Question
Current Attempt in Progress Concord, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for
Current Attempt in Progress Concord, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Standard Price Standard Quantity Standard Cost Direct materials $3 per yard 2.00 yards $6.00 Direct labor $14 per DLH 0.75 DLH 10.50 Variable overhead $3.20 per DLH 0.75 DLH 2.40 Fixed overhead $3 per DLH 0.75 DLH 2.25 $21.15 Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased 82,100 yards of fabric and used 93,700 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $460,600, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 601,000 shirts, using 451,000 direct labor hours. Though the budget for November was based on 45,600 shirts, the company actually produced 42,100 shirts during the month. Variable Overhead Budget Annual Budget Per Shirt NovemberActual Indirect material $454,000 $1.20 $49,300 Indirect labor 295,000 0.75 31,400 Equipment repair 201,000 0.30 20,100 Equipment power 49,500 0.15 7,100 Total $999,500 $2.40 $107,900 Fixed Overhead Budget Annual Budget NovemberActual Supervisory salaries $265,000 $21,500 Insurance 348,000 27,600 Property taxes 85,000 6,900 Depreciation 325,000 26,000 Utilities 210,000 20,200 Quality inspection 276,000 24,600 Total $1,509,000 $126,800 (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Direct material price variance $enter the direct material price variance in dollars select an option Direct material quantity variance $enter the direct material quantity variance in dollars select an option (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct labor rate variance $enter the direct labor rate variance in dollars select an option Direct labor efficiency variance $enter the direct labor efficiency variance in dollars select an option (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable overhead spending variance $enter the variable overhead spending variance in dollars select an option Variable overhead efficiency variance $enter the variable overhead efficiency variance in dollars select an option (d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Fixed overhead spending variance $enter the fixed overhead spending variance in dollars select an option
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