Question
Current Attempt in Progress Sheffield Company has developed the following standard costs for its product for 2022: SHEFFIELDCOMPANY Standard Cost Card Product A Cost Component
Current Attempt in Progress
Sheffield Company has developed the following standard costs for its product for 2022:
SHEFFIELDCOMPANY Standard Cost Card | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Product A | |||||||||||||||
Cost Component | Standard Quantity | Standard Price | = | Standard Cost | |||||||||||
Direct materials | 4 pounds | $3 | $12 | ||||||||||||
Direct labor | 3 hours | 8 | 24 | ||||||||||||
Manufacturing overhead | 3 hours | 4 | 12 | ||||||||||||
$48 |
The company expected to produce 31,600 units of Product A in 2022 using 95,800 direct labor hours.
Actual results for 2022 are as follows: | |||
33,000 units of Product A were produced. | |||
Actual direct labor costs were $793,760 for 96,800 direct labor hours worked. | |||
Actual direct materials purchased and used during the year cost $368,500 for 134,000 pounds. | |||
Actual variable overhead incurred was $172,000 and actual fixed overhead incurred was $212,000. |
Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or unfavorable.
(a) | Materials Quantity Variance | $enter a dollar amount | select an option Not ApplicableUnfavorableFavorable | |||
---|---|---|---|---|---|---|
(b) | Total Direct Labor Variance | $enter a dollar amount | select an option FavorableUnfavorableNot Applicable | |||
(c) | Direct Labor Quantity Variance | $enter a dollar amount | select an option UnfavorableNot ApplicableFavorable | |||
(d) | Direct Materials Price Variance | $enter a dollar amount | select an option Not ApplicableFavorableUnfavorable | |||
(e) | Total Overhead Variance | $enter a dollar amount | select an option FavorableUnfavorableNot Applicable |
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