Assignment - 6 $% in the final grade due on November before 11.pm Problem: 1 Vernee MillsInc. is a large producer of men's and women's clothing. The company uses standard costs for all of the product The standard costs and actual costs per unit of product for a recent periode gives below for one of the company's product lines LLL Sari During this period, the company produced 4.0its of the product. A comparison of standard and actual costs for the period on a total cost basis is given below Much There was no inventory of materials and at the beginning the period. During the period. 21.120 metres of materials wate purchased all of which were used in production Required a) For direct materials, compote the price and quantity variances for the period b) For dinect labour, compute the rate and efficiency varunces For variable whead, compute the spending and efficiency Vance Problem: 2 The following in the stundent cost cand five X Company's only product The company manufactured and sold 1.000 units of product during the year. A total of 70.200 metres of material was purchased during the year at cost of 4.20 per te. All of this material was used to manufacture the 1.000 miles. The company records showed no beginning or ending intoties for the year The company worked 29.280 direct lalow hours during the you at a cost of 59 75 perhet. Overhead coal is applied topics on the basis of direct labeur hours. The denominator level direct lahou how was 22.500 h Balet fed overhead cos as shown on the flexible badget wire 5157.500 while actual fred overhead cos were $156,000. Actual vanable overhead costs were $90,000 Required: Compute the direct material price and quantity warunces for the year Compute the direct labourate and efficiency varies Sur the you Compute the variable overhead spending and efficiency varices for the year Compute the fived overhead budget and volume variantes for the year Assignment - 6 5% in the final grade due on November 4" before 11.59pm Problem: 1 Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines: Standard Cost Actual Cost $21.60 $22.22 SIO 80 Standard: 4.0 metres at $5.40 per metre Actual: 4.4 metres at $5.05 per metre Direct Labour: Standard: 1.6 hours at $6.75 per hour Actual: 1.4 hours at $7.30 per hour Variable Overhead: Standard: 16 hours at $2.70 per hour Actual: 1.4 hours at $3.25 per hour Total Cost per Unit SI0.22 5432 S4.55 $16.99 54672 During this period, the company produced 4,800 units of this product. A comparison of standard and actual costs for the period on a total cost basis is given below: Actual Costs: 4,800 units at $36.99 $177.552 Standard Costs: 4,800 units at $36.72 5176256 Difference in Cost-Unfavourable S1.294 There was no inventory of materials on hand at the beginning of the period. During the period, 21,120 metres of materials were purchased, all of which were used in production. Required: a) For direct materials, compute the price and quantity variances for the period b) For direct labour, compute the rate and efficiency variances c) For variable overhead, compute the spending and efficiency variances. Problem: 2 The following is the standard cost card for X Company's only product: Direct materials, 4 metres at $4.00 $16.00 Direct labour, 5 hours at $10.00 $15.00 Variable overhead, 1.5 hours at $3.00 $4.50 Fixed overhead, 1.5 hours at $7.00 ISIO. SO Standard cost per unit 546,00 The company manufactured and sold 18,000 units of product during the year. A total of 70,200 metres of material was purchased during the year at cost of $4.20 per metre. All of this material was used to manufacture the 18,000 units. The company records showed no beginning or ending inventories for the year. The company worked 29,250 direct labour hours during the year at a cost of $9.75 per hour. Overhead cost is applied to products on the basis of direct labour hours. The denominator activity level (direct labour hours) was 22,500 hours. Budgeted fixed overhead costs as shown on the flexible budget were $157,500, while actual fixed overhead costs were $156,000. Actual variable overhead costs were $90,000. Required: a) Compute the direct materials price and quantity variances for the year. b) Compute the direct labour rate and efficiency variances for the year. c) Compute the variable overhead spending and efficiency variances for the year. d) Compute the fixed overhead budget and volume variances for the year