Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (cork board) 2.5 sq. ft. $
Bullseye Company manufactures dartboards. Its standard cost information follows: |
Standard Quantity | Standard Price (Rate) | Standard Unit Cost | |||||
Direct materials (cork board) | 2.5 | sq. ft. | $ | 2.00 | per sq. ft. | $ | 5.00 |
Direct labor | 1 | hr. | $ | 14.00 | per hr. | 14.00 | |
Variable manufacturing overhead (based on direct labor hours) | 1 | hr. | $ | 0.50 | per hr. | 0.50 | |
Fixed manufacturing overhead ($40,000 160,000 units) | 0.25 | ||||||
Bullseye has the following actual results for the month of September: |
Number of units produced and sold | 140,000 | |
Number of square feet of corkboard used | 360,000 | |
Cost of corkboard used | $ | 756,000 |
Number of labor hours worked | 148,000 | |
Direct labor cost | $ | 1,938,800 |
Variable overhead cost | $ | 72,000 |
Fixed overhead cost | $ | 50,000 |
Required: |
1. | Calculate the direct materials price, quantity, and total spending variances for Bullseye. (Do not round your intermediate calculations.) |
Direct Materials Price Variance | Unfavorable | |
Direct Materials Quantity Variance | Unfavorable | |
Direct Spending Variance | Unfavorable |
2. | Calculate the direct labor rate, efficiency, and total spending variances for Bullseye. (Do not round your intermediate calculations.) |
Direct Labor Rate Variance | Favorable | |
Direct Labor Efficient Variance | Unfavorable | |
Direct Labor Spening Variance | Favorable |
3. | Calculate the variable overhead rate, efficiency, and total spending variances for Bullseye. (Do not round your intermediate calculations.) |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started