Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost
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Question:
Bullseye Company manufactures dartboards.
Its standard cost information follows:
Standard Quantity | Standard Price (Rate) | Standard Unit Cost | |
---|---|---|---|
Direct materials (corkboard) | 200 sq ft | $2.10 per sq ft | $420 |
Direct labor | 1hr | $10.00 per hr | 10.00 |
Variable manufacturing overhead | 1 hr | $0.40 per hr | 0.40 |
(based on direct labor hours) | |||
Fixed manufacturing overhead | 0.30 | ||
(60,000 / 200,000 units) |
Bullseye has the following actual results for the month of September:
Number of units produced and sold | 180,000 |
Number of square feet of corkboard used | 370,000 |
Cost of corkboard used | $814,000 |
Number of labor hours worked | 188,000 |
Direct labor cost | 1,710,800 |
Variable overhead cost | 73,000 |
Fixed overhead cost | 51,000 |
Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.
1. Calculate the direct materials price, quantity and total spending variances for Bullseye.
2. Calculate the direct labor rate, efficiency and total spending variances for Bullseye.
3. Calculate the variable overhead rate, efficiency and total spending variances for Bullseye.
Indicate the effect of each variance by selecting "F" for favorable - over applied and "U" for unfavorable - under applied.
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Olds
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