Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

r 10 Probelm 10 - 9 - Saved to this PC- O Search Layout References Mailings Review View Help A ALI | 1 Normal 1

image text in transcribed
image text in transcribed
r 10 Probelm 10 - 9 - Saved to this PC- O Search Layout References Mailings Review View Help A ALI | 1 Normal 1 No Spac... Heading 1 Heading 2 Title Styles Paragraph 15 Problem 10 - 9: Comprehensive Variance Analysis Marvel Parts, Inc., 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 2,850 hours each month to produce 1,900 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct Materials S42.560 $22.40 Direct Labor $17,100 9.00 Variable Manufacturing overhead (based on direct labor-hours) 56,840 3.60 $35.00 During August, the factory worked only 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers ter 10 Probelm 10-9 - Saved to this PC Search Layout References Mailings Review View Help wa AO ALI | 1 Normal Title Heading 2 1 No Spac. Heading 1 Paragraph Styles 5 S45.600 $22.80 Direct Materials (12,000 yards) S18,200 9.10 Direct Labor $7,000 3.50 Variable Manufacturing overhead (based on direct labor-hours) $35.40 At standard, each set of covers should require 5.6 yards of material. All of the materials purchased during the month were used in production Required: Compute the following variances for August: 1. The materials price and quantity variance. 2. The labor rate and efficiency variance, 3. The variable overhead rate and efficiency variance. For o Brason Home

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_2

Step: 3

blur-text-image_3

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

Corporate Financial Reporting And Analysis A Global Perspective

Authors: S. David Young, Jacob Cohen, Daniel A. Bens

4th Edition

1119494575, 978-1119494577

More Books

Students also viewed these Accounting questions

Question

3. Job rotation is used for all levels and types of employees.

Answered: 1 week ago