AutoSave eOff Week 5 Homework Assignment Excel Sign in File Home Insert Draw Page Layout Formulas Data Review OSearch View Help X Conditional Formatting General Calibri 11 Insert A A $% Format as Table Delete Paste I U A Cell Styles Format Clipboard Font Alignment Number Styles Cells A38 fi B J K 1 Basic Varlance Analysis Becton Labs, Inc. produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an 2 elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: 10 points Standard Cost Standard Quantity Standard Price or Rate 2.5 z 4 Direct Materials S 20.00 per ounce 50.00 1.4 hrs 12.50 per hour 17.50 5 Direct Labor Variable Manufacturing Overhead 6 (based on direct labor hours) 1.4 hrs 4,90 S 3.50 per hour 72.40 7 During November, the following activity was recorded relative to production of Fludex: (a) Materials purchased, 12,000 ounces at a cost of $225,000. 10 (b) There was no beginning inventory of materials; however, at the end of the month, 2,500 ounces of material remained in ending inventory. O The company employs 35 lab technicians to work on the production of Fludex. During November, they worked an average of 160 hours at an 11 average rate of $12 per hour. (d) Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Yariable manufacturing overhead costs during 12 November totaled $18,200. 13 (e) During November, 3,750 good units of Fludex were produced. 4 Assgmt 2 + Assgmt 1 759% Type here to search IL AutoSave (Off Week 5 Homework Assignment Excel File Home O Search Insert Draw Formulas Page Layout Review View Help Data X Conditional Formatt ab General 11 A A Calibri Format as Table $ % Paste U A B I Cell Styles Clipboard Styles Font Number Alignment A38 > C 13 (e) During November, 3,750 good units of Fludex were produced. A B D E G H 14 The company's management is anxious to determine the efficiency of Fludex production activities. 15 Required: 16 (a) Compute the direct materials price and quantity variances. State whether it is favorable or unfavorable and explain your reasoning. 17 Materials Price Variance AQ(AP - SP) 18 19 Materials Quantity Variance SP(AQ-SQ) SP-Standard Price $20.00 20 AQ- Actual quantity 12,000 21 22 23 (b) Compute the direct labor rate and efficiency variances. State whether it is favorable or unfavorable and explain your reasoning. 24 Direct Labor Rate Variance AH(AR-SR) 25 26 27 Direct Labor Efficiency Variance AH(AR SR) 28 29 Assgmt 2 + Assgmt 1 759 Type here to search Week 5 Homework Assignment Excel AutoSave Off Help Search Review View File Home Formulas Data Insert Draw Page Layout FConditional Formatting X General 11 A A Calibri Format as Table- Paste A v B I U Cell Styles Alignment Clipboard Styles Number Font A38 A B C D F F G H 28 29 BONUS (c) Compute the variable overhead rate and efficiency variances. State whether it is favorable or unfavorable and explain your 30 reasoning. 31 Variable overhead rate variance AH(AR -SR) 32 33 34 Variable overhead efficiency variance SR(AH -SH) 35 36 37 38 39 40 41 42 43 44 45 A6 Assgmt 2 Assgmt 1 + Type here to search