Requirement 1. Prepare a schedule of total standard manufacturing costs for the

8,600

output units in January

2017.

Direct materials
Direct manufacturing labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total

Requirement 2. For the month of January

2017,

compute the variances, indicating whether each is favorable (F) or unfavorable (U).

Before computing the variances complete the tables below. Begin by completing the table for direct materials.

		Actual Input Quantity Budgeted Price
	Actual Costs Incurred	Purchases	Usage	Flexible Budget
Direct materials

a.

Direct materials price variance, based on purchases, is

b.

The direct materials efficiency variance is

Now complete the table for direct labor.

	Actual Costs Incurred	Actual Input Quantity Budgeted Price	Flexible Budget
Direct Manufacturing Labor

c.

The direct manufacturing labor price variance is

d.

The direct manufacturing labor efficiency variance is

Next, complete the table for variable overhead.

	Actual Costs Incurred	Actual Input Quantity Budgeted Price	Flexible Budget	Allocated Overhead
Variable Manufacturing Overhead

Finally, complete the table for fixed overhead.

	Actual Costs Incurred	Same Budgeted Lump Sum Regardless of Output Level	Flexible Budget	Allocated Overhead
Fixed Manufacturing Overhead

e.

The total manufacturing overhead spending variance is

f.

The variable manufacturing overhead efficiency variance is

g.

The production-volume variance is

1. Prepare a schedule of total standard manufacturing costs for the 8,600 output units in January 2017 2. For the month of January 2017, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a Direct materials price variance, based on purchases b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance . Variable manufacturing overhead efficiency variance g. Production volume variance The denominator level for total manufacturing overhead per month in 2017 is 43,000 direct manufacturing labor hours. Blazon's budget for January 2017 was based on this denominator level. The records for January indicated the following: Direct materials purchased 35.600 lb. at $3.75 perib Direct materials used 34,600 lb Direct manufacturing labor 35,900 hrs. at $11.50 per hr. Total actual manufacturing overhead (variable and fixed) $625,000 Actual production 8.600 output units Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Standard manufacturing cost per output unit Input 46. at 54 per Ib. 4 hrs. at $11 perhe Sper DLH $9 per DLH Cost per Output Unit $ 16.00 44.00 24.00 36.00 120.00