ds cut Calibri (Body) 11A A Copy Paste Format ABC ini ci 0 Labor, and Varlable Overhead Varlances The following summarized manofacnuring daca relate to Brown Corpoaxion's May operations, during which 2,000 finished unis of produer were produced. Normal monthly capacity is 1,100 direct labor hours 10 Direct material Standard (3 lb. $2,00b) Actul (6,400b $2 20Mb) .ww. s6 13 Direct labor 314,080 Standard (0.5 314hr)cwww. Actual (950Prs.$13.70hr.). 15 Variable overhead 13,015 Standard (0.5 w. eSthr) Actual 4,300 31.395 Total $15 20 Determine the materials price and efficiency vanianots, labor rate and efficiency variances, and variable overhead spending and efficiency variances. 25 2) Afler evalating Pima Company's manufacturing process, management decides to establiss standards of 14 hours of direct labor per unit of product and S15 per hour for the labor ras. During Oesober, the company uses 3,720 hours of direct labor at $40,920 otal cost to prodace 4,000 units of product. In November, the company uses 4,560 hours of direet lahor at $54,720 al cost to prodace 3,500 units of product Required 1) Compute the rate variancs, the efficiency variance, and the sotal direct labor cos variance for ach of the se two monn. For tach variance, state whether favorable or unfavorable 2s 2) Interpret the October direct lahor variances. What do you think is happening here? Windwt Conpany made 3,300 bonisheles using 23,200 wurd fect of wond cosing $29000 The company's direct maturak andards for onu booksshelf are & hoard feet of wood at St2 ner hoard foo Required 45 Comput drect materals varances ins ated in man fasturing tune hookshe hes 2) Ierpeat the direct maerialsvarianees What do you hnk sapnenine hete 1 From our textbook Material, Labor, and Variable Overhead Variances The following summarized manufacturin data relate to Brown Corporation's May operations, during which 2,000 finished units of produ were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Unit Costs Total Actual Costs Direct material: Standard (3 lb. $2.00nb.) Actual (6,400 lb. $2.201b.) $ 6 $14,080 Direct labor Standard (0.5 hr. $14/hr.) Actual (950 hrs.$13.70hr.). 13,015 Variable overhead: Standard (0.5 hr. $4/hr.) Actual 4,300 531,395 Total $15 Determine the materials price and efficiency variances, labor rate and efficieney variances, and variab overhead spending and efficiency variances. 2) After evaluating Pima Company's manufacturing process, management decides to establish standards of 14 hours of direct labor per unit of product and $15 per hour for the labor rate During October, the company uses 3,720 hours of direct labor at $40,920 total cost to produce 4,000 units of product. In November, the company uses 4,560 hours of direct labor at $54,720 total cost to produce3,500 units of produet Required 1) Compute the rate variance, the efficiency variance, and the total direct labor cost variance for each of these two months. For each variance, state whether favorable or unfavorable. 2] Interpret the October direct labor variances. What do you th ink is happen ing here? Chock:October rate variano $14,880-F Windser Company made 3,800 booksheves using 23,200 board feet of wood costing $290,000. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12 per board foot. Required 1) Compute the direct materials variances incurred in manufacturing these booksheves 2) Interpret the direct materials variances. What do you think is happening here? Chock: Price vaine, $11,600- s Cut D Copy Calibri (Body) 11A A So Wrap Paste Format | | B | | | u. Material, Labor, and Variable Overhead Varlances The following summarized manufacturing data relate to Brown Corporation's May operations, during which 2.000 finished units of product were produced. Normal monthly capacity is 1.100 direct labor hours Unit Direct material: Actuel (6,400 ib. a $2.2anb) $6 $14,080 Direct labor Standard (0.5 hr.$14/h) Actual (950 hrs. o $13.70) Variable overhead: 13,015 Standard (0.s hr.Shr)u Actual .. 4,300 $31.395 Total $15 Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances. 2 After evaluating Pima Company's manufacturing process, management decides to establish standards of Sin- 1.4 hours of direct labor per unit of product and $15 per hour for the labor rate. Durine October, the company uses 3,720 hours of direct labor at $40,920 total cost to produce 4,000 units of product. in November, the company uses 4,560 hours of direct labor at $54,720 total cost to produce3,500 units of product Required 1] Compute the rate variance, the efficency variance, and the total direct labor cost variance for each of these two months. For each variance, state whether favorable or unfavora ble. 2) Interpret the October direct iabor varances. What do you think is happening here? 3l Windser Company made 3.800 bookshelves using 23,200 board feet of wood costing $290,000. The compary's direct materials standards for one bookshelf are 8 board feet of wood st $12 per board t Required 1) Compute the direct matenas varances incurred n manufactunne these booksheives 2) Interpret the drect materials varances, whatdo you thick is happening here