Gowell Designer manufactures and sells suits. For May 2019 Gowell had the following standards

for its suits:

Standard direct costs per suit

Direct materials5 yards of fabric at $9 per yard

Direct manufacturing labor3 hours at $25 per hour

The company budgeted to purchase 25,000 yards of materials, but actually purchased and used 23,850 yards at $9.30 per yard.

The company expects to operate at a 15,000-hour level of activity this year. Thus, the company chose 15,000 direct labor-hours as the denominator level of activity (Cost allocation base).

The company's theoretical capacity is 6,000 suits. All suits are the same size. The company planned to produce and sell 5,000 suits at $300 each. However, the company actually produced 5,200 suits that it sold for $1,508,000, and worked 14,500 direct labor-hours at $25.30 per hour.

Other information are as follows:

BudgetedActual.

Variable manufacturing overhead cost...............$105,000$107,457

Fixed manufacturing overhead costs..................150,000150,500

Fixed selling & admin. costs...........................200,000 199,950

Variable selling costs..... ................................$5 per suit $4.98 per suit

Required:

1.Compute the standard overhead rate for variable and fixed manufacturing overhead costs.

2.Prepare Gowell Designer's standard manufacturing cost sheet.

3. Prepare Gowell Designer's static budget performance report for May.

4. Prepare Gowell Designer's performance report for May with a flexible budget and a static budget.

5. Compute the following variances, indicating whether each is favorable (F) or unfavorable (U):

1. Direct materials price variance
2. Direct materials efficiency variance
3. Prepare journal entries for direct materials
4. Direct manufacturing labor rate variance
5. Direct manufacturing labor efficiency variance
6. Prepare journal entries for direct manufacturing labor
7. Variable manufacturing overhead spending variance
8. Variable manufacturing overhead efficiency variance
9. Prepare journal entries for variable manufacturing overhead
10. Fixed manufacturing overhead spending variance
11. Production-volume variance
12. Prepare journal entries for fixed manufacturing overhead