Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Elena Martinez employs two workers in her wedding cake bakery. (Click the icon to view the empolyee information and the budgeted quantities and budgeted prices

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Elena Martinez employs two workers in her wedding cake bakery. (Click the icon to view the empolyee information and the budgeted quantities and budgeted prices of direct labor.) During the month of May, the bakery produces 50 cakes. Actual direct manufacturing labor costs are as follows: (Click the icon to view the actual direct labor costs.) Read the requirements. Requirement 1. What is the budgeted cost of direct manufacturing labor for 50 cakes? Select the formula and enter the amounts to calculate the budgeted cost of direct labor for 50 cakes. Requirement 2. Calculate the total direct manufacturing labor price and efficiency variances. Begin by selecting the formula and enter the amounts to calculate the lotal direct labor price variance. Identify each variance as either favorable (F) or Data table The first worker, Gabrielle, has been making wedding cakes for 20 years and is paid $25 per hour. The second worker, Joseph, is less experienced and is paid $15 per hour. One wedding cake requires, on average, 6 hours of labor. The budgeted direct labor quantities for one cake are as follows: That is, each cake is budgeted to require 6 hours of direct manufacturing labor, composed of 50% of Gabrielle's labor and 50% of Joseph's, although sometimes Gabrielle works more hours on a particular cake and Joseph less, or vice versa, with no obvious change in the quality of the cake. Data table Requirements 1. What is the budgeted cost of direct manufacturing labor for 50 cakes? 2. Calculate the total direct manufacturing labor price and efficiency variances. 3. For the 50 cakes, what is the total actual amount of direct manufacturing labor used? What is the actual direct manufacturing labor input mix percentage? What is the budgeted amount of Gabrielle's and Joseph's labor that should have been used for the 50 cakes? 4. Calculate the total direct manufacturing labor mix and yield variances. How do these numbers relate to the total direct manufacturing labor efficiency variance? What do these variances tell you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

4th Edition

0470534788, 978-0470534786

More Books

Students also viewed these Accounting questions