Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLZ HELP HW 1.1 Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problemis as shown by

PLZ HELP HW 1.1
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problemis as shown by its June contribution format income statement below. Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things under control: Upon reviewing the plant's income statement. Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold She has been provided with the following standard cost per swimming nool: During June the plant produced 3,000 pools and incurred the following costs: During June the plant produced 3,000 poois and incurred the following costs: a. Purchased 23,000 pounds of materials at a cost of $3.20 per pound. b. Used 8,800 pounds of materials in production. (Finlshed goods and work in process inventories are insignificant and can be ignored.) c. Worked 2000 direct labor hours at a cost of $570 per hour: d. Incurred varlable manufacturing overhead cost totaling $1,710 for the month. A total of 900 machine hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. Required: 1. Compute the following varlances for June: a. Materials price and quantity variances: b. Labor rate and efficiency variances. c. Vartable overhead rate and efficiency vatiances. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the mo Complete this question by entering your answers in the tabs below. 1a. Compute the following variances for June, materiats price and quantity variances. 16. Compute the following variances for June, labor rate and efficiency variances. ic. Comnute the following variances for June, variable overhead rate and efficlency varian ces (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "UT" for unfavorable, and None" lor no elfect (fie, zero var ance), Input all amounts as pohteve values? Complete this question by entering your answers in the tabs below. 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the following variances for June, labor rate and eificiency variances. 1e. Compute the following varlances for June, varlable overhead rate and effictency variances. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance), Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. Summarize the varlances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. (indicate the effect of each variance by selecting " F " for favorable, " U " for unfavorable, and "None" for no effect (i.e., gern varianre), Tnput the amount as nositive yalue)

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

Step: 3

blur-text-image

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

Accounting And Finance For Non Finance Managers

Authors: Jai Kumar Batra

1st Edition

9352806964, 978-9352806966

More Books

Students also viewed these Accounting questions

Question

Why do you think most employers opt for the home-based salary plan?

Answered: 1 week ago