Use for Q#19 to Q#28]

The Mitchell Frock Company manufactures women's clothing. Work in Process is charged with standard manufacturing costs, including both variable and fixed factory overhead.

The Kismet nightgown is the sole product of the sheer department and is produced in standard lots which contain 125 units.

The relevant standards and budgets are as follows:

Raw Materials:

Silk: 500 metres per lot @ $3.60 per metre

Lace: 360 metres per lot @ $5.50 per metre

Direct Labor: 60 hours per lot @ $3.50 per hour.

Budgeted Overhead: $1.50 variable per hour plus $12,000 fixed per month

Normal volume is budgeted at 50 lots of production per month.

All overhead is applied on a direct labor hourly basis.

The actual operations and costs in the sheet department for the month of March, are summarized below:

Purchases of Materials:

Silk: 30,000 metres @ $3.50 per metre

Lace: 20,000 metres @ $5.75 per metre

Usage of Materials:

Silk: 26,850 metres

Lace: 22,280 metres

Direct Labor: 3,500 hours @ $3.66 per hour.

Overhead:

Variable: $ 5,450

Fixed: $12,750

Output: 56 lots of Kismet nightgowns

Required:

Compute the requested variances from a standard cost for the month of March.

Flag question: Spacer

FORMULAS:

MPV = (SP - AP) x AQ

MEV = (SQ - AQ) x SP

LRV = (SR - AR) x AQ

LEV = (SQ - AQ) x SR

VOHSV = (AQ x SR) - Actual Cost

VOHEV = (SQ x SR) - (AQ x SR)

Allocated

Spending or Rate

FOHSV = Budgeted FOH - Actual Cost

Allocated Budgeted FOH

FOHPVV = (SQ x SR) - [Denom x SR]

(or Denom) allowed

Flag question: Question 19

Question 191 pts

The MPV on silk (point of purchase) is

Group of answer choices

2,685 F

3,000 F

2,685 U

15,000 F

4,140 F

Flag question: Question 20

Question 201 pts

The MEV (lace) is

Group of answer choices

12,190 U

12,540 U

13,110 U

880 U

11,660 U

Flag question: Question 21

Question 211 pts

The MPV on lace (point of usage) is

Group of answer choices

5,000 U

3,000 F

5,600 U

5,560 F

5,570 U

Flag question: Question 22

Question 221 pts

The MEV (silk) is

Group of answer choices

4,025 F

7,200 F

11,340 F

4,140 F

11,025 F

Flag question: Question 23

Question 231 pts

The LRV is

Group of answer choices

490 U

560 U

80 F

350 F

350 U

Flag question: Question 24

Question 241 pts

The LEV is

Group of answer choices

1,260 U

504 U

512 U

490 U

1,750 U

Flag question: Question 25

Question 251 pts

The fixed overhead denominator (production volume) variance is

Group of answer choices

750 F

3,360 F

2,200 F

1,440 F

0

Flag question: Question 26

Question 261 pts

The variable overhead efficiency variance is

Group of answer choices

210 U

750 U

550 U

460 U

410 U

Flag question: Question 27

Question 271 pts

The fixed overhead (spending) rate variance is

Group of answer choices

1,440 U

310 U

520 U

750 U

0

Flag question: Question 28

Question 281 pts

The variable overhead (spending) rate variance is

Group of answer choices

750 U

500 U

200 U

210 U

360 U