2 PR 23-2B Flexible budgeting and variance analysis Women's Coats Men's Coats Actual production 4,400 5,800 Actual Price per Unit Actual Quantity Purchased and Used Obj. 1, 2, 3 $1.90 per Ib. Filler 48,000 Liner 8.20 per yd. 85,100 I'm Really Cold Coat Company makes women's and men's coats. Both products Actual Labor Rate Actual Labor Hours Used $14.10 per hr. 13.30 per hr. Women's coats 1,825 require filler and lining material. The following planning information has been made Excel Men's coats 2,800 available: Standard Amount per Unit Women's Coats 4.0 lb. 7.0 yds. Men's Coats Standard Price per Unit The expected beginning inventory and desired ending inventory were realized. 5.2 lb. 9.4 yds. 0.50 hr. $2.00 per Ib. 8.00 per yd. Filler 5.2 Ib. Instructions Liner Standard labor time 0.40 hr Women's Coats 5,000 units $14.00 per hr. 1. Prepare the following variance analyses for both coats and the total, based on the actual results and production levels at the end of the budget year: Men's Coats Planned production 6,200 units Standard labor rate $13.00 per hr. a. Direct materials price, quantity, and total variance Answer+ I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of b. Direct labor rate, time, and total variance filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced 2. Why are the standard amounts in part (1) based on the actual production at the end of the the following actual results: year instead of the planned production at the beginning of the year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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I attached a picture of the Accounting Textbook practice problem instructions (instructions show 2 pictures, it can be read from the first image on the left to the 2nd image on the right), and then I posted a 2nd picture of the actual excel problem where answers need to be inserted (anywhere that there is a blank grey square needs to be solved).

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L52
B
E
F
G
H
J
A
B
D
E
F
G
H
J
33
Standard cost
12
34
Total direct materials cost variance (favorable) unfavorable
10,940
13
35
14 1. a.
Supporting calculations:
Standard quantity used of filler:
Coats produced
Standard amount per coat (Ibs.)
15
Direct Materials Variance
Filler
Liner
Total
16
Price variance:
Womens
Men's
Total
38
4,400
5,800
Actual price
Standard price
17
1.90
8.20
18
2.00
8.00
39
4.00
5.20
19
Variance
40
Total
17,600
30,160
47,760
(0.10)
48,000
(4,800)
0.20
Actual quantity
Direct materials price variance (favorable) unfavorable
Standard quantity used of liner:
Coats produced
Standard amount per coat (yds.)
20
85,100
41
21
22
23
17,020
$
12,220
42
4,400
5,800
43
7.00
9.40
Quantity variance:
Actual quantity used (Ibs.)
Standard quantity used (Ibs.)
Variance (Ibs.)
Standard price
Direct materials quantity variance{favorable) unfavorable
Total direct materials cost variance{favorable) unfavorable
44
Total
30,800
54,520
85,320
24
48.000
85,100
45
47,760
85,320
46
26
240
(220)
47
$2.00
$8.00
48
b.
Women's
Men's
28
480
(1,760)
(1,280)
49
Direct Labor Variance
Coats
Coats
Total
$
10,940
50
Rate variance:
30
51
Actual rate
31
Total direct materials cost variance:
Standard rate
32
Actual cost
53
Variance
33
Standard cost
Actual time
34
Total direct materials cost variance (favorable) unfavorable
$
10,940
55
Direct labor rate variance (favorable) unfavorable
35
56
Supporting calculations:
Standard quantity used of filler:
Coats produced
Standard amount per coat (Ibs.)
36
57
Time variance
37
Womens
Men's
Total
58
Actual tiime
38
4,400
5,800
39
4.00
5.20
59
Standard time
40
Total
17.600
30.160
47,760
60
Variance
41
61
Standard rate
Standard quantity used of liner:
Coats produced
Standard amount per coat (yds.)
Direct labor time variance (favorable) unfavorable
Total direct labor cost variance favorable) unfavorable
42
4,400
5,800
62
43
7.00
9.40
63
44
Total
30,800
54,520
85,320
64
45
65
Total direct labor cost variance:
46
66
Actual cost
47
67
Standard cost
48
b.
