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answer to number 1:
7-39 Direct manufacturing labor and direct materials variances, missing data. (CMA, heavily adapted) Oyster Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $248 per board. This includes 35 pounds of direct materials, at the budgeted price of $3 per pound, and 11 hours of direct manufacturing labor, at the budgeted rate of $13 per hour. Following are additional data for the month of July: Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 5,600 units 230,000 pounds $759,000 43,000 hours $623,500 $1,200 F Direct materials efficiency variance ASSIGNMENT MATERIAL There were no beginning inventories. 1 Compute direct manufacturing labor variances for July 2. Compute the actual pounds of direct materials used in production in July 3. Calculate the actual price per pound of direct materials purchased. 4. Calculate the direct materials price variance. Required 1. Flexible Budget (Budgeted Input Qty. Allowed for Actual Output xBudgeted Price $786,500c Actual Costs Actual Input Qty Input Qtyx Actual Price) x Budgeted Price $586,300b Incurred (Actual $594,500a Direct mfg. labor $8.,200 U $200,200 F Efficiency variance Price variance $192,000 F Flexible-budget variance a Given (or 41,000 hours x $14.50/hour) b 41,000 hours x $14.30/hour = $735,000 c5,500 units x 10 hours/unit x $14.30/hour $786,500 7-39 Direct manufacturing labor and direct materials variances, missing data. (CMA, heavily adapted) Oyster Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $248 per board. This includes 35 pounds of direct materials, at the budgeted price of $3 per pound, and 11 hours of direct manufacturing labor, at the budgeted rate of $13 per hour. Following are additional data for the month of July: Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 5,600 units 230,000 pounds $759,000 43,000 hours $623,500 $1,200 F Direct materials efficiency variance ASSIGNMENT MATERIAL There were no beginning inventories. 1 Compute direct manufacturing labor variances for July 2. Compute the actual pounds of direct materials used in production in July 3. Calculate the actual price per pound of direct materials purchased. 4. Calculate the direct materials price variance. Required 1. Flexible Budget (Budgeted Input Qty. Allowed for Actual Output xBudgeted Price $786,500c Actual Costs Actual Input Qty Input Qtyx Actual Price) x Budgeted Price $586,300b Incurred (Actual $594,500a Direct mfg. labor $8.,200 U $200,200 F Efficiency variance Price variance $192,000 F Flexible-budget variance a Given (or 41,000 hours x $14.50/hour) b 41,000 hours x $14.30/hour = $735,000 c5,500 units x 10 hours/unit x $14.30/hour $786,500
