Question
Please help solve the ones with question marks Flexible Budget, Standard Cost Variances, T-Accounts Bellard Company manufactures external hard drives. At the beginning of the
Please help solve the ones with question marks
Flexible Budget, Standard Cost Variances, T-Accounts
Bellard Company manufactures external hard drives. At the beginning of the period, the following plans for production and costs were revealed:
Units to be produced and sold | 25,000 |
Standard cost per unit: | |
Direct materials | $ 10 |
Direct labor | 8 |
Variable overhead | 4 |
Fixed overhead | 3 |
Total unit cost | $ 25 |
During the year, 24,800 units were produced and sold. The following actual costs were incurred:
Direct materials | $263,872 | |
Direct labor | 204,352 | |
Variable overhead | 107,340 | |
Fixed overhead | 73,904 |
There were no beginning or ending inventories of direct materials. The direct materials price variance was $9,572 unfavorable. In producing the 24,800 units, a total of 12,772 hours were worked, 3 percent more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labor hours.
Required:
Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box.
1. Prepare a performance report comparing expected costs to actual costs.
Dellard Company Performance Report | ||||
---|---|---|---|---|
Cost Items | Actual Costs | Budgeted Costs | Variance | |
Direct materials | 263,872 | 248,000 | 15872 | |
Direct labor | 204352 | 198400 | 5952 | |
Variable overhead | 107340 | 99200 | 8140 | |
Fixed overhead | 73904 | 75000 | -1096 | |
649468 | 620600 | 28868 |
2. Determine the following. If a variance amount is zero, enter "0" and select "Not applicable" from the drop-down list.
a. Direct materials usage variance
6,300
b. Direct labor rate variance
0
c. Direct labor usage variance 5,952
d. Fixed overhead spending and volume variances
Spending variance | ???? | Favorable |
Volume variance | ???? | Unfavorable |
e. Variable overhead spending and efficiency variances
Variable overhead spending variance | ??? | Unfavorable |
Variable overhead efficiency variance | ??? |
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