The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: : (Click the icon to view the standards.) The number of finished units budgeted for January 2017 was 10,000; 9,850 units were actually produced (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 100,000 lb., at a total cost of $465,000. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Read the requirements Requirement 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Actual input Budgeted price Cost Direct materials (purchases) Direct materials (usage) Direct manufacturing labor X Next determine the formula and calculate the costs for the flexible budget. Actual input x Budgeted input for actual output Flexible budget cost Direct materials Direct manufacturing labor Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). Price Efficiency variances variances Direct materials Direct manufacturing labor Requirement 4. Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? is found most often. The production point is where responsibility for is found most often. Schuyler Corporation may calculate variances at different points in time to The purchasing point is where responsibility for tie in with 1 Standards $ 45.00 Direct materials: 10 lb. at $4.50 per lb. Direct manufacturing labor: 0.5 hour at $30 per hour 15.00 Actual Data Actual results in January 2017 were as follows: Direct materials: 98,055 lb. used Direct manufacturing labor: 4,900 hours $ 154,350 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor. 2. Prepare journal entries to record the variances in requirement 1. 3. Comment on the January 2017 price and efficiency variances of Schuyler Corporation 4. Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: : (Click the icon to view the standards.) The number of finished units budgeted for January 2017 was 10,000; 9,850 units were actually produced (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 100,000 lb., at a total cost of $465,000. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Read the requirements Requirement 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Actual input Budgeted price Cost Direct materials (purchases) Direct materials (usage) Direct manufacturing labor X Next determine the formula and calculate the costs for the flexible budget. Actual input x Budgeted input for actual output Flexible budget cost Direct materials Direct manufacturing labor Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). Price Efficiency variances variances Direct materials Direct manufacturing labor Requirement 4. Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? is found most often. The production point is where responsibility for is found most often. Schuyler Corporation may calculate variances at different points in time to The purchasing point is where responsibility for tie in with 1 Standards $ 45.00 Direct materials: 10 lb. at $4.50 per lb. Direct manufacturing labor: 0.5 hour at $30 per hour 15.00 Actual Data Actual results in January 2017 were as follows: Direct materials: 98,055 lb. used Direct manufacturing labor: 4,900 hours $ 154,350 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor. 2. Prepare journal entries to record the variances in requirement 1. 3. Comment on the January 2017 price and efficiency variances of Schuyler Corporation 4. Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time
