Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Computing Variances and Evaluating Performance Clean Sweep Company produces all-vinyl mats. Each doormat calls for 0.5 meter of vinyl material; the material should cost $3

Computing Variances and Evaluating Performance Clean Sweep Company produces all-vinyl mats. Each doormat calls for 0.5 meter of vinyl material; the material should cost $3 per meter. Standard direct labor hours and labor cost per doormat are 0.3 hour and $6 (0.3 hour $20 per hour), respectively. Currently, the division's standard variable overhead rate is $1.50 per direct labor hour, and its standard fixed overhead rate is $0.80 per direct labor hour. In August, the division manufactured and sold 50,000 doormats. During the month, it used 25,200 meters of vinyl material; the total cost of the material was $73,080. The total actual overhead costs for August were $28,200, of which $18,200 was variable. The total number of direct labor hours worked was 10,800, and the factory payroll for direct labor for the month was $214,920. Budgeted fixed overhead for August was $9,280. Normal monthly capacity for the year was set at 58,000 doormats. 1. Compute for August the a. direct materials price variance $ b. direct materials quantity variance $ c. direct labor rate variance $ d. direct labor efficiency variance $ e. variable overhead spending variance $ f. variable overhead efficiency variance $ g. fixed overhead budget variance $ h. fixed overhead volume variance $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The TL 9000 Guide For Auditors

Authors: Mark Kempf

1st Edition

087389510X, 978-0873895101

More Books

Students also viewed these Accounting questions

Question

What is multiple regression?

Answered: 1 week ago

Question

Differentiate the function. r(z) = 2-8 - 21/2 r'(z) =

Answered: 1 week ago