Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance Production Volume Variance Price Variance X7 Efficiency Variance Production Volume Variance Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) K4 0.75 pounds at $8.00 per pound 1.25 hours at $26.00 per hour $21.20 $ 416,400 17,350 10,300 pounds at $7.40 per pound. 14,800 hours at $26.30 per hour $ 331,060 $ 386,740 12,200 units 1 pound at $8.60 per pound 1.50 hours at $30 per hour $ 23.00 $493,500 23,500 X7 14,200 pounds at $8.90 per pound 22,300 hours at $32.60 per hour $ 464,212 $ 490,840 14,500 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required:
a. Prepare a variance analysis for each variable cost for each product.
b. Prepare a fixed overhead variance analysis for each product.
Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for
favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Price Variance
K4
Efficiency Variance
Production Volume
Variance
Price Variance
X7
Efficiency Variance
Production Volume
Variance
Transcribed Image Text:Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance Production Volume Variance Price Variance X7 Efficiency Variance Production Volume Variance
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs.
The following data are for September:
Standards
Direct materials
Direct labor
Variable overhead (per direct labor-hour)
Fixed overhead (per month)
Expected activity (direct labor-hours)
Actual results
Direct material (purchased and used)
Direct labor
Variable overhead
Fixed overhead
Units produced (actual)
K4
0.75 pounds at $8.00 per pound
1.25 hours at $26.00 per hour
$21.20
$ 416,400
17,350
10,300 pounds at $7.40 per pound.
14,800 hours at $26.30 per hour
$ 331,060
$ 386,740
12,200 units
1 pound at $8.60 per pound
1.50 hours at $30 per hour
$ 23.00
$493,500
23,500
X7
14,200 pounds at $8.90 per pound
22,300 hours at $32.60 per hour
$ 464,212
$ 490,840
14,500 units
Required:
a. Prepare a variance analysis for each variable cost for each product.
b. Prepare a fixed overhead variance analysis for each product.
Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for
favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Transcribed Image Text:Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) K4 0.75 pounds at $8.00 per pound 1.25 hours at $26.00 per hour $21.20 $ 416,400 17,350 10,300 pounds at $7.40 per pound. 14,800 hours at $26.30 per hour $ 331,060 $ 386,740 12,200 units 1 pound at $8.60 per pound 1.50 hours at $30 per hour $ 23.00 $493,500 23,500 X7 14,200 pounds at $8.90 per pound 22,300 hours at $32.60 per hour $ 464,212 $ 490,840 14,500 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
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