6. Amber Manufacturing produces ceramio teapots. Amber allocates overhead based on the number of direct labor hours. The compary is looking into using a standard cost system and has developed the following standards (one "unit" is a batch of 100 teapots): "(Click the icon to view the standards.) Actual cost and operating data from the most recent month are as follows: (2Click the icon to view the actual results.) Al manudacturing overhead is allocated on the basis of direct labor hours. Fiead the requirements 3. Requirement 1. Calculate the standard cost of one batch. Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enber currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the varianoes as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials.] First, determine the formula for the price variance, then compute the price variance for dicect materials. Desermine the formula for the quantity variance, then compule the quantity variance for direct materials. Requirement 2b. Caloulate the direct labor variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor.) First, determine the formula for the rate variance, then compute the rate variance for direct labor. First, debermine the formula for the ekliency variance, then compute the elliciency variance for direct labor. Requirement 2c. Calculate the variable manufacturing overhead varianoes. (Enter the varianoes as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U).) First, debermine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. Variable overhead x(x()=)= Now compube the variable manufacturing overhead ediliency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for variable manufacturing overhead. Variable overhead Requilrement 2d. Calculase the fored manufacturing overhead variances. (Enter the variances as positive numbers. Label the variances as favorable (F) or unfavorable (U) Abbreviafions used: MOH= Manufacturing overhead) Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute t budget variance for fixed manufacturing overhead. FixedMOH=budgetvariance1= Now compute the fored manudacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume variance for fored manufacturing overhead. FixedMOH=volumevariance Requirement 3. Have the company's managers done a good job or a poor job controling materials, labor and overhead costs? Why or why not? Overall, the managers have done a (31) job of controlling materials, labor, and overhead costs. This is evidenced by the fai that they have (32) Requirement 4. Describe how the company's managers can benefit from the standard costing system. (If an input field is not used in the table, leave the input field empty; do not select a label.) The following are benefis of a standard costing system: Do you think the company should continue with the standard cost system? The company (38) 1: Data Table \begin{tabular}{ll} \hline & Standards: \\ & Direct material 40 pounds per batch at $4.00 per pound \\ & Direct labor 2.0 hours per batch at $19.00 per hour \\ & Variable MOH standard rate $3.00 per direct labor hour \\ & Predetermined fixed MOH standard rate $5.00 per drect labor hour \\ & Total budgeted flxed MOH oost $1,100 \\ \hline \end{tabular} Purchased 2,550 pounds at a cost of $3.80 per pound Used 2,100 pounds in producing so batches Actual direct labor cost of $2,277 at an average direct labor cost per hour of $19.80 Actual variable MOH $391 Actual fued MOH $1,400 3: Requirements 1. Cakulate the standard cost of one batch. 2. Calculate the following variances: a. The direct material variances. b. The drect labor variances. c. The variable manufacturing overhead variances. d. The fxed manufacturing overhead variances. 3. Have the company's managers done a good jab or a poor job controling materiats, labor, and overhead costs? Why or why not? 4. Descrbe how the company's managers can beneft from the standard costing system. Do you think the company should continue with the standard cost system? 6. Amber Manufacturing produces ceramio teapots. Amber allocates overhead based on the number of direct labor hours. The compary is looking into using a standard cost system and has developed the following standards (one "unit" is a batch of 100 teapots): "(Click the icon to view the standards.) Actual cost and operating data from the most recent month are as follows: (2Click the icon to view the actual results.) Al manudacturing overhead is allocated on the basis of direct labor hours. Fiead the requirements 3. Requirement 1. Calculate the standard cost of one batch. Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enber currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the varianoes as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials.] First, determine the formula for the price variance, then compute the price variance for dicect materials. Desermine the formula for the quantity variance, then compule the quantity variance for direct materials. Requirement 2b. Caloulate the direct labor variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor.) First, determine the formula for the rate variance, then compute the rate variance for direct labor. First, debermine the formula for the ekliency variance, then compute the elliciency variance for direct labor. Requirement 2c. Calculate the variable manufacturing overhead varianoes. (Enter the varianoes as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U).) First, debermine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. Variable overhead x(x()=)= Now compube the variable manufacturing overhead ediliency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for variable manufacturing overhead. Variable overhead Requilrement 2d. Calculase the fored manufacturing overhead variances. (Enter the variances as positive numbers. Label the variances as favorable (F) or unfavorable (U) Abbreviafions used: MOH= Manufacturing overhead) Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute t budget variance for fixed manufacturing overhead. FixedMOH=budgetvariance1= Now compute the fored manudacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume variance for fored manufacturing overhead. FixedMOH=volumevariance Requirement 3. Have the company's managers done a good job or a poor job controling materials, labor and overhead costs? Why or why not? Overall, the managers have done a (31) job of controlling materials, labor, and overhead costs. This is evidenced by the fai that they have (32) Requirement 4. Describe how the company's managers can benefit from the standard costing system. (If an input field is not used in the table, leave the input field empty; do not select a label.) The following are benefis of a standard costing system: Do you think the company should continue with the standard cost system? The company (38) 1: Data Table \begin{tabular}{ll} \hline & Standards: \\ & Direct material 40 pounds per batch at $4.00 per pound \\ & Direct labor 2.0 hours per batch at $19.00 per hour \\ & Variable MOH standard rate $3.00 per direct labor hour \\ & Predetermined fixed MOH standard rate $5.00 per drect labor hour \\ & Total budgeted flxed MOH oost $1,100 \\ \hline \end{tabular} Purchased 2,550 pounds at a cost of $3.80 per pound Used 2,100 pounds in producing so batches Actual direct labor cost of $2,277 at an average direct labor cost per hour of $19.80 Actual variable MOH $391 Actual fued MOH $1,400 3: Requirements 1. Cakulate the standard cost of one batch. 2. Calculate the following variances: a. The direct material variances. b. The drect labor variances. c. The variable manufacturing overhead variances. d. The fxed manufacturing overhead variances. 3. Have the company's managers done a good jab or a poor job controling materiats, labor, and overhead costs? Why or why not? 4. Descrbe how the company's managers can beneft from the standard costing system. Do you think the company should continue with the standard cost system
