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Smart Hearing manufactures headphone cases. During September 2024, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead; SC = standard cost, SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity, FOH = fixed overhead; SC = standard cost, SQ = standa quantity.) Formula Variance Direct materials efficiency variance Direct labor efficiency variance Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost, SQ = standard quantity: VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost: AQ = actual quantity, FOH = fixed overhead; SC = standard cost. SQ= standard quantity.) Formula Variance FOH cost variance FOH volume variance Requirement 3. Smart Hearing's management used better quality materials during September. Discuss the trade-off between the two direct material variances. Smart Hearing's management knew that using higher quality materials would result in a(n) . They hoped these materials would result in more efficient usage than "standard" materials. The result was an overall Choose from any list or enter any number in the input fields and then continue to the next question.Formula Variance Direct materials efficiency variance Direct labor efficiency variance Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed ove Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhea cost; SQ = standard quantity: VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead co: (AC - SC) x AQ quired formulas, compute the fixed overhead cost and standard quantity.) AC - SC) x SQ (AQ - SQ) * AC (AQ - SQ) * SC Variance FOH cost variance Actual FOH - Allocated FOH FOH volume variance Actual FOH - Budgeted FOH Budgeted FOH - Allocated FOH Requirement 3. Smart Hearing's ma s during September. Discuss the trade-off between the t Smart Hearing's management knew that using higher quality materials would result in a(n) Choose from any list or enter any number in the input fields and then continue to the next question.Compute the cost and efficiency variances abor. s for direct materials and direct labor. 2 . For manufacturing overhead, compute the compute the cost variances for direct materials and direct labor, and identify whether each v efficiency variances and the fixed overhea Smart Hearing's management used better nula scuss the trade-off between i Data Table X Print Don formulas, compute Standard Cost Information Quantity Cost Formula Direct Materials 2 parts $0.17 per part Direct Labor 0.02 hours 14.00 per hour Variable Manufacturing Overhead 0.02 hours 10 per hour variable overhead Fixed Manufacturing Overhead ($31,360 for static budget volume of 98,000 units and 1,960 hours, or $16 per hour) riances Select the each variance is Actual Cost Information Direct Materials (211,000 parts @ $0.22 per part) $ 46,420 Direct Labor 1,660 hours @ $14 10 per hour) 23,406 Variable Manufacturing Overhead 14,000 Fixed Manufacturing Overhead 25,000 s. Select the requi ance is favorable (F) or unfavora Print Done quality materials during September. Discuss the trade-off between the two direct material variances lity materials would result in a(n) They hoped these materials would result in more efficient usage than "st favorable direct material cost variance favorable direct material efficiency variance unfavorable direct material cost variance fields and then continue to the unfavorable direct material efficiency variance