Question
Please help! Thank you! Champlain Manufacturing has two direct cost categories: direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to
Please help! Thank you!
Champlain Manufacturing has two direct cost categories: direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Champlain's manufacturing costs:
Direct cost categories Standard Quantity Cost per Input Unit Direct materials 7.4 pounds per output unit $ 11.15 per pound Direct Labor 0.25 hours per out put unit $ 21.50 per hour
Manufacturing Overhead Cost per Input Unit Variable manufacturing Overhead $ 9.25 per Direct Labor Hour
May data Direct materials purchased and used $ 10.75 per pound 91,000 pounds Direct Labor $ 22.25 per hour 4,300 labor hours Actual variable manufacturing overhead $ 32,500 Actual Production 12,500 output units
Part a) and Part b) Calculate the following variances: Direct Materials Price Variance and Direct Materials Quantity Variance
Provide a possible reason for the favorable or unfavorable Direct Materials Price Variance. Provide a possible reason for the favorable or unfavorable Direct Materials Quantity Variance. Provide a possible reason for the favorable or unfavorable Total Direct Materials Variance.
Part c) and Part d) Calculate the following variances: Direct Labor Rate Variance and Direct Labor Efficiency Variance
Provide a possible reason for the favorable or unfavorable Direct Labor Rate Variance. Provide a possible reason for the favorable or unfavorable Direct Labor Efficiency Variance. Provide a possible reason for the favorable or unfavorable Total Direct Labor Variance.
Part e) and Part f) Calculate the following variances: Variable Manufacturing Overhead Spending Variance and Variable Manufacturing Overhead
Provide a possible reason for the favorable or unfavorable Variable Manufacturing Overhead Spending Variance. Provide a possible reason for the favorable or unfavorable Variable Manufacturing Overhead Efficiency Variance. Provide a possible reason for the favorable or unfavorable Total Variable Overhead Variance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started