Question
J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console follows: Direct materials, ? kilograms at $6 per
J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console follows:
Direct materials, ? kilograms at $6 per kilogram | $ | ? | per game |
Direct labor, 0.75 hours at ? per hour | ? | per game | |
Overhead, 0.75 hours at ? per hour | ? | per game | |
Total costs | $ | 42 | per game |
Assume that the following data appeared in J&Ws records at the end of the past month:
Actual production | 46,000 | units | |
Actual sales | 43,000 | units | |
Materials (114,500 kilograms) | $ | 728,000 | |
Materials price variance | 41,000 | U | |
Materials efficiency variance | 38,400 | U | |
Direct labor price variance | 13,400 | U | |
Direct labor (33,500 hours) | 556,100 | ||
Underapplied overhead (total) | 18,200 | U | |
There are no materials inventories.
Required:
a. Complete the standard cost sheet for a game console given below. Compute the direct labor efficiency variance. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
b. Assume that all production overhead is fixed and that the $18,200 underapplied is the only overhead variance that can be computed. What are the actual and applied overhead amounts?
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