Steven Rogers is a cost accountant and business analyst for Dashing Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Rogers feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. E (Click the icon to view the standards.) E: (Click the icon to view the actual results for April.) Read the requirements. Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials. Actual Input Qty. i Data Table Data Table Flexible Actual Costs Incurred Budgeted Price Purchases Usage Budget Direct materials At the beginning of 2017, DDC budgeted annual production of 400,000 doorknobs and adopted the following standards for each doorknob: Input Cost/Doorknob Direct materials (brass) 0.3 lb. @ $8/b. $ 2.40 Direct manufacturing labor 12 hours @ $19/hour 22.80 a. Direct materials price variance (based on purchases) is Actual results for April 2017 were as follows: Production 30,000 doorknobs Direct materials purchased 12,100 lb. at $9/b. Direct materials used 7,500 lbs. Direct manufacturing labor 28,900 hours for $578,000 Variable manufacturing overhead $64,200 Fixed manufacturing overhead $160,000 b. The direct materials efficiency variance is Manufacturing overhead: Now complete the table for direct labor. Variable $6/b x 0.3 lb. 1.80 4.20 Actual Input Qty. Fixed $14/b. x 0.3 lb. 31.20 Flexible Budget Standard cost per doorknob Print Actual Costs Incurred L Print Done Done Budgeted Price Direct Manuf. Labor L Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Actual Input Qty. Actual Costs Incurred Flexible Budget Budgeted Price Direct Manuf. Labor C. The direct manufacturing labor price variance is d. The direct manufacturing labor efficiency variance is D O Next, complete the table for variable overhead. (Abbreviation used: Manuf = Manufacturing) Actual Input Qty. Actual Costs Incurred | Flexible Budget Allocated Overhead Budgeted Price Variable Manuf. OH e. The variable manufacturing overhead spending variance is f. The variable manufacturing overhead efficiency variance is Complete the table for fixed overhead. Choose from any list or enter any number in the input fields and then continue to the next question. f. The variable manufacturing overhead efficiency variance is Complete the table for fixed overhead. Actual Costs Incurred Same Budgeted Lump Sum Regardless of Output Level Flexible Budget Allocated Overhead Fixed Manuf. OH g. The production-volume variance is h. The fixed manufacturing overhead spending variance is Requirement 2. Can Rogers use any of the variances to help explain any of the other variances? Give examples. for brass than they had planned. If this is because they purchased a quality brass, it may explain why they used brass than expected (leading to an) material efficiency The direct materials price variance indicates that DDC paid variance) variable overhead efficiency variance. The purchase of this quality of brass may also explain why it took labor time to produce the In turn, since variable manufacturing overhead is assigned based on pounds of materials used, this directly led to the doorknobs than expected (the direct labor efficiency variance). Finally, the direct labor price variance could imply that the workers who were hired were experienced than expected, which could also be related to the direct material and direct labor efficiency variances. Choose from any list or enter any number in the input fields and then continue to the next question. Steven Rogers is a cost accountant and business analyst for Dashing Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Rogers feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. E (Click the icon to view the standards.) E: (Click the icon to view the actual results for April.) Read the requirements. Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials. Actual Input Qty. i Data Table Data Table Flexible Actual Costs Incurred Budgeted Price Purchases Usage Budget Direct materials At the beginning of 2017, DDC budgeted annual production of 400,000 doorknobs and adopted the following standards for each doorknob: Input Cost/Doorknob Direct materials (brass) 0.3 lb. @ $8/b. $ 2.40 Direct manufacturing labor 12 hours @ $19/hour 22.80 a. Direct materials price variance (based on purchases) is Actual results for April 2017 were as follows: Production 30,000 doorknobs Direct materials purchased 12,100 lb. at $9/b. Direct materials used 7,500 lbs. Direct manufacturing labor 28,900 hours for $578,000 Variable manufacturing overhead $64,200 Fixed manufacturing overhead $160,000 b. The direct materials efficiency variance is Manufacturing overhead: Now complete the table for direct labor. Variable $6/b x 0.3 lb. 1.80 4.20 Actual Input Qty. Fixed $14/b. x 0.3 lb. 31.20 Flexible Budget Standard cost per doorknob Print Actual Costs Incurred L Print Done Done Budgeted Price Direct Manuf. Labor L Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Actual Input Qty. Actual Costs Incurred Flexible Budget Budgeted Price Direct Manuf. Labor C. The direct manufacturing labor price variance is d. The direct manufacturing labor efficiency variance is D O Next, complete the table for variable overhead. (Abbreviation used: Manuf = Manufacturing) Actual Input Qty. Actual Costs Incurred | Flexible Budget Allocated Overhead Budgeted Price Variable Manuf. OH e. The variable manufacturing overhead spending variance is f. The variable manufacturing overhead efficiency variance is Complete the table for fixed overhead. Choose from any list or enter any number in the input fields and then continue to the next question. f. The variable manufacturing overhead efficiency variance is Complete the table for fixed overhead. Actual Costs Incurred Same Budgeted Lump Sum Regardless of Output Level Flexible Budget Allocated Overhead Fixed Manuf. OH g. The production-volume variance is h. The fixed manufacturing overhead spending variance is Requirement 2. Can Rogers use any of the variances to help explain any of the other variances? Give examples. for brass than they had planned. If this is because they purchased a quality brass, it may explain why they used brass than expected (leading to an) material efficiency The direct materials price variance indicates that DDC paid variance) variable overhead efficiency variance. The purchase of this quality of brass may also explain why it took labor time to produce the In turn, since variable manufacturing overhead is assigned based on pounds of materials used, this directly led to the doorknobs than expected (the direct labor efficiency variance). Finally, the direct labor price variance could imply that the workers who were hired were experienced than expected, which could also be related to the direct material and direct labor efficiency variances. Choose from any list or enter any number in the input fields and then continue to the next