Good Numbers and calculates the standard cost of a completed pair of RTW jeans as $72.00, as follows: Cost per pair of jeans $ Quantity Price $ Unit 10 /metre 20.00 Denim fabric meters Direct labour hours 20 /hour 40.00 4.00 Variable factory overhead 10 /hour 20 /hour 8.00 Fixed factory overhead Total standard cost 72.00 The fixed overhead rate is based on an estimated 600 units per month. Direct labour is nearly a fixed cost in this business. Selling and administrative costs are $4500 per month plus $2 per pair of jeans sold. The following information is for production during April: Units Number of pairs of jeans made 565 Jeans Purchase of 1200 metres of denim 13,200 metres Number of metres used 1,150 metres Direct labour costs (1200 hours) 24,500 Variable factory overhead costs 2,750 Fixed factory overhead costs 4,020 3,770 Selling and administrative costs Divine Denim's policy is to record materials price variances at the time materials are purchased. Use a spreadsheet to perform calculations. interact2.csu.edu.au > Required: Subject Outline As an accountant working for Good Numbers use a spreadsheet to: marks) ii. calculate all common direct cost variances. (3 marks) iii. calculate all common factory overhead variances. (3 marks) iv. calculate a total variance for the selling and administrative costs. (3 marks) v. prepare a production cost variance report for April. (5 marks) vi. prepare a report that sums all the variances necessary to prepare the reconciling journal entry at the end of the period. Explain how you would close the total variance; that is, identify the account or accounts that would be affected, and whether expenses in the accounts will be increased or decreased to adjust the records for the total variance. (3 marks) vii. use information in the April production cost variance report (part v. above) to identify and describe questions Helen, the owner of Devine Denim, might have about April's production costs. (5 marks) Presentation: Cut and paste your spreadsheet results and formula view into your word document. The formula view should include the column letters and the row numbers. Good Numbers and calculates the standard cost of a completed pair of RTW jeans as $72.00, as follows: Cost per pair of jeans $ Quantity Price $ Unit 10 /metre 20.00 Denim fabric meters Direct labour hours 20 /hour 40.00 4.00 Variable factory overhead 10 /hour 20 /hour 8.00 Fixed factory overhead Total standard cost 72.00 The fixed overhead rate is based on an estimated 600 units per month. Direct labour is nearly a fixed cost in this business. Selling and administrative costs are $4500 per month plus $2 per pair of jeans sold. The following information is for production during April: Units Number of pairs of jeans made 565 Jeans Purchase of 1200 metres of denim 13,200 metres Number of metres used 1,150 metres Direct labour costs (1200 hours) 24,500 Variable factory overhead costs 2,750 Fixed factory overhead costs 4,020 3,770 Selling and administrative costs Divine Denim's policy is to record materials price variances at the time materials are purchased. Use a spreadsheet to perform calculations. interact2.csu.edu.au > Required: Subject Outline As an accountant working for Good Numbers use a spreadsheet to: marks) ii. calculate all common direct cost variances. (3 marks) iii. calculate all common factory overhead variances. (3 marks) iv. calculate a total variance for the selling and administrative costs. (3 marks) v. prepare a production cost variance report for April. (5 marks) vi. prepare a report that sums all the variances necessary to prepare the reconciling journal entry at the end of the period. Explain how you would close the total variance; that is, identify the account or accounts that would be affected, and whether expenses in the accounts will be increased or decreased to adjust the records for the total variance. (3 marks) vii. use information in the April production cost variance report (part v. above) to identify and describe questions Helen, the owner of Devine Denim, might have about April's production costs. (5 marks) Presentation: Cut and paste your spreadsheet results and formula view into your word document. The formula view should include the column letters and the row numbers