Problem 10-14 Basic Variance Analysis (LO10-1, LO10-2, LO10-3) Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materiais Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.20 ounces 0.80 hours 0.80 hours Standard Price Standard or hate Cost $16.00 per $35.20 ounce $12.00 per hour 9.60 $ 2.50 per hour 2.00 946.80 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 11,000 ounces at a cost of $160,600 b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory The company employs 23 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhead costs during November totaled $4,200, e. During November the company produced 3.500 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances. b. In the past, the 23 technicians employed in the production of Fludex consisted of 7 senior technicians and 16 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances Complete the question by entering your answers in the the below RELA for direct materiais, comote the price and quantity wariances the west which www.ufurable, and want for me it was an input allows Marcade 12 Next > 107 the work you have completed so far, it does not indicate completion OF Mours cost 2.30 ounces Direct baterials Direct Labor Variable manufacturing overhead Total standard cost per unit 0.00 hours 0.30 hours per $16.00 ounce $12.00 per hour $ 2.50 per hour $35.20 9.60 2.00 546.00 During November, the following activity was recorded related to the production of Flude: a. Materiais purchased, 11.000 ounces at a cost of $160,600, b. There was no beginning inventory of materials, however, at the end of the month, 3.100 ounces of material remained in ending inventory c. The company employs 23 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hout d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhead costs during November totaled 54,200 e. During November, the company produced 3,500 units of Fiudex. Required: 1. For direct materials a. Compute the price and quantity variances b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances b. In the past, the 23 technicians employed in the production of Fludex consisted of 7 senior technicians and 16 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances Anwar complete Complete this question by entering you were in the album R 2 Forrect bar computer and an efect af for and account Roge Standard Quantity O Hours Standard Price Standard or Rate Coat Direct materials 2.20 ounces $16.00 per Direct labor Variable manufacturing overhead Total standard cost per unit 0.80 hours 0.80 hours ounce $12.00 per hour $ 2.50 per hour $35.20 9.60 2.00 $46.80 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 11,000 ounces at a cost of $160,600. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory. c. The company employs 23 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,200. e. During November, the company produced 3,500 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances b. In the past, the 23 technicians employed in the production of Fiudex consisted of 7 senior technicians and 16 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Answer is not complete Complete this question by entering your answers in the tabs below MALA ZA Com the viable eventuate and efficiency and reach a hy for, Utowarowe, and to effectieverance pour les we owerhede varianne Vached Next > Problem 10-15 Comprehensive Variance Analysis (L010-1, LO10-2. LO10-3) Miler Toy Company manufactures a plastic swimming poolates Westwood Plant. The plant has been experiencing problems as shown by its june contribution format income intement below Flexible budget Wales 1,990 pools) S205 206 20 Yare Variable cont of yoda wold 1,240 1.525 Variable sallang expOD 21.00 Total Variable espana LUZON Contribution sais Tired expen! Mantantering over 47,000 65,000 Selling and 85,000 85,000 ministrative Total fixed expenses 12,0 15,000 Ne operating in one 14,100 (3.525) flo1 Contains direct materials, direct labor, and variable manufacturing overhead 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. Dum 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 pool dardandard Picard Guantity or Eure or at Direct materials 3.5 pounds $9.0 pound 1.35 Direct labor 9. Mr. per har 2.04 Variable matering 9.) 