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Hörman Company produced book bags in June, and actual amounts were as follows (Click the icon to view the actual amounts.) Forman's standards were as follows: (Click the icon to view the standards.) equirement 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Requirements 1. 2. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Compute the cost and volume variances for fixed overhead. elect the formulas to calculate direct materials cost and efficiency variances, then enter the variance amounts and the total. (Abbreviations used: AC = actual cost; AQ= actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label vorable (F) or unfavorable (U). Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Formula irect materials cost variance irect materials efficiency variance = Total direct materials variance Data table Variance Data table Direct materials (cloth) 39,100 yards @ $2.10 per yard Direct labor 2,500 hours @$9.00 per hour Variable overhead $5,500 39,800 Direct materials (cloth) 3 yard(s) per book bag @ $2.10 per yard Direct labor Variable overhead Fixed overhead 0.30 direct labor hours per book bag @ $9.60 per direct labor hour 0.30 direct labor hours per book bag @ $2.50 per direct labor hour $37,800 (0.30 direct labor hours per book bag @ $9.00 per direct labor hour based on expected production of 14,000 book bags) Fixed overhead Print Done Print Done - X

Hörman Company produced book bags in June, and actual amounts were as follows (Click the icon to view the actual amounts.) Forman's standards were as follows: (Click the icon to view the standards.) equirement 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Requirements 1. 2. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Compute the cost and volume variances for fixed overhead. elect the formulas to calculate direct materials cost and efficiency variances, then enter the variance amounts and the total. (Abbreviations used: AC = actual cost; AQ= actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label vorable (F) or unfavorable (U). Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Formula irect materials cost variance irect materials efficiency variance = Total direct materials variance Data table Variance Data table Direct materials (cloth) 39,100 yards @ $2.10 per yard Direct labor 2,500 hours @$9.00 per hour Variable overhead $5,500 39,800 Direct materials (cloth) 3 yard(s) per book bag @ $2.10 per yard Direct labor Variable overhead Fixed overhead 0.30 direct labor hours per book bag @ $9.60 per direct labor hour 0.30 direct labor hours per book bag @ $2.50 per direct labor hour $37,800 (0.30 direct labor hours per book bag @ $9.00 per direct labor hour based on expected production of 14,000 book bags) Fixed overhead Print Done Print Done - X

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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Gorman Company produced 13,000 book bags in June, and actual amounts were as follows: (Click the icon to view the actual amounts.) Gorman's standards were as follows: (Click the icon to view the standards.) Requirement 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Requirements 1. 2. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Compute the cost and volume variances for fixed overhead. Select the formulas to calculate direct materials cost and efficiency variances, then enter the variance amounts and the total. (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label ea avorable (F) or unfavorable (U). Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Direct materials cost variance Direct materials efficiency variance = Data table Formula Total direct materials variance Variance Direct materials (cloth) 3 yard(s) per book bag @ $2.10 per yard Direct labor Variable overhead Fixed overhead 0.30 direct labor hours per book bag @ $9.60 per direct labor hour 0.30 direct labor hours per book bag @ $2.50 per direct labor hour $37,800 (0.30 direct labor hours per book bag @ $9.00 per direct labor hour based on expected production of 14,000 book bags) Print Done Data table Direct materials (cloth) 39,100 yards @ $2.10 per yard Direct labor 2,500 hours @ $9.00 per hour Variable overhead $5,500 Fixed overhead 39,800 Print Done - X
Transcribed Image Text:Gorman Company produced 13,000 book bags in June, and actual amounts were as follows: (Click the icon to view the actual amounts.) Gorman's standards were as follows: (Click the icon to view the standards.) Requirement 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Requirements 1. 2. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Compute the cost and volume variances for fixed overhead. Select the formulas to calculate direct materials cost and efficiency variances, then enter the variance amounts and the total. (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label ea avorable (F) or unfavorable (U). Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Direct materials cost variance Direct materials efficiency variance = Data table Formula Total direct materials variance Variance Direct materials (cloth) 3 yard(s) per book bag @ $2.10 per yard Direct labor Variable overhead Fixed overhead 0.30 direct labor hours per book bag @ $9.60 per direct labor hour 0.30 direct labor hours per book bag @ $2.50 per direct labor hour $37,800 (0.30 direct labor hours per book bag @ $9.00 per direct labor hour based on expected production of 14,000 book bags) Print Done Data table Direct materials (cloth) 39,100 yards @ $2.10 per yard Direct labor 2,500 hours @ $9.00 per hour Variable overhead $5,500 Fixed overhead 39,800 Print Done - X
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