Direct materialsDirect laborVariable manufacturing overhead (basedon direct labor-hours)Direct materials (8,100 yards)Direct laborVariable manufacturing overheadTotal$36,360$ 7,070$ 3,030During August, the factory worked only 1,080 direct labor-hours and produced 2,700 sets of covers. The following actual costs wererecorded during the month:Per Set ofCovers$18.003.50Total$ 46,980$ 9,990$ 4,5901. Materials price variance1. Materials quantity variance2. Labor rate variance1.50$23.002. Labor efficiency variance3. Variable overhead rate variance3. Variable overhead efficiency varianceAt standard, each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used inproduction.Per Set ofCovers$ 17.403.701.70$22.80Required:1. Compute the materials price and quantity variances for August.2. Compute the labor rate and efficiency variances for August.3. Compute the variable overhead rate and efficiency variances for August.(Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)FFF

Name: Direct materialsDirect laborVariable manufacturing overhead (basedon
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Description: Direct materialsDirect laborVariable manufacturing overhead (basedon direct labor-hours)Direct materials (8,100 yards)Direct laborVariable manufacturing overheadTotal$36,360$ 7,070$ 3,030During August, the factory worked only 1,080 direct labor-hour

The materials variances compare the actual and standard cost of materials. The labor variances…

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Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (8,100 yards) Direct labor Variable manufacturing overhead Total $36,360 $ 7,070 $ 3,030 Total $ 46,980 $ 9,990 $4,590 Set of Covers During August, the factory worked only 1,080 direct labor-hours and produced 2,700 sets of covers. The following actual costs were recorded during the month: 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance $ 18.00 3.50 1.50 $23.00 Per Set of Covers $17.40 3.70 1.70 $22.80 At standard, each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) F U U F U

Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (8,100 yards) Direct labor Variable manufacturing overhead Total $36,360 $ 7,070 $ 3,030 Total $ 46,980 $ 9,990 $4,590 Set of Covers During August, the factory worked only 1,080 direct labor-hours and produced 2,700 sets of covers. The following actual costs were recorded during the month: 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance $ 18.00 3.50 1.50 $23.00 Per Set of Covers $17.40 3.70 1.70 $22.80 At standard, each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) F U U F U

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

Direct materials
Direct labor
Variable manufacturing overhead (based
on direct labor-hours)
Direct materials (8,100 yards)
Direct labor
Variable manufacturing overhead
Total
$36,360
$ 7,070
$ 3,030
During August, the factory worked only 1,080 direct labor-hours and produced 2,700 sets of covers. The following actual costs were
recorded during the month:
Per Set of
Covers
$18.00
3.50
Total
$ 46,980
$ 9,990
$ 4,590
1. Materials price variance
1. Materials quantity variance
2. Labor rate variance
1.50
$23.00
2. Labor efficiency variance
3. Variable overhead rate variance
3. Variable overhead efficiency variance
At standard, each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used in
production.
Per Set of
Covers
$ 17.40
3.70
1.70
$22.80
Required:
1. Compute the materials price and quantity variances for August.
2. Compute the labor rate and efficiency variances for August.
3. Compute the variable overhead rate and efficiency variances for August.
(Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable,
and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
F
F
F

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