Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Incorporated, manufactures auto accessories. One...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664e89e8a004a_144664e89e841fc8.jpg)
Transcribed Image Text:
Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 990 hours each month to produce 1,980 sets of covers. The standard costs associated with this level of production are: Total Direct materials Direct labor $ 45,738 $ 6,930 Per Set of Covers $ 23.10 3.50 Variable manufacturing overhead (based on direct labor-hours) $ 3,168 1.60 $ 28.20 During August, the factory worked only 1,000 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month: Direct materials (10,000 yards) Direct labor Variable manufacturing overhead Total Per Set of Covers $ 56,000 $ 9,250 $ 4,500 $ 22.40 3.70 1.80 $ 27.90 At standard, each set of covers should require 3.3 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the varlable overhead rate and efficiency variances for August. (Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 990 hours each month to produce 1,980 sets of covers. The standard costs associated with this level of production are: Total Direct materials Direct labor $ 45,738 $ 6,930 Per Set of Covers $ 23.10 3.50 Variable manufacturing overhead (based on direct labor-hours) $ 3,168 1.60 $ 28.20 During August, the factory worked only 1,000 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month: Direct materials (10,000 yards) Direct labor Variable manufacturing overhead Total Per Set of Covers $ 56,000 $ 9,250 $ 4,500 $ 22.40 3.70 1.80 $ 27.90 At standard, each set of covers should require 3.3 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the varlable overhead rate and efficiency variances for August. (Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
In Exercises 1126, determine whether each equation defines y as a function of x. x + y = 16
-
Monitoring data an Oregon catchment produce the following record of annual precipitation and runoff: a) Determine a linear relationship between runoff and precipitation using linear regression...
-
From the following balance extracted from the books of accounts of Solid Steels Limited as on 31st March 2017, prepare the statement of profit and loss. The closing stock as on 31st March 2017:...
-
A number between 1 and 10, inclusive, is randomly chosen, and the events A and B are defined as follows: A: 5The number is even.6 B: 5The number is less than 7.6 a. Identify the sample points in the...
-
Hospital personnel routinely examine patient records for error, such as incomplete insurance information, on incomplete patient history, or missing/incomplete medical records. On average, about 250...
-
Suppose you put half of your money in Monster Beverage and half in IBM. What would the beta of this combination be if Monster Beverage has a beta of 1.52 and Pepsi has a beta of .55? a) 1.00 b) .35...
-
Calculate the expected return of the portfolio. You may use word or excel to complete all the missing sections of the table below and paste your answer here. Company Number of shares Price Expected...
-
Tristan Walker of Walker & Company says, "We are only going to design, develop, and test products and services uniquely tailored to our community's needs. I get it. I'm a part of the community we are...
-
Ace Cosmetics Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000;...
-
7. At this point you now know information about both the horizontal and the vertical components of the projectile's velocity. In the space below, draw a diagram of the vector components of Vx and...
-
Complete autonomy in how you demonstrate the following criteria. In this module, we talked more about leadership. We discussed the differences between leadership theory which is a well-substantiated...
-
Accustart Ltd. acquired 38% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.76 million for 144,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that...
-
Temporary preliminary and permanent injunction differ in a. Duration b. Eligibility criteria c. Time of imposition d. All of the above
-
Briefly discuss the implications of the financial statement presentation project for the reporting of stockholders equity.
-
Refer to the completely randomized design of Example 10.4, in which we concluded that at least two of the four brands of golf balls are associated with different mean distances traveled when struck...
-
Chemical properties of whole wheat breads. Whole wheat breads contain a high amount of phytic acid, which tends to lower the absorption of nutrient minerals. The Journal of Agricultural and Food...
-
A multiple-comparison procedure for comparing four treatment means produced the confidence intervals shown here. Rank the means from smallest to largest. Which means are significantly different? LO4...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App