Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Grand Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024 , using 141,000 square feet of extruded vinyl purchased at $1.40

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Grand Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024 , using 141,000 square feet of extruded vinyl purchased at $1.40 per square foot. Production required 430 direct labor hours that cost $16.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.45 per square foot. The labor standard was 0.024 direct labor hour per fender, at a standard cost of $15.50 per hour. Read the requirement. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Grand Fender's managers have been making trade-offs? Explain. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC= actual cost; AQ= actual quantity; FOH= fixed overhead; SC= standard cost; SQ= standard quantity.) Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC= actual cost; AQ= actual quantity; FOH= fixed overhead; (Abbreviations used: AAC= actual cost; AQ= actual quantity; FOH= fixed overhead; SC= standard cost; SQ= standard quantity.) Does the pattern of variances suggest Grand Fender's managers have been making trade-offs? Explain. The direct materials cost variance combined with the direct materials efficiency variance suggests that managers may have used making trade-offs? Explain. The direct materials cost variance combined with the direct materials efficiency variance suggests that managers may have used direct materials. The net effect on the total direct materials variance is The direct labor cost variance combined with the direct labor efficiency variance suggests that managers may have used workers who performed more efficiently. The net effect on the total direct labor variance is diact muariah cos variance coalined with the brectmatorias The not efoct of ere mal dest mearlate seriance is diser manals eas velante cambened with the desed materas Tea nat iffect in the veal disat matertan vatiance is diect istir eoel varishe cootined wht ter

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles Techniques And Practices

Authors: Mustaq Ahmad, Mohd Ashraf Ali

1st Edition

8184841949, 978-8184841947

More Books

Students also viewed these Accounting questions

Question

6. Is the given data nominal, ordinal, interval, or ratio? Explain.

Answered: 1 week ago

Question

Does it exceed two pages in length?

Answered: 1 week ago

Question

Does it avoid typos and grammatical errors?

Answered: 1 week ago