Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Worthing Woodworking builds and manufactures dining room tables for both home and restaurant locations. Wendy Worthing, the company's controller, developed the following standard costs for

image text in transcribed
image text in transcribed
Worthing Woodworking builds and manufactures dining room tables for both home and restaurant locations. Wendy Worthing, the company's controller, developed the following standard costs for each 48-foot table. Ms. Worthing developed these standards based on the company manufacturing 1,200 tables per month. Standard Price Standard Quantity $45.00/linear foot 5 linear feet 12 DLH $18.50 per DLH 12 DLH $16.20 per DLH Standard Cost Direct materials $225.00 Direct labor 222.00 Variable overhead 194.40 Fixed overhead 343.20 Total standard cost per table $984.60 12 DLH $28.60 per DLH At the end of the current month, Wendy reported the following operational results: The company actually manufactured 1,100 tables during the month. 5,900 linear feet of direct materials were purchased during the month at a total cost of $258,420. 5,400 linear feet of direct materials were used to manufacture the tables 13,400 direct labor hours were worked at a total cost of $242,880. Actual variable overhead was $234,600. Actual fixed overhead was $410,500. Required a. Calculate the direct material price variance for the month. b. Calculate the direct material quantity variance for the month. Calculate the direct labor rate variance for the month. C. d. Calculate the direct labor efficiency variance for the month. MacBook Pro Required a. Calculate the direct material price variance for the month. b. Calculate the direct material quantity variance for the month. C. Calculate the direct labor rate variance for the month. d. Calculate the direct labor efficiency variance for the month. e. Calculate the variable overhead spending variance for the month. f. Calculate the variable overhead efficiency variance for the month. Variance Formulas: Direct materials price variance: AQ x (AP - SP) Direct materials quantity variance: SP X (AQ - SQ) Direct labor ate variance: AQ X (AP-SP) Direct labor quantity variance: SP X (AQ - SQ) Variable overhead spending variance: Actual cost - (SP X AQ) Variable overhead efficiency variance: SP x (AQ - SQ)

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

Accounting

Authors: Peter J. Eisen

5th Edition

0764135473, 9780764135477

More Books

Students also viewed these Accounting questions