1.Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department:

Variable overhead costs:Indirect factory labor$180,000Power and light12,000Indirect materials64,000Total variable overhead cost$256,000Fixed overhead costs:Supervisory salaries$ 80,000Depreciation of plant and equipment50,000Insurance and property taxes32,000Total fixed overhead cost162,000Total factory overhead cost$418,000

Assuming that the estimated costs for November are the same as for October, a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required.

Leno Manufacturing CompanyFactory Overhead Cost Budget-Press DepartmentFor the Month Ended November 30Direct labor hours18,00020,00022,000Variable overhead costs:Indirect factory labor$

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$

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$

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Power and lightfill in the blank 4

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Indirect materialsfill in the blank 7

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Total variable factory overhead$

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$

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$

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Fixed factory overhead costs:Supervisory salaries$

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$

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$

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Depreciation of plant and equipmentfill in the blank 16

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Insurance and property taxesfill in the blank 19

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Total fixed factory overhead$

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$

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$

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Total factory overhead$

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$

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$

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2.Income Statement IndicatingStandard CostVariances

The following data were taken from the records of Griggs Company for December:

Administrative expenses$100,800Cost of goods sold (at standard)550,000Direct materials price varianceunfavorable1,680Direct materials quantity variancefavorable(560)Direct labor rate variancefavorable(1,120)Direct labor time varianceunfavorable490Variable factory overhead controllable variancefavorable(210)Fixed factory overhead volume varianceunfavorable3,080Interest expense2,940Sales868,000Selling expenses125,000 an income statement for presentation to management. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry leave it blank.

Griggs CompanyIncome StatementFor the Month Ended December 31

$

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$

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UnfavorableFavorableVariances from standard cost:

$

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$

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$

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Operating expenses:

$

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Total operating expensesfill in the blank 33

$

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Other expense:

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$

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3.Direct Materials and Direct Labor Variance Analysis

Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:

Standard wage per hour$17.40Standard labor time per unit15 min.Standard number of lbs. of brass1.7 lbs.Standard price per lb. of brass$10.50Actual price per lb. of brass$10.75Actual lbs. of brass used during the week12,082 lbs.Number of units produced during the week6,900Actual wage per hour$17.92Actual hours for the week (40 employees 40 hours)1,600

Required:

a.Determine thestandard costper unit for direct materials and direct labor.Round the cost per unit to two decimal places.

Direct materials standard cost per unit$fill in the blank 1

Direct labor standard cost per unit$fill in the blank 2

Total standard cost per unit$fill in the blank 3

b.Determine the direct materialsprice variance, direct materialsquantity variance, and total direct materialscost variance.Round your answers to the nearest whole dollar.Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Materials Price Variance$fill in the blank 4

Direct Materials Quantity Variance$fill in the blank 6

Total Direct Materials Cost Variance$fill in the blank 8

c.Determine the direct laborrate variance, direct labortime variance, and total direct labor cost variance.Round your answers to the nearest whole dollar.Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Labor Rate Variance$fill in the blank 10

Direct Labor Time Variance$fill in the blank 12

Total Direct Labor Cost Variance$fill in the blank 14