Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price
Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate
Sedona Company set the following standard costs for one unit of its product for this year. The $4.10 ($2.90 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 63,000 units per month. The following monthly flexible budget information is also available.During the current month, the company operated at 60% of capacity, employees worked 726,000 hours, and the following actual overhead costs were incurred.
Required information [The following information applies to the questions displayed below.) A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard 5 lbs. @ $8 per lb. 3 hrs. @ $16 per hr. 3 hrs. @ $11 per hr Actual 37,400 lbs. @ $8.10 per lb. 21,900 hrs. @ $16.60 per hr. $ 250,500 7,400 Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost Required information [The following information applies to the questions displayed below. A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard 5 lbs. @ $8 per lb. 3 hrs. @ $16 per hr. 3 hrs. @ $11 per hr. Actual 37,400 lbs. @ $8.10 per lb. 21,900 hrs. @ $16.60 per hr. $ 250,500 7,400 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost Standard Co Required information [The following information applies to the questions displayed below.) Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 Ibs. @ $2.00 per Ib.) Direct labor (20 hrs. @ $4.50 per hr.) overhead (20 hrs. @ $2.90 per hr.) Fixed overhead (20 hrs. @ $1.20 per hr.) Total standard cost $ 60.00 90.00 58.00 24.00 $232.00 The $4.10 ($2.90 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 63,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 60% 65% 70% 37,800 40,950 44,100 756,000 819,000 882,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $2,192,400 982,800 $3,175,200 $2,375,100 982,800 $3,357,900 $2,557,800 982,800 $3,540,600 During the current month, the company operated at 60% of capacity, employees worked 726,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $2,120,000 1,065,000 $3,185,000 During the current month, the company operated at 60% of capacity, employees worked 726,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $2,120,000 1,065,000 $3,185,000 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead. Predetermined OH Rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total variable and total fixed overhead variances and classify each as favorable or unfavorable. (Indicate the selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) --------At 60% of Operating Capacity-------- Standard DL Overhead Costs Actual Results Variance Hours Applied Variable overhead costs Fixed overhead costs Total overhead costs L L L L
