Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pickul Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are

image text in transcribed
image text in transcribed
Pickul Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: Click the icon to view the standards.) cost and operating data from the most recent month are as follows: (click the icon to view the actual results.) All manufacturing overhead is allocated on the basis of direct labor hours. Requirement 1. Calculate the standard cost of one awning. Standard cost Direct materials Direct labor Variable MOH Fixed MOH Total standard cost Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the neare Standard cost per unit whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM Direct materials First determine the formula for the price variance, then compute the price variance for direct materials. DM price variance x ( x ( Determine the formula for the quantity variance, then compute the quantity variance for direct materials x ( DM quantity variance x ( Requirement 2b. Calculate the direct labor variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL Direct labor.) First determine the formula for the rate variance, then compute the rate variance for direct labor ) = DL rate variance x ( x ( First determine the formula for the efficiency variance, then compute the efficlency variance for direct labor x ( x ( ) DL efficiency variance Choose from any list or enter any number in the input fields and then continue to the next

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions