Delta Products prepares its budgets on the basis of standard costs. A responsibility report is prepared...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Delta Products prepares its budgets on the basis of standard costs. A responsibility report is prepared monthly showing the differences between master budget and actual results. Variances are analyzed and reported separately. There are no materials inventories. The following information relates to the current period: Standard costs (per unit of output) Direct materials, 7 gallons @ $4.00 per gallon $ 28 Direct labor, 5.00 hours @ $44.00 per hour Factory overhead. Variable (25% of direct labor cost) Total standard cost per unit 220 55 $303 Actual costs and activities for the month follow: Materials used Output Actual labor costs Actual variable overhead 16,020 gallons at $1.98 per gallon 2,060 units 5,700 hours at $41.80 per hour $58,200 Required: Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct materials: Price variance Efficiency variance Direct materials cost variance Direct labor: Price variance Efficiency variance Direct labor cost variance Variable overhead: Price variance Efficiency variance Variable overhead cost variance Delta Products prepares its budgets on the basis of standard costs. A responsibility report is prepared monthly showing the differences between master budget and actual results. Variances are analyzed and reported separately. There are no materials inventories. The following information relates to the current period: Standard costs (per unit of output) Direct materials, 7 gallons @ $4.00 per gallon $ 28 Direct labor, 5.00 hours @ $44.00 per hour Factory overhead. Variable (25% of direct labor cost) Total standard cost per unit 220 55 $303 Actual costs and activities for the month follow: Materials used Output Actual labor costs Actual variable overhead 16,020 gallons at $1.98 per gallon 2,060 units 5,700 hours at $41.80 per hour $58,200 Required: Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct materials: Price variance Efficiency variance Direct materials cost variance Direct labor: Price variance Efficiency variance Direct labor cost variance Variable overhead: Price variance Efficiency variance Variable overhead cost variance
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Jacks Tracks sells 24,000 custom-designed GoKarts per year. These GoKarts are sold evenly throughout the year. The manufacturer charges Jack a $50 processing cost per order, and Jack incurs a...
-
The Rainmaker Entertainment Inc. income statement and balance sheet on MyAccountingLab provide details about the company's long-term debt and equity. Use the data to answer the following questions:...
-
Jill Harrington, a manager at Jennings Company, is considering several potential capital investment projects. Data on these projects follow: Initial investment Annual cash inflows PV of cash inflows...
-
7. How do legal corporations protect shareholders from liability? If you formed a small corporation, would you be able to avoid repaying a bank loan from your community bank if the corporation went...
-
Evaluating an Ethical Dilemma: Earnings, Inventory Purchases, and Management Bonuses Micro Warehouse was a computer software and hardware online and catalog sales company. * A Wall Street Journal...
-
Struggling on 7 - 5 . Would only the sale of stock be reported or would the sale and investment be reported? If so where would they even go on Tax documents? 7 - 6 is more i am unsure of . I have...
-
answer this question FIRST POSTING: Visit the site for Competition bureau and under Resources, check the Media Centre or click here, Choose one article, case or snippet of news from there that...
-
Give an example of a program that will cause a branch penalty in the three-segment pipeline of Sec. 9-5. Example: Three-Segment Instruction Pipeline A typical set of instructions for a RISC processor...
-
Are Google, Microsoft, and Apple acting ethically? Are they being socially responsible? Eager to benefit from the economic growth and the job creation that foreign direct investments generate, many...
-
On May 1, 2011, Lenny's Sandwich Shop loaned \$20,000 to Joe Lopez for one year at 6 percent interest. Required Answer the following questions: a. What is Lenny's interest income for 2011? b. What is...
-
Tipton Corporations balance sheet indicates that the company has \($300,000\) invested in operating as sets. During 2006, Tipton earned operating income of \($45,000\) on \($600,000\) of sales....
-
Norton Car Wash Co. is considering the purchase of a new facility. It would allow Norton to increase its net income by \($90,000\) per year. Other information about this proposed project follows:...
-
10 Match the correct pairs based on the concepts we have covered in class - Laura works in a small firm where the different departments are arranged according to the professional specialization of...
-
Prove that the mean heat capacities C P H and C P S are inherently positive, whether T > T 0 or T < T 0 . Explain why they are well defined for T = T 0 .
-
Information about the cash flows for a four-year LO8 financial project are listed in the following table. The cash flows are assumed to follow a triangular distribution. The cost of implementing the...
-
Nina is trying to decide in which of four shopping centers to locate her new boutique. Some cater to a higher class of clientele than others, some are in an LO8 indoor mall, some have a much greater...
-
Using a spreadsheet for Problem 23, determine how Ninas ability to negotiate a lower rent at location 3, thereby raising its ranking to good, will affect the LO8 overall rankings of the four...
Study smarter with the SolutionInn App