Adams Manufacturing Company produces a component part of a top secret military communication device Standard production and cost data for the part, Product X, follow Planned production 24,000 units Per unit direct materials 1 50 pounds $ 2 10 per pound Per unit direct labor 2 60 hours $ 8 50 per hour Total estimated fixed overhead costs $ 549,600 Adams purchased and used 38,640 pounds of material at an average cost of $2 15 per pound Labor usage amounted to 60,660 hours at an average of $8 57 per hour Actual production amounted to 24,700 units Actual fixed overhead costs amounted to $587,600 The company completed and sold all inventory for $1,990,000 Required Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity Calculate the materials price and usage variances Indicate whether the variances are favorable (F) or unfavorable (U) Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours Calculate the labor price and usage variances Indicate whether the variances are favorable (F) or unfavorable (U) Calculate the predetermined overhead rate, assuming that Adams uses the number of units as the allocation base Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U) Determine the amount of gross margin Adams would report on the year end income statement Required A Required B Required C Required D Required E Required F Required G Calculate the predetermined overhead rate, assuming that Adams uses the number of units as the allocation base (Round your answer to 2 decimal places ) Predetermined overhead rate per unit Reguir Required A Required B Required C Required D Required E Required F Required G Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U) (Select None if there is no effect (i e , zero variance) ) Spending variance Volume variance Required A Required B Required C Required D Required E Required F Required G Determine the amount of gross margin Adams would report on the year end income statement (Round intermediate calculations to the nearest whole dollar ) Gross margin

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Posted on Aug 17, 2024

Adams Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow:


Planned production		24,000	units
Per unit direct materials		1.50	pounds	@	$	2.10	per pound
Per unit direct labor		2.60	hours	@	$	8.50	per hour
Total estimated fixed overhead costs	$	549,600

Adams purchased and used 38,640 pounds of material at an average cost of $2.15 per pound. Labor usage amounted to 60,660 hours at an average of $8.57 per hour. Actual production amounted to 24,700 units. Actual fixed overhead costs amounted to $587,600. The company completed and sold all inventory for $1,990,000.

Required

Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.
Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).
Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.
Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).
Calculate the predetermined overhead rate, assuming that Adams uses the number of units as the allocation base.
Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U).
Determine the amount of gross margin Adams would report on the year-end income statement.

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Required A Required B Required C Required D Required E Required F Required G Calculate the predetermined overhead rate, assuming that Adams uses the number of units as the allocation base. (Round your answer to 2 decimal places.) Predetermined overhead rate per unit Reguir > Required A Required B Required C Required D Required E Required F Required G Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Spending variance Volume variance Required A Required B Required C Required D Required E Required F Required G Determine the amount of gross margin Adams would report on the year-end income statement. (Round intermediate calculations to the nearest whole dollar.) Gross margin