Neste 4 minutes, 44 seconds. Question Completion Status: Moving to another question will save this response. Question 14 of 17 Question 14 22 points Free-response question : Dundem-Rifflin Company produces copy paper for printers and uses a standard cost system for product costing and control purposes. The standard cost sheet for mamfacturing a box of copy paper (a unit) shows a standard cost of 596 per unit with the following standard cost card: Direct materials (12 lbs @ $6.00) 572.00 Direct Labor (0.2 bours $40 per hour) 8.00 Variable Overhead (0.2 hours $30 per hour) 6.00 Fixed Overhead (0.2 hours @ $50 per hout) 10.00 Total standard unit cost 596.00 During the year Dunden-Rifflin produced 21.000 units and its accounting records show the following results: 1. Purchased and wed 260,000 pounds of direct materials at a total cost of S1,635,000 24,000 hours of direct labor were used in production at a cost of $171,200 3. Actualmeufacturing overhead costs for the year were $328,000. These costs were analyzed into $194,000 of fixed overhead and 5134,000 of valable overhead Normal activity for this production line is 20,000 units per year. Standard overhead rates are computed based on normal setivity based on structured direct labor hours Required Calestate ptice and wage varices for direct materials (indicate whether favorable de nomble b. Calculate rate and efficiency variances for direct labor (indicate whether favorable or unfavorable) innanithanumlatiniliariatthaihin Remaining Time: 1 hour, 27 minutes, 38 seconds. Question Completion Status: Free-response question #1: Dundem-Rifflin Company produces copy paper for printers and uses a standard cost system for product costing and control purposes. The standard cost sheet for manufacturing a box of copy paper (a unit) shows a standard cost of 896 per unit with the following standard cost card: Direct materials (12 lbs @ $6.00) $72.00 Direct Labor (0.2 hours @ 540 per hour) 8.00 Variable Overhead (0.2 hours $30 per hour) 6.00 Fixed Overhead (0.2 hours @ 550 per hour) 10.00 Total standard unit cost S96.00 During the year Dunden-Rifflin produced 21,000 units and its accounting records show the following results: 1. Purchased and used 260,000 pounds of direct materials at a total cost of S1,638,000. 2. 4,000 hours of direct labor were used in production at a cost of $171,200 3. Actual manufacturing overhead costs for the year were $328,000. These costs were analyzed into $194,000 of fixed overhead and 134,000 of variable overhead, Normal activity for this production line is 20.000 units per year. Standard overhead totes are computed based on normal activity based on standard direct labor hours. Required a. Calculate price and usage variances for direct materials (indicate whether favorable or unfavorable) b. Calculate rate and efficiency variances for direct labor (indicate whether favorable or unfavorable). Calculate spending and efficiency variances for variable overhead (indicate whether favorable or unfavorable) d. Calculate spending and volume variances for fixed overhead (indicate whether favorable or unfavorable) (Note: there is NO need to present the joumal entries) Question Completion Status: Normal activity for this production line is 20,000 units per year. Standard overhead rates are computed based on normal activity ban Required: a. Calculate price and usage variances for direct materials (indicate whether favorable or unfavorable) b. Calculate rate and efficiency variances for direct labor (indicate whether favorable or unfavorable) c. Calculate spending and efficiency variances for variable overhead (indicate whether favorable or unfavorable). d. Calculate spending and volume variances for fixed overhead (indicate whether favorable or unfavorable). (Note: there is NO need to present the journal entries) 1. 2. 3. 4. 5. 6. 7. 8. Formula Sheet MPV - (AP-SP) AQ MUV-(AQ-SQ) * SP LRV - (AR-SR) * AH LEV-(AH-SH) SR Variable Overhead Spending Variance (AVOR - SVOR)*AH Variable Overhead Efficiency Variance - (AH-SH) * SVOR Fixed Overhead Spending Variance - Actual Fixed OH - Budgeted Fixed OH Fixed Overhead Volume Variance Budgeted Fixed OH - Applied Fixed III T TTTT Paragraph Arial %DOQ 3 (12pt) ' , Mashups HTML CSS
