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Data Table dphd he d Standard Cost Information Quantity Cost he c Direct Materials 2 parts $ 0.15 per part es. S Direct Labor 0.02 hours 7.00 per hour (U) Variable Manufacturing Overhead 0.02 hours 10.00 per hour ce Fixed Manufacturing Overhead ($31,360 for static budget volume of 98,000 units and 1,960 hours, or $16 per hour) var unfa Actual Cost Information Direct Materials (212,000 parts @ 2$ 0.20 per part) 42,400 Direct Labor (1,660 hours @ 7.15 per hour) 11,869 varia Variable Manufacturing Overhead 8,000 nce Fixed Manufacturing Overhead 28,000 nter Print Done

Data Table dphd he d Standard Cost Information Quantity Cost he c Direct Materials 2 parts $ 0.15 per part es. S Direct Labor 0.02 hours 7.00 per hour (U) Variable Manufacturing Overhead 0.02 hours 10.00 per hour ce Fixed Manufacturing Overhead ($31,360 for static budget volume of 98,000 units and 1,960 hours, or $16 per hour) var unfa Actual Cost Information Direct Materials (212,000 parts @ 2$ 0.20 per part) 42,400 Direct Labor (1,660 hours @ 7.15 per hour) 11,869 varia Variable Manufacturing Overhead 8,000 nce Fixed Manufacturing Overhead 28,000 nter Print Done

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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HeadsetHeadset
manufactures headphone cases. During September
20182018​,
the company produced and sold
108 comma 000108,000
cases and recorded the following cost​ data:
LOADING...
​(Click
the icon to view the cost​ data.)
 
Read the
requirements
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.
 
Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor.
 
Begin with the cost variances. Select the required​ formulas, compute the cost variances for direct materials and direct​ labor, and identify whether each variance is favorable​ (F) or unfavorable​ (U).​(Abbreviations used: AC​ = actual​ cost; AQ​ = actual​ quantity; FOH​ = fixed​ overhead; SC​ = standard​ cost; SQ​ = standard​ quantity.)
 
 
 
Formula
 
Variance
Direct materials cost variance
=
 
=
 
 
Direct labor cost variance
=
 
=
 
 
Next compute the efficiency variances. Select the required​ formulas, compute the efficiency variances for direct materials and direct​ labor, and identify whether each variance is favorable​ (F) or unfavorable​ (U).​(Abbreviations used: AC​ = actual​ cost; AQ​ = actual​ quantity; FOH​ = fixed​ overhead; SC​ = standard​ cost; SQ​ = standard​ quantity.)
 
 
 
Formula
 
Variance
Direct materials efficiency variance
=
 
=
 
 
Direct labor efficiency variance
=
 
=
 
 
Data Table dphd he d Standard Cost Information Quantity Cost he c Direct Materials 2 parts $ 0.15 per part es. S Direct Labor 0.02 hours 7.00 per hour (U) Variable Manufacturing Overhead 0.02 hours 10.00 per hour ce Fixed Manufacturing Overhead ($31,360 for static budget volume of 98,000 units and 1,960 hours, or $16 per hour) var unfa Actual Cost Information Direct Materials (212,000 parts @ 2$ 0.20 per part) 42,400 Direct Labor (1,660 hours @ 7.15 per hour) 11,869 varia Variable Manufacturing Overhead 8,000 nce Fixed Manufacturing Overhead 28,000 nter Print Done
Transcribed Image Text:Data Table dphd he d Standard Cost Information Quantity Cost he c Direct Materials 2 parts $ 0.15 per part es. S Direct Labor 0.02 hours 7.00 per hour (U) Variable Manufacturing Overhead 0.02 hours 10.00 per hour ce Fixed Manufacturing Overhead ($31,360 for static budget volume of 98,000 units and 1,960 hours, or $16 per hour) var unfa Actual Cost Information Direct Materials (212,000 parts @ 2$ 0.20 per part) 42,400 Direct Labor (1,660 hours @ 7.15 per hour) 11,869 varia Variable Manufacturing Overhead 8,000 nce Fixed Manufacturing Overhead 28,000 nter Print Done
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