Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Headstart manufactures headphone cases. During September 2018, the company produced and sold 100.000 cases and recorded the following cost dat (Click the icon to view

image text in transcribed
Headstart manufactures headphone cases. During September 2018, the company produced and sold 100.000 cases and recorded the following cost dat (Click the icon to view the cost data) Read the revirements Data Table Requirement 1. Compute the cost and efficiency inces for direct materials and direct labor Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identity w actual quantity: FOHfed overhead, SC standard cost, SQ standard quantity) Standard Cost Information Quantity cost Formula Variance Direct materials cost variance - (AC-SCAD $10,850 U Direct labor cost variance (AC-SC) XAQ - $ 249 U Next compute the efficiency variances Select the required formulas, compute the efficiency variances for direct materials and direct labor, cosAQ - Guantity. FOH-food overhead: SC standard cost: S t andard quantity) Direct Materials Direct Labor Variable Manufacturing Overhead 2 parts $ 0.02 hours 0.02 hours 0.15 per part 9.00 per hour 10.00 per hour Formula (AQ-SQ)X SC (AQ-50) C Fixed Manufacturing Overhead (533,320 for static budget volume of 8,000 units and 1,000 hours, or $17 per hour) Direct materiais efficiency variance Direct labor efficiency variance . $ $ 450 4.500 F F Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost an $ Now compute the variable overhead cost and efficiency varies Select the required formulas, compute the variable overhead cost and od: AC - acusco AD- ul quantity: FOH - foed overhead: SC standard cost: S t andard quantity, VOH variable overhead Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fred Manufacturing Overhead 213,000 parts@ (1.660 hours @ 0.20 per part) 9.15 per hour) $42.000 15,180 VOH covariance VOH efficiency variance Print Done

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

Step: 3

blur-text-image

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

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

What is meant by a foreign trade zone?

Answered: 1 week ago

Question

What is the benefit of an activity analysis?

Answered: 1 week ago