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Hey help me show all the calculation thanks i will upvote (18 pts) 6. Taylor Desmond is a cost accountant and business analyst for Doorknob
Hey help me
show all the calculation
thanks i will upvote
(18 pts) 6. Taylor Desmond is a cost accountant and business analyst for Doorknob Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct cost categories: direct materials and direct marufacturing labor. Desmond feels that manufacturing overheadis most closely related to direct manufacturing labor hours. Therefore, DDC allocates manufacturing overhead to production based upon direct labor hours. At the beginning of 2021, DDC budgeted arnual production of 400,000 doorknobs and adopted the following standards for each doorknob: $ 3.00 24.00 Input Cost/Doorknob Direct materials (brass) 0.3 lb. @ $10/1b. Direct manufacturing labor 1.2 hours @ $20 hour Manufacturing overhead Variable $1.50/hr. x 1.2 hours Fixed $3.75/hr. x 1.2 hours Standard cost per doorknob 1.80 4.50 $33.30 Actual results for November 2021 were as follows: Production 35,000 doorknobs Direct materials purchased 12,000 lb. at $ 11 lb. Direct materials used 10,450 lb. Direct manufacturing labor 38,500 hours for $808,500 Variable manufacturing overhead $64.150 Fixed manufacturing overhead $152,000 Required a) For the month of November, compute the following variances, indicating whether eachis favorable (F) or unfavorable (U): 1. Direct materials price variance (based on purchases) 2. Direct materials efficiency variance 3. Direct manufacturing labor price variance 4. Direct marufacturing labor efficiency variance 5. Variable manufacturing overhead spending variance 6. Variable manufacturing overhead efficiency variance 7. Production-volume variance 8. Fixedmarufacturing overhead spending variance b) Discuss the possible explanation for the variancesStep by Step Solution
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