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Instructions Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time variance, and total direct labor cost variance; and. (c) the variable factory overhead controllable variance, the fixed factory overhead volume variance, and the total factory overhead cost variance.

Instructions Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time variance, and total direct labor cost variance; and. (c) the variable factory overhead controllable variance, the fixed factory overhead volume variance, and the total factory overhead cost variance.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 5BE: Standard cost journal entries Bellingham Company produced 15,000 units that require 2.5 standard...
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OBJ. 3, 4 PR 23-3A Direct materials, direct labor, and factory overhead cost variance Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 40,000 units of product were as follows: Direct Materials Direct Labor Factory Overhead Standard Costs 120,000 lbs. @ $3.20 12,000 hrs. @ $24.40 Actual Costs 118,500 lbs. @ $3.25 11,700 hrs. @ $25.00 Rates per direct labor hour, based on 100% of normal capacity of 15,000 direct labor hours. Variable cost, $8.00 Fixed cost, $10.00 $91,200 variable cost $150,000 fixed cost Each unit requires 0.3 hour of direct labor. Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage. Instructions Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time variance, and total direct labor cost variance; and. (c) the variable factory overhead controllable variance, the fixed factory overhead volume variance, and the total factory overhead cost variance.
Transcribed Image Text:OBJ. 3, 4 PR 23-3A Direct materials, direct labor, and factory overhead cost variance Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 40,000 units of product were as follows: Direct Materials Direct Labor Factory Overhead Standard Costs 120,000 lbs. @ $3.20 12,000 hrs. @ $24.40 Actual Costs 118,500 lbs. @ $3.25 11,700 hrs. @ $25.00 Rates per direct labor hour, based on 100% of normal capacity of 15,000 direct labor hours. Variable cost, $8.00 Fixed cost, $10.00 $91,200 variable cost $150,000 fixed cost Each unit requires 0.3 hour of direct labor. Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage. Instructions Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time variance, and total direct labor cost variance; and. (c) the variable factory overhead controllable variance, the fixed factory overhead volume variance, and the total factory overhead cost variance.
Problem 23-3A Problem 23-3A a. b. C. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance Direct Labor Rate Variance Direct Labor (Time) Efficiency Variance Total Direct Labor Cost Variance Fixed Factory Overhead Volume Variance Normal Capacity at 100% Standard for Amount Produced Productive Capacity not Used Standard Fixed Factory Overhead Cost Rate Factory Overhead Volume Variance Variable Factory Overhead Controllable Variance Actual Variable Factory Overhead Cost Budgeted Variable FOH for 12,000 hours Factory Overhead Controllable Variance Total Factory Overhead Cost Variance HEAD Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong
Transcribed Image Text:Problem 23-3A Problem 23-3A a. b. C. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance Direct Labor Rate Variance Direct Labor (Time) Efficiency Variance Total Direct Labor Cost Variance Fixed Factory Overhead Volume Variance Normal Capacity at 100% Standard for Amount Produced Productive Capacity not Used Standard Fixed Factory Overhead Cost Rate Factory Overhead Volume Variance Variable Factory Overhead Controllable Variance Actual Variable Factory Overhead Cost Budgeted Variable FOH for 12,000 hours Factory Overhead Controllable Variance Total Factory Overhead Cost Variance HEAD Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong Wrong
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