Flandro Company uses a standard cost system and sets it predetermined overhead rate on the basis of direct labor hours.

1. Create a new standard cost card that separates the variable manufacturing overhead
2. Compute the materials and labor variances for the year

PLEASE HAVE YOUR ANSWER FORMATTED LINE BY LINE SO I CAN EASILY MATCH IT UP TO THE TEMPLATE FOR EASIER UNDERSTANDING. PLEASE MAKE REMEMBER QUANTITY, PRICE, & TOTAL

4 5,000 25,000 59,000 o in Total 13.20 12.00 16.80 42.00 3 Comprehensive Standard Cost Variances (10 points) Flandro Company uses a standard cost system and sets it predetermined overhead rate on the basis of direct labor hours 5 Input Data 6 Budgeted data for Fiandro Company for the current year is as follows: 7 8 Denominator activity (direct labor-hours) 9 Variable manufacturing overhead $ 10 Fixed manufacturing overhead 11 12 The current standard cost for Flandro is shown below: 13 Description Quantity Price 15 Direct materials (yards) 3 $ 4.40 $ 16 Direct labor hours 1 $ 12.00 $ 17 MOH (140% of direct labor cost) 1 $ 16.80 $ 18 Standard cost per unit $ 19 20 Actual production during the year was 6,000 units and they incurred the following costs: 21 22 Description Quantity Price Number of actual units produced 24 Materials purchased (yards) 24,000 $ 4.80 $ 25 Materials used in production fin yards) Direct labor cost incurred (hours) 5,800 S 13.00 $ 27 Actual variable manufacturing overhead cost $ 28 Actual fixed manufacturing overhead 29 30 Required: 31 1 Create a new standard cost card that separates the variable manufacturing overhead 32 per unit and the fixed manufacturing overhead per unit. 33 34 Description Quantity Price 35 Direct materials (yards) $ 4.40 $ 36 Direct labor hours $ 12.00 $ 37 Variable manufacturing overhead 1 $ 5.00 $ 1 38 Fixed manufacturing overhead $ 11.80 $ ST $ 39 Standard cost per unit 40 41 2 Compute the materials and labor variances for the year Total 6,000 115,200 18,500 75,400 29,580 60,400 26 3 1 www DN 00 Total 13.20 12.00 5.00 11.80 42.00 D E 2. Compute the materials and labor variances for the year Total Calculation of materials costs: Actual quantity of DM purchased at actual unit price Actual quantity of DM purchased at standard unit price Actual quantity of DM used at standard price Standard quantity of DM allowed for output at standard unit price Calculation of materials variances: Unfavorable (Favorable) Price variance Quantity variance Totals materials variance Total Calculation of labor costs: Actual hours of labor at actual rate Actual hours of labor at standard rate Standard quantity of DL allowed for output at standard unit price Calculation of labor variances: Unfavorable (Favorable) Rate (Price) variance Efficiency (Quantity) variance Total labor variance