Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please review Pdf for problem since there are some charts that would not be able to paste here. Thank You. 29 Standard Cost and Flexible
Please review Pdf for problem since there are some charts that would not be able to paste here. Thank You.
29 Standard Cost and Flexible Budget. Brier Company produces car covers. The company's master budget shows the following standards information. Expected production for September 5,000 units Direct materials 8 yards per unit at $5 per yard Direct labor 3 hours per unit at $16 per hour Variable manufacturing overhead 3 direct labor hours per unit at $2 per hour Required: 1 Calculate the standard cost per unit for direct materials, direct labor, and variable manufacturing overhead using the format shown in Figure 10.1 " Standard Costs at Jerry's Ice Cream". 2 Assume Brier Company produced 5,100 car covers during the month of September. Prepare a flexible budget for direct materials, direct labor, and variable manufacturing overhead using the format shown in Figure 10.2 "Flexible Budget for Variable Production Costs at Jerry's Ice Cream". 30 Materials and Labor Variances. Brier Company produces car covers. (This is the same company as the previous exercise. This exercise can be assigned independently.) For direct materials, the standard price for 1 yard of material is $5 per yard. A standard quantity of 8 yards of material is expected to be used for each car cover produced. During September, Brier Company purchased 45,000 yards of material for $238,500 and used 39,000 yards to produce 5,100 car covers. For direct labor, Brier Company established a standard number of direct labor hours at three hours per car cover. The standard rate is $16 per hour. A total of 14,700 direct labor hours were worked during September, at a cost of $238,140, to produce 5,100 car covers. Required: 1 Calculate the materials price variance and materials quantity variance using the format shown in Figure 10.4 " Direct Materials Variance Analysis for Jerry's Ice Cream". Clearly label each variance as favorable or unfavorable. 2 Calculate the labor rate variance and labor efficiency variance using the format shown in Figure 10.6 "Direct Labor Variance Analysis for Jerry's Ice Cream". Clearly label each variance as favorable or unfavorableStep 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