Please do not give solution in image format thanku e. Compute the price and usage variances for direct materials and direct labor.f. Compute the fixed cost spending and volume variances.Complete this question by entering your answers in the tabs below.Req A and B Req C and DFixed MOH CostCompute the fixed cost spending and volume variances. (Indicate the effect of each variance by selecting "F" f"U" for unfavorable, and "None" for no effect (i.e., zero variance).)Spending varianceVolume varianceReq EReq A and B Req C and DVariancee. Compute the price and usage variances for direct materials and direct labor.f. Compute the fixed cost spending and volume variances.CostDirect materials:Price varianceUsage varianceDirect labor:Price varianceUsage varianceComplete this question by entering your answers in the tabs below.NoneReq EReq FVarianceCompute the price and usage variances for direct materials and direct labor. (Indicate the effect of each varian"F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)UFUReq F Benson Company manufactures molded candles that are finished by hand. The company developed thefollowing standards for a new line of drip candles.Amount of direct materials per candlePrice of direct materials per poundQuantity of labor per unitPrice of direct labor per hourTotal budgeted fixed overhead1.90 pounds$ 0.601.50 hours$ 7.70/hour$ 220,400During Year 2, Benson planned to produce 38,000 drip candles. Production lagged behind expectations,and actually produced only 31,000 drip candles. At year-end, direct materials purchased and usedamounted to 60,200 pounds at a unit price of $0.55 per pound. Direct labor costs were actually $7.30 perhour and 49,000 actual hours were worked to produce the drip candles. Overhead for the year actuallyamounted to $192,200. erhead is applied to products using a predetermined overhead rateased onestimated units.

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Description: Please do not give solution in image format thanku e. Compute the price and usage variances for direct materials and direct labor.f. Compute the fixed cost spending and volume variances.Complete this question by entering your answers in the tabs belo

The variance is the difference between the actual data and standard output of the production.

Answered: e. Compute the price and usage…

Business

Accounting

e. Compute the price and usage variances for direct materials and direct labor. f. Compute the fixed cost spending and volume variances.

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 20E: Jameson Company produces paper towels. The company has established the following direct materials...

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Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
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Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
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