosts. The idle time allowance is held at the 5% level partly through elements of ‘real-time’ maintenanceundertaken by the machine operating teams as part of their job specification.(3) Quality checks are carried out on a daily basis on 25% of throughput tonnes of moulded products.(4) All employees and management have contracts based on fixed annual salary agreements. In addition, a bonusof 5% of salary is payable as long as the budgeted output of 100,000 tonnes has been achieved;(5) Additional information relating to the points in (2) above (but NOT included in the budget for the year ending30 June 2009) is as follows:(i) There is evidence that materials of an equivalent specification could be sourced for 40% of the annualrequirement at the Bettamould Division, from another division within TRG which has spare capacity.(ii) There is evidence that a move to machine maintenance being outsourced from a specialist company couldhelp reduce machine idle time and hence allow the possibility of annual output in excess of 100,000 tonnesof moulded products.(iii) It is thought that the current level of quality checks (25% of throughput on a daily basis) is vital, althoughcurrent evidence shows that some competitor companies are able to achieve consistent acceptable qualitywith a quality check level of only 10% of throughput on a daily basis.The directors of TRG have decided to investigate claims relating to the use of budgeting within organisations whichhave featured in recent literature. A summary of relevant points from the literature is contained in the followingstatement:‘The use of budgets as part of a ‘performance contract’ between an organisation and its managers may be seen as apractice that causes management action which might lead to the following problems:(a) Meeting only the lowest targets(b) Using more resources than necessary(c) Making the bonus – whatever it takes(d) Competing against other divisions, business units and departments(e) Ensuring that what is in the budget is spent(f) Providing inaccurate forecasts(g) Meeting the target, but not beating it(h) Avoiding risks.’Required:(a) Explain the nature of any SIX of the eight problems listed above relating to the use of budgeting;(12 marks)
Which of the following represents a wiring standard for twisted pair cables?() A.FiberB.T568AC.IEEE1394D.CAT5
When ordering switches for a new building, which of the following is the BEST way for the technician to determine the number of switches to put in each network closet?() A. Review the architectural plans to see how many drops go to each closet.B. Count the number of rooms near each closet and standardize eight drops per room.C. Wireless is the new standard and no network switches will be needed in the building,D. Count the number of phone ports and configure two network ports for each phone port.
The following financial information relates to HGR Co:Statement of financial position at the current date (extracts)The finance director has completed a review of accounts receivable management and has proposed staff training and operating procedure improvements, which he believes will reduce accounts receivable days to the average sector value of 53 days. This reduction would take six months to achieve from the current date, with an equal reduction in each month. He has also proposed changes to inventory management methods, which he hopes will reduce inventory days by two days per month each month over a three-month period from the current date. He does not expect any change in the current level of accounts payable.HGR Co has an overdraft limit of $4,000,000. Overdraft interest is payable at an annual rate of 6·17% per year, with payments being made each month based on the opening balance at the start of that month. Credit sales for the year to the current date were $49,275,000 and cost of sales was $37,230,000. These levels of credit sales and cost of sales are expected to be maintained in the coming year. Assume that there are 365 working days in each year.Required:(a) Discuss the working capital financing strategy of HGR Co. (7 marks)(b) For HGR Co, calculate:(i) the bank balance in three months’ time if no action is taken; and(ii) the bank balance in three months’ time if the finance director’s proposals are implemented.Comment on the forecast cash flow position of HGR Co and recommend a suitable course of action.(10 marks)(c) Discuss how risks arising from granting credit to foreign customers can be managed and reduced.(8 marks)
Your vessel is proceeding down a channel，and you see a pair of range lights that are in line dead ahead．The chart indicates that the direction of this pair of lights is 229°T，and variation is 6°W．If the heading of your vessel at the time of the sighting is 232°per standard magnetic compass，what is the correct deviation ________．A.3°EB.9°EC.3°WD.9°W
The time interval between the transmission of signals from a pair of Loran-C stations is very closely controlled and operates with ______．A.An atomic time standardB.Daylight Savings TimeC.Eastern Standard TimeD.Greenwich Mean Time
My new glasses cost me__the last pair that I bought.A.three timesB.three times as much asC.three times as muchD.three times much as
The earliest telephones required a different pair of wires for each phone ___ you wished to connect.A.thatB.whichC.whereD.to which
Which three of these are characteristics of UTP cable？（）A、The wires in each pair are wrapped around each otherB、An insulating material covers each of the individual copper wires in itC、It comes in eight-pair wire bindlesD、EMI and RFI cause only limited degradation to signals running over itE、It comes in seven categoriesF、IT has an external diameter of approximately 0 28 inches
Which of the following represents a wiring standard for twisted pair cables?（）A、FiberB、T568AC、IEEE1394D、CAT5
When ordering switches for a new building, which of the following is the BEST way for the technician to determine the number of switches to put in each network closet?（）A、Review the architectural plans to see how many drops go to each closet.B、Count the number of rooms near each closet and standardize eight drops per room.C、Wireless is the new standard and no network switches will be needed in the building,D、Count the number of phone ports and configure two network ports for each phone port.
问答题Kara attends a university where students study for an average (arithmetic mean) of 13.4 hours per week. How many hours per week does Kara study? (1) The standard deviation of study time at Kara’s school is 2.8. (2) Kara’s study time is one standard deviation away from the mean.
单选题The time interval between the transmission of signals from a pair of Loran-C stations is very closely controlled and operates with（）.AAn atomic time standardBDaylight Savings TimeCEastern Standard TimeDGreenwich Mean Time
单选题What is the minimum standard for making an eye splice in a wire to be used as cargo gear（）．AMake three tucks with full strands，remove half the wires from each strand，and make two more tucksBMake four tucks in each strand，cut away every other strand，and make two more tucks with each remaining strandCMake four tucks with each full strandDMake six tucks with each strand，removing a few wires from each strand as each additional tuck is made
多选题Which three of these are characteristics of UTP cable？（）AThe wires in each pair are wrapped around each otherBAn insulating material covers each of the individual copper wires in itCIt comes in eight-pair wire bindlesDEMI and RFI cause only limited degradation to signals running over itEIt comes in seven categoriesFIT has an external diameter of approximately 0 28 inches
单选题The customer service department had fewer complaints last quarter, which challenges the ______ that the quality of our product is worsening.AattentionBfunctionCexceptionDperception
单选题Which of the following is true according to the passage? ______.AThe Division of Labour makes work more interesting.BSpecialisation could solve the problem of unemployment.CAdam Smith put forward the idea of the Division of Labour.DAdam Smith insisted that each worker be better paid.