Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 9-24 (Algo) Comprehensive Variance Analysis (LO9-4, LO9-5, LO9-6] Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat

image text in transcribed
image text in transcribed
Problem 9-24 (Algo) Comprehensive Variance Analysis (LO9-4, LO9-5, LO9-6] Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit neatly any small car. The company uses a standard cost system for all of its products. According to the standards that have been set for the seat covers the factory should work 1,070 hours each month to produce 2,140 sets of covers. The standard costs associated with this level of production are: per Set of Covers $ 12.60 Total $ 26,964 $11.770 Direct materials Direct labor Varlable manufacturing overhead (based on direct laber-hours) 5.50 $3,633 1.70 $ 19:30 During August, the factory worked only 1.000 direct labor. hours and produced 2.400 sets of covers. The following actual costs were recorded during the month Direct materials (6,000 yards) Direct labor Variable manufacturing overhead Total $ 29,280 $ 13,60 $5,760 Por set of Covers $ 12.20 5.70 2.40 5.2000 Al standard, each set of covers should require 15 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 variable overhead rate and efficiency variances for August 2 At standard, each set of covers should require 1.5 yards of material. All of the materials purchased cluring 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 variable overhead rate and efficiency variances for August (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.o., zero variance). Input all amounts as positive values.) 375 points 1 Materials price vanance 1 Matenas quantity arance 2 Laborrate variance 2 Labor ticiency vanance 3 Vale overhead tenance 3 Variable overhead officiency vonance

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

The Sixth International Congress On Accounting 1952

Authors: Various

1st Edition

0367512807, 9780367512804

More Books

Students also viewed these Accounting questions

Question

1. List the basic factors determining pay rates.pg 87

Answered: 1 week ago