! 7 Required information (The following information applies to the questions displayed below.) A manufactured product has the following information for June. Part 1 of 2 Standard (5 lbs. @ $8 per lb.) (2 hrs. @ $17 per hr.) (2 hrs. @ $12 per hr.) Direct materials Direct labor Overhead Units manufactured Actual 44,500 lbs. @ $8.20 per lb. 17,400 hrs. @ $17.50 per hr. $218,100 8,800 & 01:57:25 AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable. Ac Cos Standard Cost 00 8 Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Part 2 of 2 Direct materials Direct labor Overhead Units manufactured Standard (5 lbs. @ $8 per lb.) (2 hrs. @ $17 per hr.) (2 hrs. @ $12 per hr.) Actual 44,500 lbs. @ $8.20 per lb. 17,400 hrs. @ $17.50 per hr. $218,100 8,800 X 01:57:10 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost 9 Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. X 01:56:53 Electric $84,888 47,350 37,450 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $191,600 Cost of goods sold 44, 075 Gross profit 57,525 Operating expenses Advertising expense 4,995 Depreciation expense-equipment 10,860 Salaries expense 20, eee Supplies expense 1,930 Rent expense 7,645 Utilities expense 2,975 Total operating expenses 47, ces Net income (loss) $ 10,520 4,280 8,510 17,600 1,730 5,990 2,580 40,690 $(3,240) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2017 Acoustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses 2. Based on contribution to overhead, should the electric guitar department be eliminated? ONo Yes