Use image 1 numbers for requirements below (requirements 1-3)
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Smanufactures headphone cases. During September
2018,the company produced and sold
105,000 cases and recorded the following cost data:
i Data Table Variable Manufacturing Overhead 0.02 hours 10.00 per hour Fixed Manufacturing Overhead ($32,300 for static budget volume of 95,000 units and 1,900 hours, or $17 per hour) Actual Cost Information Direct Materials (205,000 parts @ $ (1,600 hours @ $ 0.20 per part) 9.15 per hour) Direct Labor $ 41,000 14,640 13,000 25,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead Print Print Done Done SmartSound manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. %) P23-27A (similar to) Question Help SoundSmart manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance 360 F FOH cost variance Actual FOH - Budgeted FOH = $ FOH volume variance = Budgeted FOH - Allocated FOH Requirement 3. SoundSmart's management used better quality materials during September. Discuss the trade-off between the two direct material variances. SoundSmart's management knew that using higher quality materials would result in a(n) unfavorable direct material cost variance . They hoped these materials would result in more efficient usage than "standard" materials. The result was an overall unfavorable direct material flexible budget variance. SoundSmart manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Direct materials cost variance (AC - SC) XAQ (AC - SC) XAQ Variance = $ 10,550' U $ 249' u Direct labor cost variance Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead: S = standard cost: SO = standard quantity SoundSmart manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. = Direct materials efficiency variance Direct labor efficiency variance (AQ - SQ) x SC (AQ - SQ) x SC '= $ = $ 800' F. 4,000 FT Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) VOH cost variance Formula (AC - SC) XAQ (AO - SO SC = $ - $ Variance 5,260 F 5500 FT VOH affiniannu varianna i Data Table Variable Manufacturing Overhead 0.02 hours 10.00 per hour Fixed Manufacturing Overhead ($32,300 for static budget volume of 95,000 units and 1,900 hours, or $17 per hour) Actual Cost Information Direct Materials (205,000 parts @ $ (1,600 hours @ $ 0.20 per part) 9.15 per hour) Direct Labor $ 41,000 14,640 13,000 25,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead Print Print Done Done SmartSound manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. %) P23-27A (similar to) Question Help SoundSmart manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance 360 F FOH cost variance Actual FOH - Budgeted FOH = $ FOH volume variance = Budgeted FOH - Allocated FOH Requirement 3. SoundSmart's management used better quality materials during September. Discuss the trade-off between the two direct material variances. SoundSmart's management knew that using higher quality materials would result in a(n) unfavorable direct material cost variance . They hoped these materials would result in more efficient usage than "standard" materials. The result was an overall unfavorable direct material flexible budget variance. SoundSmart manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Direct materials cost variance (AC - SC) XAQ (AC - SC) XAQ Variance = $ 10,550' U $ 249' u Direct labor cost variance Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead: S = standard cost: SO = standard quantity SoundSmart manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. = Direct materials efficiency variance Direct labor efficiency variance (AQ - SQ) x SC (AQ - SQ) x SC '= $ = $ 800' F. 4,000 FT Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) VOH cost variance Formula (AC - SC) XAQ (AO - SO SC = $ - $ Variance 5,260 F 5500 FT VOH affiniannu varianna
