Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no Inventories. The master budget calls for the company to manufacture and sell 118,000 liters at a budgeted price of $210 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds $13) (0.5 hours $42) $26 21 vipped Book Variable overhead is applied based on direct lobor hours. The variable overhead rate is $110 per direct-labor hour. The fixed overhead rate (ot the master budget level of activity) is $55 per unit. All non manufacturing costs are fixed and are budgeted at $2.1 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $648,000 unfavorable. The following is the actual income statement in thousands of dollars) for the year. $23,798 o Reference sales revenue 1. variable costs Direot materiais Direct labor Variable overhead Total variable conta contribution margin La fixed cost Yixed manufacturing overhead Non-manufacturing costs total fixed cost 146 1 at ing Prot + 2.578 2,360 5,830 $10.768 $13,030 1.140 3,320 3.2.460 $10.590 During the year, the company purchased 194,000 pounds of material and employed 49,400 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 variable overhead price and efficiency variances LOILLEDUL 1 Less Fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit 1,140 1,320 $ 2,460 $10,570 oped During the year, the company purchased 194,000 pounds of material and employed 49,400 hours of direct labor. BOOK Required: a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances. (For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Print References a Direct materials Price variance Efficiency variance Direct labor Price variance Efficiency variance Variable overhead Price variance Eficiency variance C Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no Inventories. The master budget calls for the company to manufacture and sell 118,000 liters at a budgeted price of $210 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds $13) (0.5 hours $42) $26 21 vipped Book Variable overhead is applied based on direct lobor hours. The variable overhead rate is $110 per direct-labor hour. The fixed overhead rate (ot the master budget level of activity) is $55 per unit. All non manufacturing costs are fixed and are budgeted at $2.1 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $648,000 unfavorable. The following is the actual income statement in thousands of dollars) for the year. $23,798 o Reference sales revenue 1. variable costs Direot materiais Direct labor Variable overhead Total variable conta contribution margin La fixed cost Yixed manufacturing overhead Non-manufacturing costs total fixed cost 146 1 at ing Prot + 2.578 2,360 5,830 $10.768 $13,030 1.140 3,320 3.2.460 $10.590 During the year, the company purchased 194,000 pounds of material and employed 49,400 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 variable overhead price and efficiency variances LOILLEDUL 1 Less Fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit 1,140 1,320 $ 2,460 $10,570 oped During the year, the company purchased 194,000 pounds of material and employed 49,400 hours of direct labor. BOOK Required: a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances. (For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Print References a Direct materials Price variance Efficiency variance Direct labor Price variance Efficiency variance Variable overhead Price variance Eficiency variance C
