Question
Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (fiberglass) 15 sq. ft. $
Rip Tide Company manufactures surfboards. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (fiberglass) | 15 | sq. ft. | $ | 5 | per sq. ft. | $ | 75.00 | |
| Direct labor | 10 | hrs. | $ | 15 | per hr. | 150.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 10 | hrs. | $ | 6 | per hr. | 60.00 | ||
| Fixed manufacturing overhead ($24,000 300 units) | 80.00 | |||||||
Rip Tide has the following actual results for the month of June:
| Number of units produced and sold | 326 | |
| Number of square feet of fiberglass used | 5,060 | |
| Cost of fiberglass used | $ | 27,830 |
| Number of labor hours worked | 3,200 | |
| Direct labor cost | $ | 50,240 |
| Variable overhead cost | $ | 14,390 |
| Fixed overhead cost | $ | 25,300 |
Required: 1. Calculate the direct materials price, quantity, and total spending variances for Rip Tide.
2. Calculate the direct labor rate, efficiency, and total spending variances for Rip Tide.
3. Calculate the variable overhead rate, efficiency, and total spending variances for Rip Tide.
4. Calculate the fixed overhead spending (budget) and volume variances for Rip Tide.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
