Description Mirada Manufacturing produces stained glass lamp shades. The standard cost card for a lamp shade is as follows: Standard Quantity Standard Cost 1.25 pounds $ 6.00 0.25 DLH 9.00 3.00 4.50 $22.50 Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per shade Standard Price $4.80/pound $36.00 per DLH $12.00 per DLH $18.00 per DLH Ron Shop, operations manager, became upset when he reviewed the unfavorable variances for April. He asked Heidi Cotton, controller, for more information. She provided the following overhead budgets, along with the actual results for April. 0.25 DLH 0.25 DLH The company purchased and used 115,000 pounds of glass during the month. lass purchases during the month were made at $4.35 per pound. The direct labor payroll ran $744,150, with an actual hourly rate of $36.30 per direct labor hour. The annual budgets were based on the production of 1,000,000 shades, using 250,000 direct labor hours. The company actually produced 82,000 shades during the month. Indirect material Indirect labor Equipment repair Equipment power Total Variable Overhead Budget Annual Budget $1,350,000 900,000 600,000 150,000 $3,000,000 Per Shade $1.35 0.90 0.60 0.15 $3.00 April - Actual $108,000 101,100 49,200 36,900 $295,200

Description Mirada Manufacturing produces stained glass lamp shades. The standard cost card for a lamp shade is as follows: Direct materials Direct labor Standard Price 54.80/pound Standard Quantity Standard Cost 1.25 pounds $6.00 Variable overhead Fixed overhead $36.00 per DLH $12.00 per DLH $18.00 per DLH 0.25 DLH 9.00 0.25 OLH 0.25 0 3.00 Total standard cost per shade 4.30 $22.50 Ron Shop, operations manager, became upset when he reviewed the unfavorable variances for April. He asked Heidi Cotton, controller, for more information. She provided the following overhead budgets, along with the actual results for April The company purchased and used 115,000 pounds of glass during the month Glass purchases during the month were made at $4.35 per pound The direct labor payroll ran 5744,150, with an actual hourly rate of $36.30 per direct labor hour The annual budgets were based on the production of 1,000,000 shades, using 250,000 direct labor hours The company actually produced 82,000 shades during the month. Variable Overhead Budget Annual Budget Indirect material $1,350,000 Per Shade $1.35 April-Actual $108,000 Indirect labor 900,000 0.90 101,100 Equipment repar 600,000 0.60 49,200 Equipment power 150.000 0.15 36.900 Total $3.000.000 53.00 $295.200