Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

here are answer the whole question and make sire answer isnt cut off. the numbers in the bottome two pictures are just what we need

here are answer the whole question and make sire answer isnt cut off. the numbers in the bottome two pictures are just what we need to be answered.
please help! 6-19
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Superior Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using 145,000 square feet of extruded vinyl purchased at $1.35 per square foot. Production required 430 direct labor hours that cost $13.50 per hour The direct materials standard was seven square foot of vinyl per fender, at a standard cost of $1 40 per square foot. The labor standard was 0.028 direct labor hour per fonder, at a standard cost of $12.50 per hour Read the requirement Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identity whether each variance is favorable (F) or unfavorable (U) (Abbreviations used: AC - actual cost; AD-actual quantity, FOH -fixed overhead, SC standard cost; SQ standard quantity) Formula Variance Direct materials cost variance Direct labor cost variance 4: 1 Requirement he cost variances. or unfavorable (u y whether each st: SQ = standa erials cost variand r cost variance Compute the cost and efficiency variances for direct materials and direct labor Does the pattern of variances suggest Superior Fender's managers have been making trade-offs? Explain Direct Direct Materials Labor per hr per hr Actual cost (AC) Standard cost (SC) Actual quantity (AQ) Standard quantity (SQ) per sq. ft. per sq. ft. sq. ft. sq.ft hrs hrs Variance Formula Direct materials cost variance = (AC-SC) AQ = ( $ 1.15 $ 1.20 ) * 141,000 = Direct labor cost variance = (AC-SC) * AQ =( $14.00 - $13.00 ) 420 SC) ADES est variance Direct materials efficiency (AQ - SQ) * SC = ( 141,000 - 140,000) * $ 1.20 $ 1,200 u aria Direct labor efficiency variance = (AQ - SQ) SC = ( 420 540 )* $ 13.00 $ 1.560 F Does the pattern of variances suggest Premium Fender's managers have been making trade-offs? Explain. I Cost Variance Efficiency Variance Direct materials $ 7,050 F Direct materials $ 1,200 U Direct labor $ 420 U Direct labor 1560 F $

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

Financial Intelligence

Authors: Income Mastery

1st Edition

1647773210, 978-1647773212

More Books

Students also viewed these Finance questions