Delta Products prepares its budgets on the basis of standard costs. A responsibility report is prepared monthly showing the differences between master budget and actual results. Variances are analyzed and reported separately. There are no materials inventories. The following information relates to the current period: Standard costs (per unit of output) Direct materials, 6 gallons $4.00 per gallon Direct labor, 5.00 hours $20.00 per hour $ 24 100 Factory overhead Variable (25% of direct labor cost) Total standard cost per unit 25 $ 149 Actual costs and activities for the month follow: Materials used Output 15,570 gallons at $1.89 per gallon 2,150 units Actual labor costs Actual variable overhead 6,100 hours at $40.90 per hour $61,500 Required: Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. 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 r select either option.) Direct materials: Price variance Efficiency variance Direct materials cost variance Direct labor. Price variance Efficiency variance Direct labor cost variance Variable overhead: Price variance Efficiency variance Variable overhead cost variance
Delta Products prepares its budgets on the basis of standard costs. A responsibility report is prepared monthly showing the differences between master budget and actual results. Variances are analyzed and reported separately. There are no materials inventories. The following information relates to the current period: Standard costs (per unit of output) Direct materials, 6 gallons $4.00 per gallon Direct labor, 5.00 hours $20.00 per hour $ 24 100 Factory overhead Variable (25% of direct labor cost) Total standard cost per unit 25 $ 149 Actual costs and activities for the month follow: Materials used Output 15,570 gallons at $1.89 per gallon 2,150 units Actual labor costs Actual variable overhead 6,100 hours at $40.90 per hour $61,500 Required: Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. 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 r select either option.) Direct materials: Price variance Efficiency variance Direct materials cost variance Direct labor. Price variance Efficiency variance Direct labor cost variance Variable overhead: Price variance Efficiency variance Variable overhead cost variance
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 16E: Refer to the data in Exercise 9.15. Required: 1. Compute overhead variances using a two-variance...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning