- - The Beal 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 (DMLH). At the beginning of 2020, Beal adopted the following standards for its manufacturing costs: (Click to view the standards.) (Click to view additional information.) X Read the requirements. Data table X Data table The denominator level for total manufacturing overhead per month in 2020 is 37,000 direct manufacturing labor-hours. Beal's budget for January 2020 was based on this denominator RE level. The records for January indicated the following: Cost per Di Input Output Unit Direct materials purchased 40,300 lb. at $3.80 per lb. DI Direct materials 5 lb. at $4 per lb. 4 $ 20.00 Direct materials used 37,300 lb. VE Direct manufacturing labor 4 hrs. at $16 per hr. 64.00 Direct manufacturing labor 31,400 hrs. at $16.25 per hr. Fil Total actual manufacturing overhead (variable and Variable manufacturing overhead $8 per DMLH 32.00 fixed) $650,000 Td 36.00 Fixed manufacturing overhead $9 per DMLH Actual production 7,600 output units $ 152.00 Standard manufacturing cost per output unit - Requirements 1. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2020. 2. For the month of January 2020, 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 - - The Beal 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 (DMLH). At the beginning of 2020, Beal adopted the following standards for its manufacturing costs: (Click to view the standards.) (Click to view additional information.) X Read the requirements. Data table X Data table The denominator level for total manufacturing overhead per month in 2020 is 37,000 direct manufacturing labor-hours. Beal's budget for January 2020 was based on this denominator RE level. The records for January indicated the following: Cost per Di Input Output Unit Direct materials purchased 40,300 lb. at $3.80 per lb. DI Direct materials 5 lb. at $4 per lb. 4 $ 20.00 Direct materials used 37,300 lb. VE Direct manufacturing labor 4 hrs. at $16 per hr. 64.00 Direct manufacturing labor 31,400 hrs. at $16.25 per hr. Fil Total actual manufacturing overhead (variable and Variable manufacturing overhead $8 per DMLH 32.00 fixed) $650,000 Td 36.00 Fixed manufacturing overhead $9 per DMLH Actual production 7,600 output units $ 152.00 Standard manufacturing cost per output unit - Requirements 1. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2020. 2. For the month of January 2020, 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
