Question
Gendrys Guild makes high quality swords for medieval reenactments. During the last quarter the companys profit margin was not as high as it budgeted for
Gendrys Guild makes high quality swords for medieval reenactments. During the last quarter the companys profit margin was not as high as it budgeted for the number of units sold. Since the price per sword has remained the same, Gendry suspects the issue has to do with cost overruns but has been unable to identify the exact issue. Gendry provides the above information about his companys production standards and actual performance for the quarter. Please answer the following questions for Gendry:
DM(steel) standard quantity 4 lbs. standard price or rate. .65 per lb standard cost 2.6
DL(smith). 4 hrs $ 32.00 per hr 128
VMOH. 2 hrs $4.50 per hr. 9.00
total standard cost per unit $139.60
(based of forge hours)
12,000 swords per quarter
.7 per pound
49,000 steel in production
48,500 hours work
31.95 per hour
incurred variable MOH 109,940
23,900 forge hours
company policy is to close down all variances to cost of goods sold at the end of a quarter
What is Gendrys material price variance? (Whole number, no commas, no dollar signs)
Favorable or Unfavorable?
Favorable
Unfavorable
What is Gendrys material quantity variance? (Whole number, no commas, no dollar signs)
Favorable or Unfavorable?
Favorable
Unfavorable
What is Gendrys labor rate variance? (Whole number, no commas, no dollar signs)
Favorable or Unfavorable?
Favorable
Unfavorable
What is Gendrys labor efficiency variance? (Whole number, no commas, no dollar signs)
Favorable or unfavorable
Favorable
Unfavorable
What is Gendrys OH rate variance? (Whole number, no commas, no dollar signs)
Favorable or Unfavorable?
Favorable
Unfavorable
What is Gendrys OH efficiency variance? (Whole number, no commas, no dollar signs)
Favorable or Unfavorable?
Favorable
Unfavorable
What is Gendrys total net variance? (Whole number, no commas, no dollar signs)
Favorable or Unfavorable?
Favorable
Unfavorable
What is Gendrys worst unfavorable variance?
Material Price Variance
Material Quantity Variance
Labor Rate Variance
Labor Efficiency Variance
OH Rate Variance
OH Efficiency Variance
What is one probable cause for this variance?
What is Gendrys 2nd worst unfavorable variance?
Material Price Variance
Material Quantity Variance
Labor Rate Variance
Labor Efficiency Variance
OH Rate Variance
OH Efficiency Variance
What is one probable cause for this variance?
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Independent Review For Banks The Complete BSA AML Audit Workbook
Authors: Howard Steiner, Stephen L. Marini
1st Edition
0615237908, 978-0615237909