Women's
Men's
68
Total direct labor cost variance{favorable) unfavorable
49
Direct Labor Variance
Coats
Coats
Total
69
50
Dato uarinnco:
Transcribed Image Text:L52 B E F G H J A B D E F G H J 33 Standard cost 12 34 Total direct materials cost variance (favorable) unfavorable 10,940 13 35 14 1. a. Supporting calculations: Standard quantity used of filler: Coats produced Standard amount per coat (Ibs.) 15 Direct Materials Variance Filler Liner Total 16 Price variance: Womens Men's Total 38 4,400 5,800 Actual price Standard price 17 1.90 8.20 18 2.00 8.00 39 4.00 5.20 19 Variance 40 Total 17,600 30,160 47,760 (0.10) 48,000 (4,800) 0.20 Actual quantity Direct materials price variance (favorable) unfavorable Standard quantity used of liner: Coats produced Standard amount per coat (yds.) 20 85,100 41 21 22 23 17,020 $ 12,220 42 4,400 5,800 43 7.00 9.40 Quantity variance: Actual quantity used (Ibs.) Standard quantity used (Ibs.) Variance (Ibs.) Standard price Direct materials quantity variance{favorable) unfavorable Total direct materials cost variance{favorable) unfavorable 44 Total 30,800 54,520 85,320 24 48.000 85,100 45 47,760 85,320 46 26 240 (220) 47 $2.00 $8.00 48 b. Women's Men's 28 480 (1,760) (1,280) 49 Direct Labor Variance Coats Coats Total $ 10,940 50 Rate variance: 30 51 Actual rate 31 Total direct materials cost variance: Standard rate 32 Actual cost 53 Variance 33 Standard cost Actual time 34 Total direct materials cost variance (favorable) unfavorable $ 10,940 55 Direct labor rate variance (favorable) unfavorable 35 56 Supporting calculations: Standard quantity used of filler: Coats produced Standard amount per coat (Ibs.) 36 57 Time variance 37 Womens Men's Total 58 Actual tiime 38 4,400 5,800 39 4.00 5.20 59 Standard time 40 Total 17.600 30.160 47,760 60 Variance 41 61 Standard rate Standard quantity used of liner: Coats produced Standard amount per coat (yds.) Direct labor time variance (favorable) unfavorable Total direct labor cost variance favorable) unfavorable 42 4,400 5,800 62 43 7.00 9.40 63 44 Total 30,800 54,520 85,320 64 45 65 Total direct labor cost variance: 46 66 Actual cost 47 67 Standard cost 48 b. Women's Men's 68 Total direct labor cost variance{favorable) unfavorable 49 Direct Labor Variance Coats Coats Total 69 50 Dato uarinnco:
V PR 23-2B
Flexible budgeting and variance analysis
Women's Coats
Men's Coats
Actual production
4,400
5,800
Actual Price per Unit
Actual Quantity Purchased and Used
Obj. 1, 2, 3
Filler
$1.90 per Ib.
48,000
Liner
8.20 per yd.
85,100
I'm Really Cold Coat Company makes women's and men's coats. Both products
Actual Labor Rate
Actual Labor Hours Used
Women's coats
$14.10 per hr.
1,825
require filler and lining material. The following planning information has been made
Excel
Men's coats
13.30 per hr.
2,800
available:
Standard Amount per Unit
Men's Coats
Standard Price per Unit
The expected beginning inventory and desired ending inventory were realized.
Women's Coats
$2.00 per Ib.
8.00 per yd.
Filler
4.0 lb.
5.2 lb.
Liner
7.0 yds.
9.4 yds.
Instructions
Standard labor time
0.40 hr.
0.50 hr.
1. Prepare the following variance analyses for both coats and the total, based on the actual results and
Women's Coats
Men's Coats
Planned production
5,000 units
6,200 units
production levels at the end of the budget year:
Standard labor rate
$14.00 per hr.
$13.00 per hr.
a. Direct materials price, quantity, and total variance
Answer +
I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of
b. Direct labor rate, time, and total variance
filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced
2.
Why are the standard amounts in part (1) based on the actual production at the end of the
the following actual results:
year instead of the planned production at the beginning of the year?
Transcribed Image Text:V PR 23-2B Flexible budgeting and variance analysis Women's Coats Men's Coats Actual production 4,400 5,800 Actual Price per Unit Actual Quantity Purchased and Used Obj. 1, 2, 3 Filler $1.90 per Ib. 48,000 Liner 8.20 per yd. 85,100 I'm Really Cold Coat Company makes women's and men's coats. Both products Actual Labor Rate Actual Labor Hours Used Women's coats $14.10 per hr. 1,825 require filler and lining material. The following planning information has been made Excel Men's coats 13.30 per hr. 2,800 available: Standard Amount per Unit Men's Coats Standard Price per Unit The expected beginning inventory and desired ending inventory were realized. Women's Coats $2.00 per Ib. 8.00 per yd. Filler 4.0 lb. 5.2 lb. Liner 7.0 yds. 9.4 yds. Instructions Standard labor time 0.40 hr. 0.50 hr. 1. Prepare the following variance analyses for both coats and the total, based on the actual results and Women's Coats Men's Coats Planned production 5,000 units 6,200 units production levels at the end of the budget year: Standard labor rate $14.00 per hr. $13.00 per hr. a. Direct materials price, quantity, and total variance Answer + I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of b. Direct labor rate, time, and total variance filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced 2. Why are the standard amounts in part (1) based on the actual production at the end of the the following actual results: year instead of the planned production at the beginning of the year?
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