Question
The Burnett 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
The Burnett 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
2017 Burnett adopted the following standards for its manufacturing costs:
Requirements
1. | Prepare a schedule of total standard manufacturing costs for the 7200 |
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 | |
Input | Cost per Output Unit | |||
Direct materials | 5 lb. at $4 per lb. | $20.00 | ||
Direct manufacturing labor | 6 hrs. at $13 per hr. | 78.00 | ||
Manufacturing overhead: | ||||
Variable | $8 per DLH | 48.00 | ||
Fixed | $9 per DLH | 54.00 | ||
Standard manufacturing cost per output unit | $200.00 |
Requirement 1. Prepare a schedule of total standard manufacturing costs for the
7200 output units in January 2017
.
Direct materials | $144,000 |
Direct manufacturing labor | 561,600 |
Manufacturing overhead: | |
Variable | 345,600 |
Fixed | 388,800 |
Total | $1,440,000 |
Requirement 2. For the month of January 2017 ,
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. | ||||
x | ||||
Actual Costs | Budgeted Price | Flexible | ||
Incurred | Purchases | Usage | Budget | |
Direct materials | ? | ? | ? | ? |
Please can you help me in computing this Table I got stock. Kindly Show All the Solutions Thank you
I Figured it out thank you though.
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