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help, i have no clue how to do this Company. ur S 18,30 o eral manufactu ng cost var ance s on y 1.2%of the
help, i have no clue how to do this
Company. ur S 18,30 o eral manufactu ng cost var ance s on y 1.2%of the $1,52 fonde ! Not on y did our salespeople do good job in meeting the sales bud at this year, bu our pro non people did a good ob n oo oling oosts as we said Kim Clark, president a Mart standardcost of products made during the year. Thats well within the 3% parameter set by management ror acceptable variances. It looks like everyone wil be in line for a bonus this year. The company producos and solls a singlo product. Tho stondard cost card for tho product folows: Standard Standa Price Cost Inputa Direct materials Direct labor Veriable overhead Fixed ovorhoad Toal standard cost per uni or Hours 2 teet 1.4 hours 1.4hours 1.,4 hour 845 per toon 16 per hour 250 per hour per hour 16.90 22.40 3.50 8.40 51.20 The following addiional informaton is available for the yeer just completed: manufacturod 30,000 units of product during the yoar. a. The b. A too of 64 foot o mator al wa purchasod dunng he ar at a oost of $8.55 per oot All of ths mater a was used to manufacture the 30,000 unts Produced. Thoro wore no boginnng orandng i van ones or C The company worked 43.500 direct labor-hours during the year at a direct labor cost of $15.80 par hour d. Overheed is applied to products on the basis of standard direct labor-hours. Data releting to manufacturing overhead costs folow. ycar Danom nabor ectivity lavel (direct labor-hours) Budgeted ixed overmead cost5 Actual verisbe overheed costs incurred Actual xnd ovorhood coats incurred 35.000 5 210,000 S 108,000 211,800 Required 1. Compule the materials price and quantity variances for the yeer. Computo tho labor rato and officiancy variancos for the yoar. a. The variable overhead raie and emiciency variances for the year b. The ixed overhead budget and volume veriances for the year. For all roquirements, indicato the offect of oach variance by selocting "F* for favorablo, "U for unfavorablo, and "Nono" for no offect (i.o, zoro varianco) Input all amounts as positive values 1. Materials price variande Materials quantity varanco 2. Labor rate varance Labor eficioncy variance Variable overhead rate variance Variable overhead emiciency variance Foxod ovorhead budgat variance Foed overhead volume vananceStep by Step Solution
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