Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show steps if possible. Thanks Problem 10-28 Comprehensive Variance Analysis (LO2, LO3, LO4, LOS, LO6] Helix Company produces costumes used in the television and

image text in transcribedimage text in transcribedimage text in transcribedPlease show steps if possible. Thanks

Problem 10-28 Comprehensive Variance Analysis (LO2, LO3, LO4, LOS, LO6] Helix Company produces costumes used in the television and movie industries. Recently the company received an ongoing order for Samurai robes to be worn in an upcoming Japanese historical action series made for television. The company uses a standard costing system to assist in the control of costs. According to the standards set for these robes, the factory has a denominator activity level of 780 direct labour-hours each month, which should result in the production of 1,950 robes. The standard costs associated with this level of production are as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total $ 35,490 $ 7,020 $ 2,340 $ 4,680 Per Unit of Product $ 18.20 3.60 1.20 2.40 $ 25.40 *Based on direct labour-hours During April, the factory worked only 760 direct labour-hours and produced 2,000 robes. The following actual costs were recorded during the month: Direct materials (6,000 metres) Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total $36,000 $ 7,600 $ 3,800 $ 4,600 Per Unit of Product $ 18.00 3.80 1.90 2.30 $ 26.00 At standard, each robe should require 2.8 metres of material. All of the materials purchased during the month were used in production. Required: Compute the following variances for April: 1. The materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Material price variance Material quantity variance 2. The labour rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance 3. The variable manufacturing overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance 4. The fixed manufacturing overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Method And Meaning Teachers Guide

Authors: R.M.S. Wilson

2nd Edition

0412436205, 978-0412436208

More Books

Students also viewed these Accounting questions

Question

Assess three steps in the selection process.

Answered: 1 week ago

Question

Identify the steps in job analysis.

Answered: 1 week ago