**Problem 10-47 Part 2**2. Complete the table below that compute the July direct-material and direct-labor variances in the Construction Department and the July direct-labor variances in the Finishing Department. (Refer to Exhibit 10-2, Exhibit 10-3 and Exhibit 10-4 for guidance.)**Complete this question by entering your answers in the tables below.**- **Req 2A**- **Req 2B**- **Req 2C**- **Req 2D**Complete the table below that computes the July direct material purchase price variance in the Construction Department. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "Actual Price" and "Standard Price" to 2 decimal places.)---**Direct-Material Purchase Price Variance**| | **Actual Material Cost** | **Projected Material Cost** ||------------------------|----------------------------------|----------------------------------|| | **Actual Quantity** | **Actual Quantity** || | **x** | **x** || | **Actual Price** | **Standard Price** ||------------------------|----------------------------------|----------------------------------|| **pounds purchased** | 7,900 | 7,900 || | **x** | **x** || **per pound** | $14.50 | || | | **per pound** || | | || | $114,550 | || | | || | | Unfavorable ||------------------------|----------------------------------|----------------------------------|Direct-material purchase price variance---This table represents the calculation of the direct-material purchase price variance for the Construction Department in July. The variance is calculated by comparing the actual and standard prices per pound of a material, both purchased at an actual quantity of 7,900 pounds. The total actual material cost is $114,550, resulting in an unfavorable variance. ### Production and Cost Analysis for Guitar ManufacturingEach finished guitar includes seven pounds of veneered wood. Typically, one pound of wood is wasted per guitar during production. The veneered wood is priced at $14 per pound. Other parts like bridges and strings have a cost of $17 per guitar. The labor standards are set for two key departments:- **Construction Department**: 5 hours of direct labor at $20/hour- **Finishing Department**: 3 hours of direct labor at $17/hour#### July Production Overview1. No beginning or ending work-in-process inventories were reported.2. There was no beginning finished-goods inventory.3. 690 guitars were produced; 490 guitars were sold at $495 each.4. 7,900 pounds of veneered wood were bought at $14.50 per pound.5. 6,400 pounds of veneered wood were used.6. Enough parts were acquired to finish 790 guitars at a cost of $9,190.7. The Construction Department utilized 3,200 direct-labor hours with a total cost of $60,800.8. The Finishing Department utilized 2,150 direct-labor hours with a total cost of $38,700.9. No direct-material variances occurred in the Finishing Department.#### Problem 10-47 Part 22. The task is to compute the direct-material and direct-labor variances for July in both departments. Consult the provided exhibits for guidance.

Variance is the difference between the standard cost and the actual cost of material prices, labor prices, and overhead. Its outcome may be favorable or unfavorable.The presentation of material price and quantity variance is as follows- Excel snip

Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the guitars has a standard price of $14 per pound. The other parts needed to complete each guitar, such as the bridge and strings, cost $17 per guitar. The labor standards for Springsteem two production departments are as follows: Construction Department: 5 hours of direct labor at $20 per hour Finishing Department: 3 hours of direct labor at $17 per hour The following pertains to the month of July. 1. There were no beginning or ending work-in-process inventories in either production department. 2. There was no beginning finished-goods inventory. 3. Actual production was 690 guitars, and 490 guitars were sold on account for $495 each. 4. The company purchased 7,900 pounds of veneered wood at a price of $14.50 per pound. 5. Actual usage of veneered wood was 6,400 pounds of the wood purchased during July. 6. Enough parts (bridges and strings) to finish 790 guitars were purchased at a cost of $9,190. 7. The Construction Department used 3,200 direct-labor hours. The total direct-labor cost in the Construction Departmen was $60,800. 8. The Finishing Department used 2,150 direct-labor hours. The total direct-labor cost in that department was $38,700. 9. There were no direct-material variances in the Finishing Department. oblem 10-47 Part 2 Complete the table below that compute the July direct-material and direct-labor variances in the Construction Department a y direct-labor variances in the Finishing Department. (Refer to Exhibit 10-2, Exhibit 10-3 and Exhibit 10-4 for guidance.)

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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