ACC 200 002 Spring 2020 10:30 am to 12:00 pm (IDAP) Riley Cabanero & 05/11/20 3:52 AM Homework: Chapter 23 Homework Save Score: 0 of 1 pt 3 of 3 (1 complete HW Score: 33.33%, 1 of 3 pts E Question Help Stenbeck manufactures coffee mugs at sells to other companies for customizing with their own logos Stenback prepares flexible budgets and uses a Mandard cost system to control manufacturing costs. The standard unit cost of a com ug is based or state budget volume of 60,200 coffee mugs per month click the icon to view the cost data) Acun cost and production Information for May 2018 follows: (Click the loon to view actuals and production Information) m Read the revirements 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 variance for direct materials and direct brand dertify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used AC actual cost: AQ - actual quantity, FOHfixed overhead, SC standard cost: SQ standard quantity) Variance Direct materials coat variance Formula (AC-SC) XAQ (AC-SC)XAQ . Read the requirements. ances fo Data Table e is favorabl mulas, og ead; SC Ormula SC) A 0.05 0.30 SC) XA Direct Materials ( 0.2 lbs @ $ 0.25 per lb) Direct Labor ( 3 minutes @ $ 0.10 per minute) Manufacturing Overhead: ( 3 minutes @ $ 0.04 per minute) $ Fixed (3 minutes @ $ 0.14 per minute) Total Cost per Coffee Mug 0.12 0.42 0.54 0.89 Print Print Done fields and then click Check Ansy it sells to other companies for customizing with their own logos. ses a standard cost system to control manufacturing costs. The don static budget volume of 60,200 coffee mugs per month: Actual cost and production information for July 2018 follows: (Click the icon to view actual cost and production information.) 0 Requirements ficiency variances for equired formulas, cor fixed overhead; SC ce is favorable (F) or u Formula (AC-SC) AC (AC-SC) x Ad 1. Compute the cost and efficiency variances for direct materials and direct labor. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. . Stenback intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Print Done er in the input fields and then click Check Answer. Clear All Scussions. Study guide will be posted on om one we Read the requirements. alas, * More Info ad; a. There were no beginning or ending inventory balances. All expenditures were on b. Actual production and sales were 62,900 coffee mugs. C. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 202,000 minutes at a total cost of $26,260. f. Selling and administrative costs were $130,000. Print Done
