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Please Answer ASAP. All parts of the question must be completed and in the following format as depicted: Problem 10A-10 Comprehensive Standard Cost Variances [LO10-1,
Please Answer ASAP. All parts of the question must be completed and in the following format as depicted:
Problem 10A-10 Comprehensive Standard Cost Variances [LO10-1, LO10-2, LO10-3, LO10-4] "Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $17,350 overall manufacturing cost variance is only 2% of the $1,536,000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year." The company produces and sells a single product. The standard cost card for the product follows: Standard Cost Card per Unit Direct materials, 4.50 feet at $2.60 per foot 11.70 Direct labor, 2.9 direct labor-hours at $9 per direct labor-hour 26.10 Variable overhead, 2.9 direct labor-hours at $2.20 per direct labor-hour 6.38 Fixed overhead, 2.9 direct labor-hours at $4.50 per direct labor-hour 13.05 57.23 Standard cost per unit The following additional information is available for the year just completed: a. The company manufactured 25,000 units of product during the year. b. A total of 110,000 feet of material was purchased during the year at a cost of $2.75 per foot. All of this material was used to manufacture the 25,000 units. There were no beginning or ending inventories for the year. c. The company worked 75,000 direct labor-hours during the year at a direct labor cost of $8.70 per hour d. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow: 70,000 Denominator activity level (direct labor-hours) Budgeted fixed overhead costs 15,000 180,000 Actual variable overhead costs incurred 313,100 Actual fixed overhead costs incurredStep by Step Solution
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