A29 A fx B C D E 1 Problem 4: DM and DL variances 2 3 Quick Fix Company manufactures Custom shelves in a small manufacturing facility 4 The shelves are made from wood. Quick Fix has 50 employees. 5 Each employee presently provides 36 hours of labor per week. 6 Information about a production week is as follows: 7 8 Standard wage per hour 9 Standard labor time per unit 10 Standard number of yards of wood per unit 11 Standard price per yard of wood 12 Actual price per yard of wood 13 Actual yards of wood used during the week $8.50 $18.40 45 minutes 2.4 yards 6,702 yards 3,000 units $19.00 $9.25 14 Number of units produced during the week 15 Actual wage per hour 16 Actual hours for the week (50 employees x 36 hours 17 18 Required: 19 1800 hours 20 A. Determine the followings: (Round answers to two decimal places.) 21 22 i) Direct materials standard cost per unit: 23 SP x SQ per unit 24 25 ) Direct labor standard cost per unit: 26 SR x SH per unit 27 28 iii) Total standard cost per unit: 29 30 31 B. Determine the followings Material Variances 32 33 Direct Materials Price Variance 34 (AP-SP) x AQ for Actual production 35 36 Direct Materials Quantity Variance - 37 (AQ-SQ) for Actual production x SP 38 39 Total Direct Materials Cost Variance $794 Unfavorable 40 DMPV + DMQV 41 42 C. Determine the followings Labor Variances 43 44 Direct Labor Rate Variance: 45 (AR-SR) x AH for Actual Production 46 47 Direct Labor Time Variance: 48 (AH-SH) for Actual Production x SR 49 50 Total Direct Labor Cost Variance: 51 DLRV + DLTV 52 Problem1 Problem2 Problem3 Problem4 Problem 5 Ready EO Type here to search