Best Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using 141,000 square feet of extruded vinyl purchased at $1.25 per square foot. Production required 480 direct labor hours that cost $15.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.30 per square foot. The labor standard was 0.026 direct labor hour per fender, at a standard cost of $14.00 per hour.
Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.)
Direct Materials Cost Variance = ???
Direct labor cost variance = ???
Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.)
Direct materials efficiency variance = ???
Direct labor efficiency variance = ???
Formula Variance Direct materials cost variance II (AC - SC) AQ = 7,050 F Direct labor cost variance s and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). ad; SC = standard cost; SQ = standard quantity.) Variance Select the required formulas, compute th (Abbreviations used: AC = actual cost; AC (AC - SC) * AQ (AC - SC) * SQ (AQ - SQ) * AC Direct materials efficiency variance (AQ - SQ) * SC Direct labor efficiency variance Actual FOH - Allocated FOH Actual FOH - Budgeted FOH Does the pattern of variances suggest Be Bugeted FOH - Allocated FOH The direct materials cost variance combined with the ng trade-offs? Explain. direct materials efficiency variance suggests that managers may have used direct materials. The net effect on the total direct materials variance is The direct labor cost variance combined with the direct labor efficiency variance suggests that managers may have used workers who performed more efficiently. The net effect on the total direct labor variance is Formula Variance Direct materials cost variance II (AC - SC) AQ = 7,050 F Direct labor cost variance s and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). ad; SC = standard cost; SQ = standard quantity.) Variance Select the required formulas, compute th (Abbreviations used: AC = actual cost; AC (AC - SC) * AQ (AC - SC) * SQ (AQ - SQ) * AC Direct materials efficiency variance (AQ - SQ) * SC Direct labor efficiency variance Actual FOH - Allocated FOH Actual FOH - Budgeted FOH Does the pattern of variances suggest Be Bugeted FOH - Allocated FOH The direct materials cost variance combined with the ng trade-offs? Explain. direct materials efficiency variance suggests that managers may have used direct materials. The net effect on the total direct materials variance is The direct labor cost variance combined with the direct labor efficiency variance suggests that managers may have used workers who performed more efficiently. The net effect on the total direct labor variance is Does the pattern of variances suggest Best Fender's managers have been making trade-offs? Explain. The direct materials cost variance combined with the direct materials efficiency variance suggests that managers may have used direct materials. The net effect on the total direct materials variance is The direct labor cost variance combined with the direct labor efficiency variance suggests that managers may have used workers who performed more efficiently. The net effect on the total direct labor variance is more skilled (higher-paid) Choose from any list or enter any number in the input fields and then continue to the next question. lesser skilled (lower-paid) Does the pattern of variances suggest Best Fender's managers have been making trade-offs? Explain. The direct materials cost variance combined with the direct materials efficiency variance suggests that managers may have used direct mate n the total direct materials variance is favorable The unfavorable abor cost variance combined with the direct labor efficiency variance suggests that managers may have used ore efficiently. The net effect on the total direct labor variance is work Choose from any list or enter any number in the input fields and then continue to the next
