Ironwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some of its cost accounting records. Ironwood has managed to reconstruct portions of its standard cost system database but is still missing a few pieces of information. See attached image Required: Use the information in the table to determine the unknown amounts. You may assume that Ironwood does not keep any raw materials on hand. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ironwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some of its cost accounting records. Ironwood has managed to reconstruct portions of its standard cost system database but is still missing a few pieces of information.

See attached image

Required:
Use the information in the table to determine the unknown amounts. You may assume that Ironwood does not keep any raw materials on hand. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

Standard amount per pan produced
Standard price
Actual amount used per pan produced
Actual price
Actual number of pans produced and sold
Direct materials price variance
Direct materials quantity variance
Direct materials spending variance
Direct labor rate variance
Direct labor efficiency variance
Direct labor spending variance
$
$
Direct Materials
2.5 lb.
4.20 per lb.
2.4 lb.
4.10 per lb.
2,500 pans
Direct Labor
1.10 hr.
$ 16.00 per hr.
1.20 hr.
$15.50 per hr.
2,500 pans
Transcribed Image Text:Standard amount per pan produced Standard price Actual amount used per pan produced Actual price Actual number of pans produced and sold Direct materials price variance Direct materials quantity variance Direct materials spending variance Direct labor rate variance Direct labor efficiency variance Direct labor spending variance $ $ Direct Materials 2.5 lb. 4.20 per lb. 2.4 lb. 4.10 per lb. 2,500 pans Direct Labor 1.10 hr. $ 16.00 per hr. 1.20 hr. $15.50 per hr. 2,500 pans
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