Hello,

I need help with homework listed below (cost accounting/accounting for managers). Thank you in advance

The following information is provided to assist you in evaluating the performance of the production operations of SolarGlass Company:

Master Budget:

Units Produced & Sold:

20,000

Selling Price:

$ 38 / unit

Standard Costs per Unit:

Direct Materials

$ 1.65 * 5 pounds/unit

Direct Labor $ 14/hour* hour/unit

Variable Manufacturing Overhead

(applied based on DL hours) $ 11.90 * hour

Total Standard Costs:

Direct Materials

$ 165,000

Direct Labor

140,000

Total Manufacturing Overhead

199,000

Actual Results:

Units Produced & Sold:

20,000

Selling Price:

$ 35 / unit

Total Actual Costs:

Direct Materials

$ 188,700 (102,000 pounds)

Direct Labor

$ 140,000 (10,700 hours)

Total Manufacturing Overhead

$ 204,000 (61% is variable)

1.Calculate a variance analysis for each variable cost (hint: actual quantities of direct materials purchased equal actual quantities used into production). Interpret the variances.

2.Calculate a fixed overhead variance analysis (hint: fixed overhead are applied based on units produced). Interpret the variances.

Complete the table below after solving questions 1 and 2

DM Price Variance Quantity Variance

AQ *(AP - SP) SP * (AQ - SQ)

DL Rate Variance Efficiency Variance

AQ *(AP - SP) SP * (AQ - SQ)

VOH Spending Variance Efficiency Variance

AQ *(AP - SP) SP * (AQ - SQ)

FOH Spending Variance Volume Variance

Actual FOH - Budgeted FOH Budgeted FOH - Applied FOH