Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

p23-33B M ancini manufactures embroidered jackets. The company prepares ible b flex- ts and uses a standard cost system to control manufacturing costs. The standard

image text in transcribed

p23-33B M ancini manufactures embroidered jackets. The company prepares ible b flex- ts and uses a standard cost system to control manufacturing costs. The standard unit cost of a iacket is based on static budget volume of 14,000 jackets per month: Direct materials (3.0 sq. ft @ $4.00 per sq. ft) Direct labor (2 hours @ $9.40 per houry Manufacturing overhead: $12.00 18.80 Variable (2 hours@ $0.65 per hour) $1.30 4.40 Fixed (2 hours@ $2.20 per hour Total cost per jacket 5.70 $36.50 Actual cost and production information: a. Actual production was 13,600 jackets. b. Actual direct materials usage was 2.8 square feet per jacket, at an actual price of $4.10 per square foot. c. Actual direct labor usage of 25,000 hours at a total cost of $237,500. d. Total actual overhead cost was $79,000 Requirements 1. Compute the price and efficiency variances for direct materials and direct labor. (pp. 1168, 1170) 2. Journalize the usage of direct materials and the assignment of direct labor, including the related variances. (pp. 1175, 1177) 3. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. (Hint: Remember that the fixed overhead in the flexible budget equals the fixed overhead in the static budget.) (pp. 1173, 1174) November production. How did this decision affect the cost vari- ances? Overall, was the decision wise? (p. 1171) 4. Mancini's management intentionally purchased superior materials for

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_2

Step: 3

blur-text-image_3

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

Mastering Accounting Skills

Authors: Margaret Nicholson

3rd Edition

1403992703, 978-1403992703

More Books

Students also viewed these Accounting questions

Question

Data on cash, receivables and payables. LO.1

Answered: 1 week ago