Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 25 See schedule for due date. You may develop your own working paper format (i.e. use the matrix format) or use the working papers

Problem 25 See schedule for due date. You may develop your own working paper format (i.e. use the matrix format) or use the working papers provided. Deckers Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $9.10 per pound $ 9.10 Direct labor-1.5 hours at $15.60 per hour 23.40 Variable manufacturing overhead 11.25 Fixed manufacturing overhead 3.75 Total standard cost per unit $47.50 The predetermined manufacturing overhead rate is $10 per direct labor hour ($15.00 1.5). It was computed from a master manufacturing overhead budget based on normal production of 7,500 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $56,250 ($7.50 per hour) and total fixed overhead costs of $18,750 ($2.50 per hour). Actual costs for October in producing 4,950 units were as follows. Direct materials (5,130 pounds) $ 48,684 Direct labor (7,000 hours) 113,750 Variable overhead 56,690 Fixed overhead 21,426 Total manufacturing costs $240,550 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Instructions Compute the following variances for Deckers Corporation and indicate whether the variance is favorable or unfavorable (F or U). Round computations and final answers to 0 decimal places. Show all computations or no credit given. 1. Total materials variance 2. Direct materials price variance 3. Direct materials quantity variance 4. Total labor variance 5. Direct labor price variance 6. Direct labor quantity variance 7. Total overhead 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

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

EAuditing Fundamentals Virtual Communication And Remote Auditing

Authors: J.P. Russell, Shauna Wilson

1st Edition

0873898486, 978-0873898485

More Books

Students also viewed these Accounting questions

Question

What are your options besides a rote memory approach?

Answered: 1 week ago

Question

6. Explain the strengths of a dialectical approach.

Answered: 1 week ago