Homework: Chapter 8 - Homework B Save 1 of 2 (0 complete) HW Score: 0%, 0 of 2 p Score: 0 of 1 pt E8-34 (book/static) Question Help Eric Williams is a cost accountant and business analyst for Diamond Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Williams feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used (Click the icon to view the standards.) (Click the icon to view the actual results for April.) Read the requirements Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U) Before computing the variances complete the tables below. Begin by completing the table for direct materials. Actual Input Qty. Actual Costs Incurred Budgeted Price Purchases Usage Flexible Budget Direct materials Enter any number in the edit fields and then click Check Answer. 14 Pemaining Clear All Check Answer HW 1 of 2 (0 complete) and business analyst for Diamond Design Company (DDC), which manufactures expensive brass doorknot erials and direct manufacturing labor. Williams feels that manufacturing overhead is most closely related to m erhead to production based upon pounds of materials used. anda i Data Table of Ap com osts At the beginning of 2017, DDC budgeted annual production of 420,000 doorknobs and adopted the following standards for each doorknob: Input Cost/Doorknob Direct materials (brass) 0.3 lb. @ $10/1b. $ 3.00 Direct manufacturing labor 1.2 hours @ $17/hour 20.40 Manufacturing overhead: Variable $5/b x 0.3 lb. Fixed $15/1b. x 0.3 lb. 4.50 Standard cost per doorknob 29.40 ed 1.50 Print Done it fields and then click Check Answer. Clear All Check ter 8 - Homework B 1 of 2 (0 complete) usiness analyst for Diamond Design Company (DDC), which manufactures expensive bras nd direct manufacturing labor. Williams feels that manufacturing overhead is most closely r to production based upon pounds of materials used. (Click the icon to view the actual results for April.) 0 Data Table Actual results for April 2017 were as follows: Production 29,000 doorknobs Direct materials purchased 12,400 lb. at $11/1b. Direct materials used 8,500 lbs. Direct manufacturing labor 29,200 hours for $671,600 Variable manufacturing overhead $65,100 Fixed manufacturing overhead $158,000 Print Done and then click Check Answer. Clear All business analyst for Diamond Design Company (UDL), WHICH Mallul IIUS UAHIJIVU U and direct manufacturing labor. Williams feels that manufacturing overhead is most closel d to production based upon pounds of materials used. - Click the icon to view the actual result for Anril Requirements For the month of April, compute the following variances, indicating whether each is favorable (F) or unfavorable (U). a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Variable manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance h. Fixed manufacturing overhead spending variance 2. Can Williams use any of the variances to help explain any of the other variances? Give examples. Print Done
