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(a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable and enter O for the amounts) Direct material price variance Direct material quantity variance $ Direct labor rate variance $ (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) $ Direct labor efficiency variance $ (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable and enter O for the amounts) Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending variance $ (d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable and enter 0 for the amounts) $ $

(a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable and enter O for the amounts) Direct material price variance Direct material quantity variance $ Direct labor rate variance $ (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) $ Direct labor efficiency variance $ (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable and enter O for the amounts) Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending variance $ (d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable and enter 0 for the amounts) $ $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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(a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable and enter O for the amounts) Direct material price variance Direct material quantity variance $ Direct labor rate variance $ (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable and enter O for the amounts.) $ Direct labor efficiency variance $ (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending variance $ (d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts) $ $
Transcribed Image Text:(a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable and enter O for the amounts) Direct material price variance Direct material quantity variance $ Direct labor rate variance $ (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable and enter O for the amounts.) $ Direct labor efficiency variance $ (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending variance $ (d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, eg. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts) $ $
Marigold, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Direct materials Direct labor Variable overhead Fixed overhead Indirect material Indirect labor Equipment repair Equipment power Total Supervisory salaries Insurance Property taxes Depreciation Standard Price $3 per yard $14 per DLH $3.20 per DLH $3 per DLH Utilities Quality inspection Total Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. Annual Budget $449,000 The company purchased 82,000 yards of fabric and used 93,600 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $459,375, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 600,000 shirts, using 450,000 direct labor hours. Though the budget for November was based on 45.500 shirts, the company actually produced 42,000 shirts during the month. Variable Overhead Budget 295,000 195,000 51,000 Standard Quantity 200 yards 0.75 DLH 0.75 DLH $990,000 0.75 DLH 75,000 320,000 207,000 278,000 $1,491,000 $1.20 0.75 0.30 0.15 Fixed Overhead Budget Annual Budget November-Actual $256,000 355,000 Per Shirt November-Actual $2.40 $21,900 27,000 Standard Cost 6,600 25,600 20,900 25,300 $127,300 $6.00 $21.15 $49,300 10.50 30,900 20,800 7,400 2.40 $108,400 2.25
Transcribed Image Text:Marigold, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Direct materials Direct labor Variable overhead Fixed overhead Indirect material Indirect labor Equipment repair Equipment power Total Supervisory salaries Insurance Property taxes Depreciation Standard Price $3 per yard $14 per DLH $3.20 per DLH $3 per DLH Utilities Quality inspection Total Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. Annual Budget $449,000 The company purchased 82,000 yards of fabric and used 93,600 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $459,375, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 600,000 shirts, using 450,000 direct labor hours. Though the budget for November was based on 45.500 shirts, the company actually produced 42,000 shirts during the month. Variable Overhead Budget 295,000 195,000 51,000 Standard Quantity 200 yards 0.75 DLH 0.75 DLH $990,000 0.75 DLH 75,000 320,000 207,000 278,000 $1,491,000 $1.20 0.75 0.30 0.15 Fixed Overhead Budget Annual Budget November-Actual $256,000 355,000 Per Shirt November-Actual $2.40 $21,900 27,000 Standard Cost 6,600 25,600 20,900 25,300 $127,300 $6.00 $21.15 $49,300 10.50 30,900 20,800 7,400 2.40 $108,400 2.25
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