Soundsmart manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data:
SoundSmart manufactures dhone cases, Duing September 2018. The company produced and sold 100000 cases and recorded the following cost data (Click the icon to view the cost data) Read the requirements Requirement 1. Compute the cost and ency variances for direct materials and drect labor. Begin with the cost variances. Select the required formulas, compute the cost varices for direct materials and direct labor and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC actual quantity, FOH fred overhead: SC standard costs Wandard quantity) actual cost: AQ- Variance Derect materials cool variance Direct labor cost variance actual Next compute the eficiency variances Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used: AC cost. A actual Quantity, FOH was overhead: standard cost standard quantity) - Direct materials efficiency ance Direct laborate variance Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the food overhead cost and volume variances Now compute the variable overhead coal and elency wariances Select the required formes, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable For unfavorable (U). (Abbreviations used: AC actual cost: Q = acha quantity, FOH teed overhead, standard cost 80 standard quantity: VOH - variable overhead.) Variance VOH cost variance Choose from any list or enterary number in the input fields and then continue to the next question SoundSmart manufactures Headphone cases. During September 2018, the company produced and sold 108.000 cases and recorded the following cost data: (Click the icon to view the cost data) Read the requirements Direct materials cancy variance Direct labor efficiency variance - Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the find overhead cost and volume variances Now compute the variable overhead cost and efficiency variances Select the required formulas, compute the a b ovend cost and efficiency variances and identify whether each variance is favorable (F) or unfavorable (U). Abbreviations used: AC = actual cost: A = actual quandy FOH = fred overhead: SC standard cost 80 standard quandy. VOH variable overhead) Formula VOH col variance VOH aiciency variance - Now compute the fandoverhead cont d volume variances Select the reared formulas, compute the fixed overhead cost and volume variances and Identity whether each variance is lavoratie (For actual con actual quantity, FOH-fred overhead: SC - standard con: SQ - standard quantity) favorable (U). (Abbreviations used: AC FOost variance FOH volume variance Requirement 3. SoundSmart's management used better quality materials during September. Discuss the trade-off between the two direct material variances SoundSmart's management new th ing higher quality materials would resultina) They hoped these materials would rest in more ac ant aage than 'andard materialsThe most an overal Choose from any list or erranty number in the input fields and then continue to the next question A Requirements Compute the cost and efficiency variances for direct materials and direct labor. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. SoundSmart's management used better quality materials during September. Discuss the trade-off between the two direct material variances. Print Done Standard Cost Information Cost $ Direct Materials Direct Labor Variable Manufacturing Overhead Quantity 2 parts 0.02 hours 0.02 hours 0.16 per part 9.00 per hour 11.00 per hour Fixed Manufacturing Overhead ($33,320 for static budget volume of 98,000 units and 1,960 hours, or $17 per hour) Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (212,000 parts @ (1,660 hours @ $ 0.21 per part) $ 9.10 per hour) $ 44,520 15,106 8,000 28,000
