Parson Awning manufactures during and uses a standard cont system. The company locates overhead based on the number Achaal cost and operating data from the most recent month are as follows: of direct labor hours. The following are the company's cost and standards Click the icon to view the actual results.) Click the icon to view the standards.) All manufacturing overhead is allocated on the basis of direct labor hours. Read the requirements Requirement 1. Calculate the standard cost of one awning Sandand cost per unit Der V MOH MOH Requirement 21. Come te drect material variances. Creer the worces as postrembers. Breer currency now. She reare cent and your answers to the nearest whole dolu. Label se variance as favorable a runt Used DM Dreams First determine the formato e price variance, then compute the price variance for det mes > Oceanance Donden Standard Price and Volume Actual Results - X Standards: Direct materials 25.0 yards per awning at $11.00 per yard Direct labor 3.0 hours per awning at $18.00 per hour Variable MOH standard rate $7.00 per direct labor hour Predetermined fixed MOH standard rate $11.00 per direct labor hour Total budgeted fixed MOH cost $64,500 Purchased 53,200 yards at a total cost of $558,600 Used 49,100 yards in producing 2,000 awnings Actual direct labor cost of $107,640 for a total of 5,850 hours Actual variable MOH $42.705 Actual fixed MOH $70,000 fice as favor Print Print Done Done we requirements Determine the formula for the quantity variance, then compute the quantity variance for direct materials. x DM quantity variance X ) = Requirement 2b. Calculate the direct labor variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the ne used: DL = Direct labor) First determine the formula for the rate variance, then compute the rate variance for direct labor ) = DL rate variance x XC First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor x 1xcl DL efficiency variance Read the requirements Requirement 2c. Calculate the variable manufacturing overhead variances (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers (U).) First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead (Round interim calculations to the nearest cent.) Variable overhead rate variance x Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for variable manufact Variable overhead efficiency variance Requirement 2d. Calculate the fixed manufacturing overhead ariannes For the Requirement 2d. Calculate the fixed manufacturing overhead variances (Enter the variance as a positive number Label the variance as favorable (F) or unfavorable (U).) Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the budget variance for fixed manufacturing overhead Foed MOH budget variance Now compute the fried manufacturing overhead volume variance First determine the formula for the volume variance, then compute the volume variance for fixed manufacturing overhead Fixed MOH volume variance Requirements. Explain what each of the varices you calated means and give least one possible explanation for each of those variances Direct materials: Variance Meaning Possible explanation DM price OM and then come to the next Question Read the regu Direct Labor: Possible explanation Variance Meaning DL rate DM efficiency Variable manufacturing overhead: Variance Meaning Possible explanation VOH rate VOH efficiency ariable manufacturing overhead: Meaning Powie explanation Variante VOH VOH ceny Feed manufacturing overhead Meaning Platon FOR FO Are y othens to be wen Choose from any rere any number in the routes and then continue to the most Actual hours Actual price Actual quantity purchased Actual quantity used Standard hours allowed Standard price Standard quantity allowed N Actual fixed overhead 2V Budgeted fixed overhead Standard hours allowed Standard quantity allowed Standard rate Std. fixed overhead cost allocated to production ant 2 Explain what each of the variances you 1 1 . Variance Meaning Possible explanation DL rate DM efficiency Variable manufa it took less labor hours than the standard to produce 2,000 awnings it took more labor hours than the standard to produce 2,000 awnings the actual labor rate paid for was less than the standard the actual labor rate paid for was more than the standard Variance Possible explanation VOH rate Variance Meaning Possible explanation DL rate DM efficiency Variable manufacturing overhead: Variance Meaning decreased efficiency of employees hired less qualified employees hired more qualified employees improved efficiency of amninunn VOH rate Varance Meaning Possible explanation VOH rate VOH efficiency it took less labor hours than the standard to produce 2,000 awnings Fixed manufactur it took more labor hours than the standard to produce 2.000 awnings Variance Me less was spent on VOH than the standard FOH budget more was spent on VOH than the standard Possible explanation cost saving in any VOH costs decreased efficiency of employees hired less qualified employees hired more qualified employees increases in any VOH costs improved efficiency of employees Possible explanation Fixed manufacturing overhead: Variance Meaning FOH budget Possible explanation FOH volume less was spent on FOH than the standard more was spent on FOH than the standard the volume was higher than anticipated Are any of the the volume was lower than anticipated Meaning Variance FOH budget Possible explanation FOH volume cost saving in any FOH costs decreased efficiency of employees hired less qualified employees Are any of the variances likely to be interrelated? hired more qualified employees increases in any FOH costs The variance is likely to be related improved efficiency of employees less units were produced with the same amount of foed resources Choose from any list or enter any number in the input fields more units were produced with the same amount of foxed resources favorable DL efficiency OH favorable DM quantity unfavorable DL efficiency e unfavorable DM quantity e favorable DL rate favorable DM price unfavorable DL rate unfavorable DM price hired less qualified employees at a lower rate hired more qualified employees at a higher rate purchased higher quality materials at a higher price purchased lower quality materials at a lower price an increase in materials needed a reduction in materials needed decreased labor efficiency improved labor efficiency
