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Marigold, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as

Marigold, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows.

Standard Price Standard Quantity Standard Cost

Direct materials $3 per yard 2.00 yards $6.00

Direct labor $14 per DLH 0.75 DHL $10.50

Variable Overhead $3.20 per DLH 0.75 DHL $2.40

Fixed overhead $3 per DLH 0.75 DHL 2.25

$21.15

Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November.

The company purchased 82,000 yards of fabric and used 93,600 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $459,375, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 600,000 shirts, using 450,000 direct labor hours. Though the budget for November was based on 45,500 shirts, the company actually produced 42,000 shirts during the month.

Variable Overhead Budget

Annual Budget Per Shirt November-Actual

Indirect Material $449,000 $1.20 49,300

Indirect labor $295,5000 0.75 30,900

Equipment repair 195,000 0.30 20,800

Equipment power 51,000 0.15 7,400

Total $990,000 $240 $108,400

Fixed Overhead Budget

Annual Budget November-Budget

Supervisory salaries $256,000 21,900

Insurance 335,000 27,000

Property taxes 75,000 6,600

Depreciation 320,000 25,600

Utilities 207,000 20.900

Quality Inspection 278,000 25,300

Total $1,491,000 $127,300

(a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct material price variance

Direct material quantity variance

Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct labor rate variance

Direct labor efficiency variance

Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Variable overhead spending variance

Variable overhead efficiency variance

Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Fixed overhead spending variance

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