Question
Direct Materials Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of material per pair of shoes. During
Direct Materials
Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of material per pair of shoes. During July, Sole Purpose Shoe Company incurred actual direct materials costs of $61,321 for 6,890 units of direct materials in the production of 2,150 pairs of shoes.
Complete the following table, showing the direct materials variance relationships for July for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance.
| Actual Cost | Standard Cost | |||||||||
| Actual Quantity | X | Actual Price | Actual Quantity | X | Standard Price | Standard Quantity | X | Standard Price | ||
| fill in the blank e79b1a059078f9c_1 Incorrect | X | $fill in the blank e79b1a059078f9c_2 | fill in the blank e79b1a059078f9c_3 | X | $fill in the blank e79b1a059078f9c_4 | fill in the blank e79b1a059078f9c_5 | X | $fill in the blank e79b1a059078f9c_6 | ||
| = $fill in the blank e79b1a059078f9c_7 | = $fill in the blank e79b1a059078f9c_8 | = $fill in the blank e79b1a059078f9c_9 | ||||||||
| UnfavorableFavorable Direct MaterialsCostPriceQuantityRateTime Variance: | UnfavorableFavorable Direct MaterialsCostPriceQuantityRateTime Variance: | |||||||||
| $fill in the blank e79b1a059078f9c_14 | $fill in the blank e79b1a059078f9c_15 | |||||||||
Direct Labor
Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,880 for 7,320 hours of direct labor in the production of 2,300 pairs of shoes.
Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance.
| Actual Cost | Standard Cost | |||||||||
| Actual Hours | X | Actual Rate | Actual Hours | X | Standard Rate | Standard Hours | X | Standard Rate | ||
| fill in the blank 2bfba0f64043073_1 | X | $fill in the blank 2bfba0f64043073_2 | fill in the blank 2bfba0f64043073_3 | X | $fill in the blank 2bfba0f64043073_4 | fill in the blank 2bfba0f64043073_5 | X | $fill in the blank 2bfba0f64043073_6 | ||
| = $fill in the blank 2bfba0f64043073_7 | = $fill in the blank 2bfba0f64043073_8 | = $fill in the blank 2bfba0f64043073_9 | ||||||||
| UnfavorableFavorable Direct LaborCostPriceQuantityRateTime Variance: | UnfavorableFavorable Direct LaborCostPriceQuantityRateTime Variance: | |||||||||
| $fill in the blank 2bfba0f64043073_14 | $fill in the blank 2bfba0f64043073_15 | |||||||||
| UnfavorableFavorable Total Direct LaborCostPriceQuantityRateTime Variance: | ||||||||||
| $fill in the blank 2bfba0f64043073_18 | ||||||||||
Feedback Area
Feedback
Review Exhibit 7 in the text.
Question Content Area
Budget Performance Report
Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 3,000 pairs of shoes that required 10,500 units of material purchased at $8.20 per unit and 8,100 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $24,300. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance.
Use the data in the following table to prepare the Budget Performance Report for Sole Purpose Shoe Company for September.
| Manufacturing Costs | Standard Price | Standard Quantity | Standard Cost Per Unit |
| Direct materials | $8.40 per unit | 3.60 units per pair | $30.24 |
| Direct labor | $8.50 per hour | 2.80 hours per pair | 23.80 |
| Factory overhead | $2.70 per hour | 2.80 hours per pair | 7.56 |
| Total standard cost per pair | $61.60 |
| Sole Purpose Shoe Company Budget Performance Report For the Month Ended September 30 | |||
| Manufacturing Costs | Actual Costs | Standard Cost at Actual Volume | Cost Variance - (Favorable) Unfavorable |
| Direct materials | $fill in the blank e889bef8c045f88_1 | $fill in the blank e889bef8c045f88_2 | $fill in the blank e889bef8c045f88_3 |
| Direct labor | fill in the blank e889bef8c045f88_4 | fill in the blank e889bef8c045f88_5 | fill in the blank e889bef8c045f88_6 |
| Factory overhead | fill in the blank e889bef8c045f88_7 | fill in the blank e889bef8c045f88_8 | fill in the blank e889bef8c045f88_9 |
| Total manufacturing costs | $fill in the blank e889bef8c045f88_10 | $fill in the blank e889bef8c045f88_11 | $fill in the blank e889bef8c045f88_12 |
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