DATA TABLES AND REQUIREMENTS ARE IN PICTURES. Thank you!
and has diveloped the tolowing standarts (one "urir is a batch of 100 thapets) (Click tha loon lo vwiw the atandarda) Actual coet and operaling data from the most recent merthi aren as folcus: (CEick the icon to view the ectual rasulte,) As manufacturing overhead is abocated on the besis of erect labor hourh. Requirement 1. Calculate the standare ecet of one batch. Finst, determine the formula for the price variasce, then compule the price variance tor direct materials: Firat, detarmine the fomula for the prico varlance, then compute the price variance for direct materials. Dotemine the formula for the quantity varianoe, then compule the quantity variance for direct materials. Requirement 2b. Calculate the direct labor variances. (Enter the variances as positive numbers. Enter currency amounts to the neavest oent and your arswurs to the nourcat whicle dollar. Labol the varlances as favorable (F) or untagorable (U). Abbreviations used: DL = Direct labor) Fist, determine the formula for the rate variance, then compute the rate varance for creot labor. Finst, determine the formula for the efficiancy variance, then compute the etficiency variance for direct labor: Requirement 2c. Calculate the variable manufacturing overhead variances. (Enter the variances as posittive numbers. Enter currency amounts to the nearest cent and you the nearest whole dollar, Labol the variances as favorable (F) or unfavorable (U).) First, determine the formula for the rate variance, then compule the rate variance for variable manufacturing overhead. Now compute the variable manufacturing overhesd efficiency variance; First determine the formula for the efficiency variance, then compute the efficiency variance for variz manufacturing overhead. Requirement 2d. Calculate the fixed manulacturing overhead varianoes, (finier the variances an posilive numbers. Label the varianons as fivorable (F) or urfavorable (U). Abbreviations used: MOH = Manulacturing overhead) Begin by computing the foxed manufactyring overhead budget variance. First determine the formula for the budget variance, then compute the budgot variance for fixied manufachuri overhead. Now compute the fixed manufacturing overhasd volume variance. First determine the formala for the volume variance, then compute the volume variance for fxed manulacturing overhead, Fixed MOy volime variance Requirement 3. Have the company/s managens dane a good job or a poor job controlling materials, labor and ovectead costa? Why or why not? Overal, the managers have done a job of controling materiab, fabos, and ovorhed costs. This is evidancod by the fact that they have a labol.) Data table Standards: Direct material 30 pounds per batch at $2.00 per pound Direct labor 4.0 hours per batch at $13.00 per hour Variable MOH standard rate $7.00 per direct labor hour Predetermined fixed MOH standard rate $3.00 per direct labor hour Total budgeted fixed MOH cost \$980 Data table Purchased 1,800 pounds at a cost of $1.60 per pound Used 1,400 pounds in producing 40 batches Actual direct labor cost of $2,565 at an average direct labor cost per hour of $13.50 Actual variable MOH$1,387 Actual fixed MOH \$1,180 Requirements 1. Calculate the standard cost of one batch. 2. Calculate the following variances: a. The direct material variances. b. The direct labor variances. c. The variable manufacturing overhead variances. d. The fixed manufacturing overhead variances. 3. Have the company's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why or why not? 4. Describe how the company's managers can benefit from the standard costing system. Do you think the company should continue with the standard cost system
