Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

step by step instructions for each answer, thanks in advance! Paynesville Corporation manutactures and sells a preservative used in food and drug manufacturing. The company

step by step instructions for each answer, thanks in advance! image text in transcribed
Paynesville Corporation manutactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calis for the company to manutacture and sell 18.000 liters at a budgeted price of $2 to per liter this year. The standard direct cost sheet for one itter of the preservative follows. Variable overhesd is applied based on direct labor hours. The wariable overhead rate is $110 per direct-tabor hour. The fiwed overhead rate (at the master budget level of activity) is $55 per unit. All non-manufacturing costs are fixed and are budgeted at $2.1 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $648.000 unfavorable. The following is the actual income statement (in thousands of dollars) for the yeac. During the year, the company purchased 194,000 pounds of material and employed 49,400 hours of direct labor, Required: a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances. (For all requirements, enter your answers in whole dollars. 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Examination And Prevention

Authors: W. Steve Albrecht, Chad O. Albrecht

1st Edition

053872689X, 978-0538726894

More Books

Students also viewed these Accounting questions