Journalize the entries to record (a) the purchase of the tomatoes and (b) the tomatoes used in production. Titus records
standard costs and variances in its accounts.
142. Using the following information, prepare a factory overhead cost budget for Jacob Company where the total factory
overhead cost is $206,500 at normal capacity (100%). Include capacity at 60%, 80%, 100%, and 120%. Total variable
cost is $15.25 per unit and total fixed costs are $54,000. The information is for the month ending October 31. (Hint:
Determine units produced at normal capacity.)
143. Sally’s Chocolate Company makes gourmet cupcakes which are sold by the dozen. Compute the standard cost for
one dozen cupcakes, based on the following standards:
Standard materials quantity:
4.25 cups of ingredients at $0.56 per cup
1.10 hours at $8.30 per hour
$3.80 per direct labor hour
144. Compute the standard cost for one pair of boots, based on the following standards for each pair of boots:
Standard materials quantity:
1.25 yards of leather at $35.00 per yard
9 hours at $25.75 per hour
$1.75 per direct labor hour
145. The following information is for the standard and actual costs for Happy Corporation:
Standard Costs:
Budgeted units of production 16,000 [80% (or normal) capacity]
Standard labor hours per unit 4
Standard labor rate $26 per hour
Standard material per unit 8 lbs.
Standard material cost $12 per pound
Standard variable overhead rate $15 per labor hour
Budgeted fixed overhead $640,000
Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity.
Actual Costs:
Actual production 16,500 units
Actual material purchased and used 130,000 pounds
Actual total material cost $1,600,000
Actual labor 65,000 hours
Actual total labor costs $1,700,000
Actual variable overhead $1,000,000
Actual fixed overhead $640,000
Determine (a) the direct materials quantity variance, price variance, and total cost variance; (b) the direct labor time
variance, rate variance, and total cost variance; and (c) the factory overhead volume variance, controllable variance, and
total factory overhead cost variance. (Note: Do not round interim calculations.)
146. Using the following information, prepare a factory overhead cost budget for Andover Company where the total
factory overhead cost is $75,500 at normal capacity (100%). Include capacity at 75%, 90%, 100%, and 110%. Total
variable cost is $6.25 per unit and total fixed costs are $38,000. The information is for the month ending August 31. (Hint: