Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the last two times i have submitted this question have been answered incorrectly, please please help and answer with full accuracy and show the numbers

the last two times i have submitted this question have been answered incorrectly, please please help and answer with full accuracy and show the numbers exactly as they fit into the chart

I will give a fantastic 5 star review with the correct answer, thank you so so so much please help

information

image text in transcribedimage text in transcribed
Springsteen Company manufactures guitars. The company uses a standard, job-order cost-accounting system in two production departments. In the Construction Department, the wooden guitars are built by highly skilled craftsmen and coated with several layers of lacquer. Then the units are transferred to the Finishing Department, where the bridge of the guitar is attached and the strings are installed. The guitars also are tuned and inspected in the Finishing Department. The diagram below depicts the production process. Construction Department {BasIc guitar bullt from veneered wood) and Inspectad.) Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the guitars has a standard price of $12 per pound. The other parts needed to complete each guitar, such as the bridge and strings, cost $15 per guitar. The labor standards for Springsteen's two production departments are as follows: Construction Department: & hours of direct labor at $20 per hour Finishing Department: 3 hours of direct labor at $15 per hour The following pertains to the month of July. 1. There were no beginning or ending work-in-process inventories in either production department. 2. There was no beginning finished-goods inventory. 3. Actual production was 500 guitars, and 300 guitars were sold on account for $400 each. 4. The company purchased 6,000 pounds of veneered wood at a price of $12.50 per pound. 5. Actual usage of veneered wood was 4,500 pounds of the wood purchased during July. 6. Enough parts (bridges and strings) to finish 600 guitars were purchased at a cost of $9,000. 7. The Construction Department used 2,850 direct-labor hours. The total direct-labor cost in the Construction Department was $54.150. 8. The Finishing Department used 1,570 direct-labor hours. The total direct-labor cost in that department was $25,120. 9. There were no direct-material variances in the Finishing Department. 3. Complete the following cost variance report for July. Springsteen Company investigates all variances greater than $5,000 or 5%. (Use Exhibit 10-5.) Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). Round "Percentage of Standard Cost" to 2 decimal places. SPRINGSTEEN COMPANY Cost Variance Report For the Month of July Construction Department Finishing Department Variance Percentage of Varia Amount Percentage of Standard Cost Investigation Amount Standard Cost Investig Required Requi Direct material: Standard cost, given actual output Direct-material price variance Unfavorable No 0 Unfavorable % No Direct-material quantity variance Unfavorable Yes Favorable No Direct-material purchase price variance Yes Unfavorable No Direct labor: Standard cost, given actual output 22,500 Direct-labor rate variance Favorable No Unfavorable % Yes Direct-labor efficiency variance Favorable No Unfavorable No

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

10th Edition

1119791081, 978-1119791089

More Books

Students also viewed these Accounting questions

Question

2. Information that comes most readily to mind (availability).

Answered: 1 week ago

Question

3. An initial value (anchoring).

Answered: 1 week ago

Question

4. Similarity (representativeness).

Answered: 1 week ago