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 $62,211 for 6,990 units of direct materials in the production of 2,175 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 02ee9e052fbd019_1 | X | $fill in the blank 02ee9e052fbd019_2 | fill in the blank 02ee9e052fbd019_3 | X | $fill in the blank 02ee9e052fbd019_4 | fill in the blank 02ee9e052fbd019_5 | X | $fill in the blank 02ee9e052fbd019_6 | ||
= $fill in the blank 02ee9e052fbd019_7 | = $fill in the blank 02ee9e052fbd019_8 | = $fill in the blank 02ee9e052fbd019_9 | ||||||||
Unfavorable Direct Materials Price Variance: | Favorable Direct Materials Quantity Variance: | |||||||||
$fill in the blank 02ee9e052fbd019_14 | $fill in the blank 02ee9e052fbd019_15 | |||||||||
Favorable Total Direct Materials Cost Variance: | ||||||||||
$fill in the blank 02ee9e052fbd019_18 |
Feedback
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 $65,610 for 7,290 hours of direct labor in the production of 2,100 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 6228ddffafa3f94_1 | X | $fill in the blank 6228ddffafa3f94_2 | fill in the blank 6228ddffafa3f94_3 | X | $fill in the blank 6228ddffafa3f94_4 | fill in the blank 6228ddffafa3f94_5 | X | $fill in the blank 6228ddffafa3f94_6 | ||
= $fill in the blank 6228ddffafa3f94_7 | = $fill in the blank 6228ddffafa3f94_8 | = $fill in the blank 6228ddffafa3f94_9 | ||||||||
Unfavorable Direct Labor Rate Variance: | Unfavorable Direct Labor Time Variance: | |||||||||
$fill in the blank 6228ddffafa3f94_14 | $fill in the blank 6228ddffafa3f94_15 | |||||||||
Unfavorable Total Direct Labor Cost Variance: | ||||||||||
$fill in the blank 6228ddffafa3f94_18 |
Feedback
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 f097a406afea053_1 | $fill in the blank f097a406afea053_2 | $fill in the blank f097a406afea053_3 |
Direct labor | fill in the blank f097a406afea053_4 | fill in the blank f097a406afea053_5 | fill in the blank f097a406afea053_6 |
Factory overhead | fill in the blank f097a406afea053_7 | fill in the blank f097a406afea053_8 | fill in the blank f097a406afea053_9 |
Total manufacturing costs | $fill in the blank f097a406afea053_10 | $fill in the blank f097a406afea053_11 | $fill in the blank f097a406afea053_12 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started