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someone please do this right!!!! Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs.
someone please do this right!!!! Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September:
K4 | X7 | |||
---|---|---|---|---|
Standards | ||||
Direct materials | 0.75 | pounds at $9.20 per pound | 1 | pound at $9.80 per pound |
Direct labor | 1.25 | hours at $27.20 per hour | 1.50 | hours at $30 per hour |
Variable overhead (per direct labor-hour) | $ 22.40 | $ 24.20 | ||
Fixed overhead (per month) | $ 417,840 | $ 494,760 | ||
Expected activity (direct labor-hours) | 17,410 | 23,560 | ||
Actual results | ||||
Direct material (purchased and used) | 10,900 | pounds at $8.60 per pound | 14,260 | pounds at $10.10 per pound |
Direct labor | 14,860 | hours at $27.50 per hour | 22,360 | hours at $33.80 per hour |
Variable overhead | $ 355,060 | $ 470,212 | ||
Fixed overhead | $ 392,740 | $ 491,800 | ||
Units produced (actual) | 12,320 | units | 14,560 | units |
Required:
Prepare a variance analysis for each variable cost for each product.
Prepare a fixed overhead variance analysis for each product.
Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
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