1.10 per hr 0.93 Overhead toare Total standard per unit Based on machine-hours During June, the plant produced 7000 pools and incurred the following costs a. Purchased 29,500 pounds of materials at a cost of 52 55 per pound. b. Used 24.300 pounds of materials in production. Finished goods and work in process inventories are insignificant and can be ignored) Worked 3.400 direct labor hours at a cost of $7.30 per hour a incurred variable manufacturing overhead cost totaling $8.400 for the month. A total of 2.400 machine hoors 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 variances for June a Materials price and quantity variances. Labor rate and efficiency variances Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in above by showing the net overal favorable or unfavorable variance for the month Canet this the by the le Computing udande I come and were 100 the Problem 10-15 Comprehensive Variance Analysis (L010-1, LO10-2. LO103) Miler Toy Company manufactures a plastic swimming pool tits Westwood Plant. The plant has been experiencing problems as shown by its une contribution format income statement below Flexible Metal get tales 67.000 pools) 25000 25000 Variable expenses Variable coet at good Variable selling expenses 11.0 Total variable exponans EUR Castrition rin RICHTET Tied expenses Manufacturing overhead 7.000 47.000 Talling and 25,000 $5,000 ministrative Total fixed penes 152T Bat operating income 14.60 $ (3,5255 lo) *Contains direct materials, direct labor, and variable manufacturing overhead 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. Durn 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 pool Tamilart Otity or Standard Trice standard wer 3.5 Direct materials pounds 32.10 pp 1.35 Direct labor 0.4 ore 17.60 per hour 0,3 Variable sanataturing hourg 13.10 per bow 0.23 Total standard com per unit Based on machine-hours During June, the plant produced 7000 pools and incurred the following costs a. Purchased 29.500 pounds of materials at a cost of $2.55 per pound Used 24,300 pounds of materials in production Finished goods and work in process inventories are insignificant and can be ignored) Worked 3.400 direct bor hours at a cost of $7.30 per hour dincurred variable manufacturing overhead cost totaling $8.400 for the month. A total of 2.400 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 variances for June a. Materials price and quantity variances. b Labor rate and efficiency variances c. Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in above by showing the net overall favorable or unfavorable variance for the month the wewe h - H unfavorable variance for the month. owing the net overall favora Complete this question by entering your answers in the tabs below. Hind: qured 2 1a. Compute the following variances for Dune, materials price and quantity variances 1b. Compute the following variances for June, laborate and effidency wariances. e Compute the rellowing variances for June, variable overhead rate and efficiency variances, 06 not round your termediate calculations. Indicate the area of each variance by Sciting for favorable for unfavorable, and "None for no effect is to variance Input amounts as positive values Show 1a Malprice and Material quantity and 16 Labore Labor licency walance 1a Vara wariante Variable de variance Required 2 > favorable variance for the month. Complete this question by entering your answers in the tabs below. Required Required 2 Summarize the variances 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 (1.2., zero variance) Input all amounts as positive values.) Net vantano 107 the work you have completed so far, it does not indicate completion OF Mours cost 2.30 ounces Direct baterials Direct Labor Variable manufacturing overhead Total standard cost per unit 0.00 hours 0.30 hours per $16.00 ounce $12.00 per hour $ 2.50 per hour $35.20 9.60 2.00 546.00 During November, the following activity was recorded related to the production of Flude: a. Materiais purchased, 11.000 ounces at a cost of $160,600, b. There was no beginning inventory of materials, however, at the end of the month, 3.100 ounces of material remained in ending inventory c. The company employs 23 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hout d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhead costs during November totaled 54,200 e. During November, the company produced 3,500 units of Fiudex. Required: 1. For direct materials a. Compute the price and quantity variances b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances b. In the past, the 23 technicians employed in the production of Fludex consisted of 7 senior technicians and 16 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances Anwar complete Complete this question by entering you were in the album R 2 Forrect bar computer and an efect af for and account Roge Standard Quantity O Hours Standard Price Standard or Rate Coat Direct materials 2.20 ounces $16.00 per Direct labor Variable manufacturing overhead Total standard cost per unit 0.80 hours 0.80 hours ounce $12.00 per hour $ 2.50 per hour $35.20 9.60 2.00 $46.80 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 11,000 ounces at a cost of $160,600. