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The Bartlett Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated
The Bartlett Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of Bartlett adopted the following standards for its manufacturing costs: 2017, Requirement 1. Prepare a schedule of total standard manufacturing costs for the 8,600 output units in January 2017. Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total Data table Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Standard manufacturing cost per output unit Input Cost per Output Unit 2 lb. at $4 per lb. $ 8.00 4 hrs. at $17 per hr. 68.00 $8 per DLH 32.00 28.00 $7 per DLH $ 136.00 Print Done - Data table The denominator level for total manufacturing overhead per month in 2017 is 43,000 direct manufacturing labor-hours. Bartlett's budget for January 2017 was based on this denominator level. The records for January indicated the following: Direct materials purchased Direct materials used Direct manufacturing labor Total actual manufacturing overhead (variable and fixed) Actual production 19,200 lb. at $4.10 per lb. 16,700 lb. 33,400 hrs. at $16.50 per hr. $625,000 8,000 output units Requirements Print Done 1. Prepare a schedule of total standard manufacturing costs for the 8,600 output units in January 2017. 2. For the month of January 2017, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance, based on purchases b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance Print Done - - X
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