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I need help with this! Please help me! Please complete all the question within the PDF BA213 Inc Standard Costs: Direct Material Direct Labor Variable
I need help with this!
Please help me! Please complete all the question within the PDF
BA213 Inc Standard Costs: Direct Material Direct Labor Variable Overhead Total standard variable cost/unit Cost Formulas: Advertising Sales salaries & commissions Shipping expenses Standard Quantity 5 pounds 2 hours 2 hours Fixed Cost Per Month $200,000 $100,000 Standard Price $8 per pound $14 per hour $5 per hour Total Amount $40.0 $28.0 $10.0 $78 Variabl Cost Per Unit Sold $12 $3 Information for March: Planning budget for March: Actual March: 25,000 units produced & sold 30,000 units produced & sold a) Purchased 160,000 pounds of material -- all used in production $7.50 per pound b) Direct-labor hours 55,000 $15.00 per hour c) Total VOH was $280,500 d) Advertising Sales Salaries & Commissions Shipping **USE THE ATTACHED VARIANCE GRIDS THE ANSWER THE FOLLOWING QUESTIONS*** How much raw materials costs would be included in the flexible budget for March? What are the raw materials price & quantity variances for March? What are the journal entries associated with these variances? What would be the raw materials price & quantity variances in March with the following changed: Raw materials purchased Purchase price Raw materials used 170,000 pounds $7.50 per pound 160,000 pounds What direct labor cost would be included in the flexible budget for March: What is the direct labor rate & efficiency variances in March? What are the journal entries associated with these variances? What variable manufacturing overhead cost would be included in the flexible budget for March? What are the variable overhead rate & efficiency variances for March? What amounts of advertising, sales salaries & commissions, and shipping would be included in the flexible budget for March? What are the spending variances related to advertising, sales salaries & commissions, and shipping for March? $210,000 $455,000 $115,000 This is an explanatory grid for reference purposes General Variance Grid Direct Materials -- Direct Labor -- Variable Overhead (VOH) SQ SP AQ AP Standard quantity that should be used for each of the units acutally produced Standard price or rate that we planned to pay for the materials/labor Actual quantity used to produce the actual units Actual price or rate paid for the materials/labor purchased/used SQxUnits Produced X Change in Quantity Change in Efficiency AQ X AQ X Change in Price SP SP (1) (2) Quantity Variance Efficiency Variance (1)-(2) Change in Rate (3) Price Variance Rate Variance (2)-(3) Spending Variance (1)-(3) Journal Entries: Account AP Debit This grid is for you to use as a reference tool as you work through the case. Credit General Variance Grid Direct Materials The quantity purchased in the same as the quantity used. SQ SP AQ AP Standard quantity that should be used for each of the units acutally produced Standard price or rate that we planned to pay for the material/labor Actual quantity used to produce the actual units Actual price or rate paid for the materials/labor purchased/used Change in Quantity SQxUnits Produced X AQ X AQ X SP SP AP (1) (2) (3) Change in Price Quantity Variance (1)-(2) Price Variance (2)-(3) Spending Variance (1)-(3) Journal Entries: Account Debit Credit DM Used/Purchased Split Variance Grid Direct Material purchased in large quantities then used later is smaller quantities SQ SP AQ AP Standard quantity that should be used for each of the units acutally produced Standard price or rate that we planned to pay for the materials Actual quantity used to produce the actual units Actual price or rate paid for the materials purchased/used Quantity Used in Production -- smaller quantities Change in Quantity SQxUnits Produced X AQ Used X SP SP (1) (2) Quantity Variance (1)-(2) AQ Purchased X AQ Purchased X Change in Price SP AP (3) (4) Price Variance (3)-(4) Quantity Purchased -- large quantities Journal Entries: Account Debit Credit General Variance Grid Direct Labor SQ SP AQ AP Standard quantity that should be used for each of the units acutally produced Standard price or rate that we planned to pay for the material or labor Actual quantity used to produce the actual units Actual price or rate paid for the materials/labor purchased/used Change in Efficiency SQxUnits Produced X AQ X AQ X SP SP AP (1) (2) (3) Change in Rate Efficiency Variance (1)-(2) Rate Variance (2)-(3) Spending Variance (1)-(3) Journal Entries: Account Debit Credit General Variance Grid Variable Overhead (VOH) SQ SP AQ AP Standard quantity that should be used for each of the units acutally produced Standard price or rate that we planned to pay for the material or labor Actual quantity used to produce the actual units Actual price or rate paid for the materials purchased/used Change in Efficiency SQxUnits Produced X AQ X AQ X SP SP AP (1) (2) (3) Change in Rate Efficiency Variance (1)-(2) Rate Variance (2)-(3) Spending Variance (1)-(3)Step by Step Solution
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