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Q29-A. What is sales volume variance? Answer: 5 F/U: Q29-B. What is selling price variance? Answer: 5 F/U: Q29-C. What is direct materials price variance?

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Q29-A. What is sales volume variance? Answer: 5 F/U: Q29-B. What is selling price variance? Answer: 5 F/U: Q29-C. What is direct materials price variance? Answer: $ F/U: Q29-D. What is direct materials efficiency variance? Answer: 5 F/U: Q29-E. What is direct manufacturing labor price variance? Answer: 5 F/U: Q29-F. What is direct manufacturing labor efficiency variance? Answer: $ F/U: Q29-G. What is variable manufacturing spending variance? Answer: $ F/U: Q29-H. What is variable manufacturing efficiency variance? Answer: $ F/U: Q29-1. What is fixed manufacturing spending variance? Answer: $ F/U: Q29-J. What is production volume variance? Answer: $ F/U:SFcakes is the supplier of various kinds of cakes to a variety of restaurants and caterers. The company uses a standard costing system. Its standard non-manufacturing overheads are fixed at $10,000 per month. The company has a standard monthly production and sales level of 1,000 units (cakes and sells its cakes at a standard unit selling price of $70. The standard manufacturing overheads are allocated on the basis of labor hours. The standard input quantities and prices for direct-cost inputs and overheads are as follows: Cost Item Quantity per Standard Unit Cake Costs Direct materials 3 pounds $5 per pound Direct manufacturing labor 2 hours $7 per hour Variable manufacturing overheads 2 hours $3 per hour Fixed manufacturing overheads 2 hours $6 per hour To understand more about the company's profitability, the following input usage information for January is gathered to help analyze the situation: Cost Item Actual Quantity Actual Cost Direct materials 4,500 pounds $21,700 Direct manufacturing labor 2,850 pounds $20,000 Variable manufacturing overheads $6,800 Fixed manufacturing overheads $13,000 Total non-manufacturing overheads (all fixed) $10,000 The actual output results for January are as follows: Actual Production level 1,400 units Sales volume 1,200 units Revenues $78,000 There are no inventory at the beginning of January. Inventory are valued at standard cost. The company uses absorption costing system. Production volume variance, if any, is written off to cost of goods sold

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