Score: 0.08 of 1 pt 3 of 3 (3 complete) HW Scd - X P23-28A (similar to) i More Info Stenback manufactures coffee mugs that it sells to other companies for customizing with their own logos. Stenback prepares flexible 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 60,100 coffee mugs per month a. There were no beginning or ending inventory balances. All expenditures were on (Click the icon to view the cost data) account. b. Actual production and sales were 62 800 coffee mugs c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. d. Actual direct labor usage was 201,000 minutes at a total cost of $32,160. e. Actual overhead cost was $8,040 variable and $32,860 fixed. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, a FOH = fixed overhead: SC = standard cost, SQ = standard quantity.) f. Selling and administrative costs were $110,000 Formula Variance Direct materials cost variance (AC-SC) XAQ = S = Print 800 F Done Direct labor cost variance (AC-SC) AQ $ 4,020 U i Dat Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identity AQ = actual quantit = standard cost, SQ = standard quantity.) Direct Materials (0.2 lbs @ $ 0.25 per lb) Formula 0.05 $ Variance Direct Labor = (AQ - SQ)X SC (3 minutes @ 0.42 Direct materials efficiency variance $ 0.14 per minute) Manufacturing Overhead Direct labor efficiency variance = (AQ-SQ)X SC Variable ( 3 minutes @ $ 0.06 per minute) $ 0.18 Fixed (3 minutes @ $ 0.13 per minute) 0.39 0.57 1.04 Total Cost per Coffee Mug Choose from any list or enter any number in the input fields and then click Check