Question
Paynesville Corporation manufactures and seis a preservative and in food and drug manufacturing. The company carries no vertones. The master budget calls for the company
Paynesville Corporation manufactures and seis a preservative and in food and drug manufacturing. The company carries no vertones. The master budget calls for the company to manufacture and sell 12.000 iters at a builgeted price of $285 per iter the ye the standard direct cost sheet for s reservative follows Vile overhead is applied based on direct labor hours. The variable overbead rate $100 per dectabor hour The fend overhead er budget level of $30 per All non-manufacturing cods are fixed and are budgeted at $2.6 million for At the end of the y $858.000 unfavorable During the year, the company purchased 204,000 pounds of material and employed 54,400 hours of direct labor Required: a. Compute the direct material price and efficiency variances b. Compute the direct labor price and efficiency variances c. Compute the variabile overhead price and efficiency variances (For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favor "U" for unfavorable. If there is no effect, do not select either option) Direct materials Price valance Eidency variance Ovect lahor Pica variance Eciency Palance Efficiency valance
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