Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Moving to another question will save this response. Question 8 of 10 Question & 20 points Save and Lido Company's standard and actual costs for

image text in transcribed
image text in transcribed
image text in transcribed
Moving to another question will save this response. Question 8 of 10 Question & 20 points Save and Lido Company's standard and actual costs for the most recent period, are given below Lido uses the following manufacturing standards Per Unit Direct Material: 2metres $1.56 per metre Direct Labour : 1.25 Hours $16.00per hour MOH: Variable: 1.25Hours $3.45 per DLH - Fixed: 1.25 Hrs $10.00 based on capacity to produce 1,000 units During the most recent period Lido provided the following details: Produced 950 Units Raw Materiat -2.500 metres of material were purchased at $1.45 per metre, and 2.000 metres were used Direct Labour 1,420 hours of labour were assigned to produce 950 units. Direct labour actual hourly rate was $16.65 Actual Variable Manufacturing Overhead - MOH 33.70 per labour hour Direct Labour Hours-DLH as the COST DRIVER for overhead application Actual Fixed Overhead amounted to $11,500 for the period Attached to this exam, is an Excel Spreadsheet with imbedded formulas designed to calculate the variances for: Direct Material. DM; Direct Labour-DL: Variable Manu facturing Overhead - MOHVC; Fixed Manufacturing Overhead - MOH FC All the Variances have been determined. Please do not attempt to submit the spreadsheet QUESTIONS Part I: Provide journal Entries for 1. The purchase and use of raw materials 2. Direct Labour Remaining Time: 42 minutes, 10 seconds. Question Completion Status: Part I: Complete the following variance report and perform the analysis that follows Variance Analysis and Report Variances F Direct Materials: -Price - Quantity - Rate Direct Labour - Efficiency Overhead - Variable: - Spending - Efficiency Fixed: - Budget - Volume Totals: QUESTIONS WHO? WHAT? WHY? Analysis (briefly): Identify any exceptions from the above and explain why you consider them important. Comment on the exceptions you have identified: Which variances will you seek more information on? Why? Who are the managers you will address in order to get answers?: What information will you be looking for? Why

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Framework For Internal Auditings Entity Wide Opinion On Internal Control

Authors: Wanda A. Wallace, Thomas White

1st Edition

0894135317, 978-0894135316

More Books

Students also viewed these Accounting questions