Gerald/Brooke, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows.

Bobby Brickley, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Bobby asked CFO Lila Davis for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased and used 117,800 yards of fabric during the month. Fabric purchases during the month were made at $1.45 per yard. The direct labor payroll ran $249,865, with an actual hourly rate of $12.1 per direct labor hour. The annual budgets were based on the production of 1,002,560 shirts, using 255,000 direct labor hours. Though the budget for November was based on 86,300 shirts, the company actually produced 82,600 shirts during the month.

(a)Calculate the direct materials price and quantity variances for November.(If variance is zero, select "Not Applicable" and enter 0 for the amounts.) (Options: favorable, unfavorable, not applicable).

Direct material price variance	$	FavorableNot ApplicableUnfavorable
Direct material quantity variance	$	FavorableUnfavorableNot Applicable

(b)Calculate the direct labor rate and efficiency variances for November.(Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)(Options: favorable, unfavorable, not applicable).

Direct labor rate variance	$	UnfavorableFavorableNot Applicable
Direct labor efficiency variance	$	FavorableNot ApplicableUnfavorable

(c)Calculate the variable overhead spending and efficiency variances for November.(Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)(Options: favorable, unfavorable, not applicable).

Variable overhead spending variance	$	UnfavorableNot ApplicableFavorable
Variable overhead efficiency variance	$	UnfavourableFavourableNot Applicable

(d)Calculate the fixed overhead spending variance for November.(Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)(Options: favorable, unfavorable, not applicable).

Fixed overhead spending variance

$

FavorableNot ApplicableUnfavorable

Print by: Maria Malik GB519: Measurement and Decision Making - 1604D-02 / Copy of Lab Unit 3 Assignment *Problem 6-32 Gerald/Brooke, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Standard Price Standard Quantity Standard Cost Direct materials $1.6 per yard 1.25 yards $2 Direct labor $12 per DLH 0.25 DLH 3 Variable overhead $4 per DLH 0.25 DLH 1 Fixed overhead $6 per DLH 0.25 DLH 1.5 $7.50 Bobby Brickley, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Bobby asked CFO Lila Davis for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased and used 117,800 yards of fabric during the month. Fabric purchases during the month were made at $1.45 per yard. The direct labor payroll ran $249,865, with an actual hourly rate of $12.1 per direct labor hour. The annual budgets were based on the production of 1,002,560 shirts, using 255,000 direct labor hours. Though the budget for November was based on 86,300 shirts, the company actually produced 82,600 shirts during the month. Variable Overhead Budget Annual Budget Indirect material Per Shirt November Actual $453,900 $0.45 $37,000 Indirect labor 301,800 0.3 34,210 Equipment repair 204,800 0.2 19,400 Equipment power 54,600 0.05 13,300 $1,015,100 $1.00 $103,910 Total Fixed Overhead Budget Annual Budget Supervisory November Actual Question Attempts: 0 of 2 used Copyright 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved