Roots manufactures coffee mugs that its sels to other companies for customizing with their own logos. Root prepares flexiable budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,900 coffee mugs per month

Requirement 1. Compute the cost and efficicenty variances for direct matierals and direct labor

Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.)

P23-28A (similar to) 3 Question Help Root manufactures coffee mugs that it sells to other companles for customizing with their own logos. Root prepares Actual cost and production Information for July 2018 follows: flexible budgets and uses u stundurd post system to control manufacturing costs. The standard unit cost of a coffee A (Click the icon to view actual cost and production Information.) mug is based on static budget volume of 59,900 coffee mugs per month: (Click the icon to view the cost data.) Read the requirements, Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead: SC = standard cost; SQ = standard quantity.) Variance -1,200 Formula (AC-SC) XAQ (AQ - SQ)X SC Direct materials cost variance Direct labor cost variance F = = = = i Data Table - X More Info - X $ 0.05 0.30 Direct Materials ( 0.2 lbs @ $ 0.25 per b) Direct Labor 3 minutes @ $ 0.10 per minute) Manufacturing Overhead: Variable ! 3 minutes @ $ 0.04 per minute) $ Fixed (3 minutes @ $ 0.13 per minute) 0.12 0.39 a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,600 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of So. 17 per lb. d. Actual direct labor usage was 199,000 minutes at a total cost of $25,870. e. Actual overhead cost was $4,975 variable and $35,925 fixed. f. Selling and administrative costs were $123,000. 0.51 $ 0.86 Choose from any list or Total Cost per Coffee Mug 12 parts 12 remaining Print Done Print Done