Having trouble understanding this set.
This in preparation for an exam in a week.
Can someone help?
NOTE:
The problem should say "The company purchased used82,500yards of fabric and used 93,700 yards of fabrics during the month."
(d) Calculate the fixed overhead spending variance for November. (Round answer to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Fixed overhead spending variance $Current Attempt in Progress Stratton, 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 $3 per yard 2.00 yards $6.00 Direct labor $14 per DLH 0.75 DLH 10.50 Variable overhead $3 .20 per DLH 0.75 DLH 2.40 Fixed overhead $3 per DLH 0.75 DLH 2.25 $21.15 Sandy Robison, operations manager, was reviewing the results for November when he became upset bythe unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased and used 82,000 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $457,375, with an actual hourly rate of $12.50 per direct labor hour. The annual budgets were based on the production of 600,000 shirts, using 450,000 direct labor hours. Though the budget for November was based on 45,000 shirts, the company actually produced 42.500 shirts during the month. Variable Overhead Budget Annual Budget Per Shirt NovemberMal Indirect material $720,000 $1.20 $52,900 Indirect labor 450,000 0.75 31,400 Equipment repair 180,000 0.30 13,700 Equipment power 90,000 0.15 6,500 Total $1,440,000 $2.40 $104,500 Fixed Overhead Budget Annual Budget November-Actual Supervisory salaries $430,000 $37,200 Insurance 140,000 11,500 Property taxes 60,000 5,000 Depreciation 245,000 21,300 Utilities 225,000 18,000 Quality inspection 250,000 22,400 Total $1,350,000 $115,400 (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Direct material price variance $ Direct material quantity variance $ (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) Direct labor rate variance $ Direct labor efficiency variance $ (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable overhead spending variance $ Variable overhead efficiency variance $
