Question
Swifty Irrigation, Inc. is known throughout the world for its H2O-X high-capacity water pump, used in irrigation systems. The pumps standard cost is as follows.
Swifty Irrigation, Inc. is known throughout the world for its H2O-X high-capacity water pump, used in irrigation systems. The pumps standard cost is as follows. The companys predetermined fixed overhead rate is based on an expected capacity of 100,000 direct labor hours per month.
Standard Price | Standard Quantity | Standard Cost | |||||
---|---|---|---|---|---|---|---|
Direct materials | $7 per pound | 14 pounds | $98 | ||||
Direct labor | $8 per DLH | 4 DLH | 32 | ||||
Variable overhead | $9 per DLH | 4 DLH | 36 | ||||
Fixed overhead | $5 per DLH | 4 DLH | 20 | ||||
$186 |
During the month of September, the company produced 22,330 of the 25,000 pumps that had been scheduled for production in the budget. The company used 356,080 pounds of material during September. The direct labor payroll for the month was $593,400 for 93,900 direct labor hours. Variable overhead costs were $831,400; fixed overhead costs were $460,700. The companys purchasing agent signed a new supply contract that resulted in purchases of 477,400 pounds of direct materials at a total price of $3,150,840. Calculate Swifty direct materials, direct labor, and overhead variances for September. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Direct materials price variance | $enter a dollar amount rounded to 0 decimal places | select an option FavorableNot ApplicableUnfavorable | ||
---|---|---|---|---|
Direct materials quantity variance | $enter a dollar amount rounded to 0 decimal places | select an option UnfavorableNot ApplicableFavorable | ||
Direct labor rate variance | $enter a dollar amount rounded to 0 decimal places | select an option UnfavorableFavorableNot Applicable | ||
Direct labor efficiency variance | $enter a dollar amount rounded to 0 decimal places | select an option UnfavorableFavorableNot Applicable | ||
Variable overhead spending variance | $enter a dollar amount rounded to 0 decimal places | select an option Not ApplicableUnfavorableFavorable | ||
Variable overhead efficiency variance | $enter a dollar amount rounded to 0 decimal places | select an option FavorableUnfavorableNot Applicable | ||
Fixed overhead spending variance | $enter a dollar amount rounded to 0 decimal places | select an option UnfavorableNot ApplicableFavorable |
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