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Marvel Parts, incorporated, manufactures auto accessories. One of the company's prodults is a set of seat covers that can be adjusted to fit nearly any
Marvel Parts, incorporated, manufactures auto accessories. One of the company's prodults is a set of seat covers that can be adjusted to fit nearly any small car. The company uses a standard cost system for all of its products. According to the standards that have been set for the seat covers, the factory should work hours each month to produce sets of covers The standard costs associated with this level of production are: During August, the factory worked only direct laborhours and produced sets of covers. The following actual costs were recorded during the month: During August, the factory worked only direct laborhours and produced sets of covers. The following actual conts were recorded during the month: At standard, each set of covers should require yards of material. All of the materials purchased during the month were uned in production: Required: Compute the materials price and quantity variances for August. Compute the labor rate and efficiency variances for August. Compute the variable overhead rate and efficiency variances for August. Indicate the effect of each variance by selecting for favorable, for unfavorable, and "None" for no effect ie zero variancel. Insut all amounts as bositive values.i indicate the effect ef each varlance by selecting F for fisvorable," verlance input all amounts as positive values.You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the companys costing system and do what you can to help us get better control of our manufacturing overhead costs. You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $ $ per machinehour $ Maintenance $ $ per machinehour $ Supplies $ per machinehour $ Indirect labor $ $ per machinehour $ Depreciation $ $ During March, the company worked machinehours and produced units. The company had originally planned to work machinehours during March.
Marvel Parts, incorporated, manufactures auto accessories. One of the company's prodults is a set of seat covers that can be
adjusted to fit nearly any small car. The company uses a standard cost system for all of its products. According to the standards
that have been set for the seat covers, the factory should work hours each month to produce sets of covers The
standard costs associated with this level of production are:
During August, the factory worked only direct laborhours and produced sets of covers. The following actual costs
were recorded during the month:
During August, the factory worked only direct laborhours and produced sets of covers. The following actual conts
were recorded during the month:
At standard, each set of covers should require yards of material. All of the materials purchased during the month were uned
in production:
Required:
Compute the materials price and quantity variances for August.
Compute the labor rate and efficiency variances for August.
Compute the variable overhead rate and efficiency variances for August.
Indicate the effect of each variance by selecting for favorable, for unfavorable, and "None" for no effect ie zero
variancel. Insut all amounts as bositive values.i
indicate the effect ef each varlance by selecting F for fisvorable,"
verlance input all amounts as positive values.You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the companys costing system and do what you can to help us get better control of our manufacturing overhead costs. You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:
Cost Formula Actual Cost in March
Utilities $ $ per machinehour $
Maintenance $ $ per machinehour $
Supplies $ per machinehour $
Indirect labor $ $ per machinehour $
Depreciation $ $
During March, the company worked machinehours and produced units. The company had originally planned to work machinehours during March.
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