partial credit,P8-44 (similar to)

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The

BilodeauBilodeau

Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of

2017,

BilodeauBilodeau

adopted the following standards for its manufacturing costs:

Input

Cost per Output Unit

Direct materials

2 lb. at $4 per lb.

$8.00

Direct manufacturing labor

5 hrs. at $15 per hr.

75.00

Manufacturing overhead:

Variable

$8 per DLH

40.00

Fixed

$10 per DLH

50.00

Standard manufacturing cost per output unit

$173.00

The denominator level for total manufacturing overhead per month in

2017

is

44,000

direct manufacturing labor-hours.

BilodeauBilodeau's

budget for January

2017

was based on this denominator level. The records for January indicated the following:

Direct materials purchased	18,300 lb. at $3.90 per lb.
Direct materials used	15,800 lb.
Direct manufacturing labor	38,000 hrs. at $14.80 per hr.
Total actual manufacturing overhead (variable and fixed)	$750,000
Actual production	7,800 output units

1.	Prepare a schedule of total standard manufacturing costs for the 7 comma 8007,800 output units in January 20172017.
2.	For the month of January 20172017, compute the following variances, indicating whether each is favorable (F) or unfavorable (U):
	a.	Direct materials price variance, based on purchases
	b.	Direct materials efficiency variance
	c.	Direct manufacturing labor price variance
	d.	Direct manufacturing labor efficiency variance
	e.	Total manufacturing overhead spending variance
	f.	Variable manufacturing overhead efficiency variance
	g.	Production-volume variance