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Please show work for all the problems Bonita, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard
Please show work for all the problems
Bonita, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Standard Price Standard Quantity Standard Cost Direct materials $3 per yard 2.00 yards $6.00 Direct labor $14 per DLH 0.75 DLH 10.50 Variable overhead $3.20 per DLH 0.75 DLH 2.40 Fixed overhead $3 per DLH 0.75 DLH 2.25 $21.15 Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased 82,300 yards of fabric and used 93,900 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $463,050, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 603,000 shirts, using 453,000 direct labor hours. Though the budget for November was based on 45,800 shirts, the company actually produced 42,300 shirts during the month. Variable Overhead Budget Annual Budget Per Shirt November-Actual Indirect material $447,000 $1.20 $48,600 Indirect labor 298,000 0.75 31,700 Equipment repair 196,000 0.30 20,400 Equipment power 54,000 0.15 6,900 Total $995,000 $2.40 $107,600 Fixed Overhead Budget Annual Budget November-Actual Supervisory salaries $265,000 $22,000 Insurance 353,000 27,700 Property taxes 85,000 6,900 Depreciation 321,000 26,100 Utilities 209,000 20,700 Quality inspection 276,000 25,500 Total $1,509,000 $128,900 (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter O for the amounts.) $ Direct material price variance 16460 Favorable $ 27900 Unfavorable Direct material quantity variance (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter for the amounts.) (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable" and enter for the amounts.) Direct labor rate variance $ 66150 Favorable Direct labor efficiency variance $ 85050 Unfavorable (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable" and enter for the amounts.) $ 5800 Favorable Variable overhead spending variance $ 2400 Unfavorable Variable overhead efficiency variance (d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter for the amounts.)Step by Step Solution
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