Cruise Manufacturing has two direct cost categories direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs Direct Cost Categories Standard Quantity Cost per Input Unit Direct Materials 12 pounds per output unit $15 per pound Direct Labor 3 hours per output uve $21 per hour Manufacturing Overhead Cost per Input Unit Variable Manufacturing Overhead $12 per Direct Labor Hour By the end of Apr 2019 Cruise Manufacturing records indicated the following Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production $11.44 per pound 95,000 pounds $22 per hour 48,000 labor hours Do not enter dollar signs or commas in the input boxes Round all answers to the nearest whole number Enter the variances as positive values. Calculate the following variances. al Direct materials price variance 338200 Favorable $390,000 17,000 output units b) Direct materials quantity variance. 1635000 Favorable c) Direct labor rate variance 48000 Unfavorable d) Direct labor efficiency variance Favorable # e) Variable manufacturing overhead spending variance Favorable †) Variable manufacturing overhead efficiency variance Favorable
Cruise Manufacturing has two direct cost categories direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs Direct Cost Categories Standard Quantity Cost per Input Unit Direct Materials 12 pounds per output unit $15 per pound Direct Labor 3 hours per output uve $21 per hour Manufacturing Overhead Cost per Input Unit Variable Manufacturing Overhead $12 per Direct Labor Hour By the end of Apr 2019 Cruise Manufacturing records indicated the following Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production $11.44 per pound 95,000 pounds $22 per hour 48,000 labor hours Do not enter dollar signs or commas in the input boxes Round all answers to the nearest whole number Enter the variances as positive values. Calculate the following variances. al Direct materials price variance 338200 Favorable $390,000 17,000 output units b) Direct materials quantity variance. 1635000 Favorable c) Direct labor rate variance 48000 Unfavorable d) Direct labor efficiency variance Favorable # e) Variable manufacturing overhead spending variance Favorable †) Variable manufacturing overhead efficiency variance Favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cruise Manufacturing has two direct cost categories direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs
Direct Cost Categories.
Standard Quantity
Cost
per Input Unit
pound
Direct Materials 12 pounds per output unit $15 per
Direct Labor 3 hours per output unit $21 per hour
Manufacturing Overhead
Cost per Input Unit
Variable Manufacturing Overhead $12 per Direct Labor Hour
By the end of Apr 2019 Cruise Manufacturing records indicated the following
Direct materials purchased and used
Direct labor
Total actual variable manufacturing overhead
Actual production
$11.44 per pound
95,000 pounds
$22 per hour 48,000 labor hours
Do not enter dollar signs or commas in the input boxes
Round all answers to the nearest whole number
Enter the variances as positive values.
Calculate the following variances.
al Direct materials price variance
338200
Favorable
$390,000
17,000 output units
b) Direct materials quantity variance.
1635000
Favorable
c) Direct labor rate variance
48000
Unfavorable
d) Direct labor efficiency variance
Favorable #
e) Variable manufacturing overhead spending variance
Favorable
†) Variable manufacturing overhead efficiency variance
Favorable
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