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory. c. The company employs 23 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,200. e. During November, the company produced 3,500 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances b. In the past, the 23 technicians employed in the production of Fiudex consisted of 7 senior technicians and 16 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Answer is not complete Complete this question by entering your answers in the tabs below MALA ZA Com the viable eventuate and efficiency and reach a hy for, Utowarowe, and to effectieverance pour les we owerhede varianne Vached Next > Problem 10-15 Comprehensive Variance Analysis (L010-1, LO10-2. LO10-3) Miler Toy Company manufactures a plastic swimming poolates Westwood Plant. The plant has been experiencing problems as shown by its june contribution format income intement below Flexible budget Wales 1,990 pools) S205 206 20 Yare Variable cont of yoda wold 1,240 1.525 Variable sallang expOD 21.00 Total Variable espana LUZON Contribution sais Tired expen! Mantantering over 47,000 65,000 Selling and 85,000 85,000 ministrative Total fixed expenses 12,0 15,000 Ne operating in one 14,100 (3.525) flo1 Contains direct materials, direct labor, and variable manufacturing overhead 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. Dum 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 pool dardandard Picard Guantity or Eure or at Direct materials 3.5 pounds $9.0 pound 1.35 Direct labor 9. Mr. per har 2.04 Variable matering 9.) 1.10 per hr 0.93 Overhead toare Total standard per unit Based on machine-hours During June, the plant produced 7000 pools and incurred the following costs a. Purchased 29,500 pounds of materials at a cost of 52 55 per pound. b. Used 24.300 pounds of materials in production. Finished goods and work in process inventories are insignificant and can be ignored) Worked 3.400 direct labor hours at a cost of $7.30 per hour a incurred variable manufacturing overhead cost totaling $8.400 for the month. A total of 2.400 machine hoors 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 variances for June a Materials price and quantity variances. Labor rate and efficiency variances Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in above by showing the net overal favorable or unfavorable variance for the month Canet this the by the le Computing udande I come and were 100 the Problem 10-15 Comprehensive Variance Analysis (L010-1, LO10-2. LO103) Miler Toy Company manufactures a plastic swimming pool tits Westwood Plant. The plant has been experiencing problems as shown by its une contribution format income statement below Flexible Metal get tales 67.000 pools) 25000 25000 Variable expenses Variable coet at good Variable selling expenses 11.0 Total variable exponans EUR Castrition rin RICHTET Tied expenses Manufacturing overhead 7.000 47.000 Talling and 25,000 $5,000 ministrative Total fixed penes 152T Bat operating income 14.60 $ (3,5255 lo) *Contains direct materials, direct labor, and variable manufacturing overhead 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. Durn 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 pool Tamilart Otity or Standard Trice standard wer 3.5 Direct materials pounds 32.10 pp 1.35 Direct labor 0.4 ore 17.60 per hour 0,3 Variable sanataturing hourg 13.10 per bow 0.23 Total standard com per unit Based on machine-hours During June, the plant produced 7000 pools and incurred the following costs a. Purchased 29.500 pounds of materials at a cost of $2.55 per pound Used 24,300 pounds of materials in production Finished goods and work in process inventories are insignificant and can be ignored) Worked 3.400 direct bor hours at a cost of $7.30 per hour dincurred variable manufacturing overhead cost totaling $8.400 for the month. A total of 2.400 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 variances for June a. Materials price and quantity variances. b Labor rate and efficiency variances c. Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in above by showing the net overall favorable or unfavorable variance for the month the wewe h - H unfavorable variance for the month. owing the net overall favora Complete this question by entering your answers in the tabs below. Hind: qured 2 1a. Compute the following variances for Dune, materials price and quantity variances 1b. Compute the following variances for June, laborate and effidency wariances. e Compute the rellowing variances for June, variable overhead rate and efficiency variances, 06 not round your termediate calculations. Indicate the area of each variance by Sciting for favorable for unfavorable, and "None for no effect is to variance Input amounts as positive values Show 1a Malprice and Material quantity and 16 Labore Labor licency walance 1a Vara wariante Variable de variance Required 2 > favorable variance for the month. Complete this question by entering your answers in the tabs below. Required Required 2 Summarize the variances 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 (1.2., zero variance) Input all amounts as positive values.) Net vantano