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can someone help me? Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people
can someone help me?
"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a goo job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $28,450 overall manufacturing cost variance is lows: The following additional information is available for the year just completed: a. The company manufactured 15.000 units of product during the year. b. A total of 73,000 feet of material was purchased during the year at a cost of $4.65 per foot. All of this matenial was used to manufacture the 15,000 units produced. There were no beginning or ending inventories for the year. c. The company worked 24,500 direct labor-hours during the year at a direct labor cost of $790 per hour d. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead cosis follow. Required: 1. Compute the materials price and quantity variances for the year. 2. Compute the labor rate and efficiency variances for the yeat. 3. For manufacturing overhead compute: a. The variable overhead rate and efficiency variances for the year b. The fixed overhead budget and volume variances for the year. (For all requirements, indicate the effect of each varionce by selecting "F" for favorable, "U" for unfavoroble, and "None" for no Step by Step Solution
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