k I t nces Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance 0.75 pounds at $8.60 per pound 1.25 hours at $26.60 per hour $ 21.80 $ 417,120 17,380 Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. K4 10,600 pounds at $8.00 per pound 14,830 hours at $26.90 per hour $ 343,060 $ 389,740 12,260 units Production Volume Variance Price Variance X7 1 pound at $9.20 per pound 1.50 hours at $30 per hour $ 23.60 $ 494,130 23,530 X7 14,230 pounds at $9.50 per pound 22,330 hours at $33.20 per hour $ 467,212 $ 491,320 14,530 units Efficiency Variance Production Vorumne Variance
k I t nces Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance 0.75 pounds at $8.60 per pound 1.25 hours at $26.60 per hour $ 21.80 $ 417,120 17,380 Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. K4 10,600 pounds at $8.00 per pound 14,830 hours at $26.90 per hour $ 343,060 $ 389,740 12,260 units Production Volume Variance Price Variance X7 1 pound at $9.20 per pound 1.50 hours at $30 per hour $ 23.60 $ 494,130 23,530 X7 14,230 pounds at $9.50 per pound 22,330 hours at $33.20 per hour $ 467,212 $ 491,320 14,530 units Efficiency Variance Production Vorumne Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:k
I
t
nces
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs.
The following data are for September:
Standards
Direct materials
Direct labor
Variable overhead (per direct labor-hour)
Fixed overhead (per month)
Expected activity (direct labor-hours)
Actual results
Direct material (purchased and used)
Direct labor
Variable overhead
Fixed overhead
Units produced (actual)
Direct materials
Direct labor
Variable overhead
Fixed overhead
Price Variance
K4
Efficiency Variance
0.75 pounds at $8.60 per pound
1.25 hours at $26.60 per hour
$ 21.80
$ 417,120
17,380
Required:
a. Prepare a variance analysis for each variable cost for each product.
b. Prepare a fixed overhead variance analysis for each product.
Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for
favorable, or "U" for unfavorable. If there is no effect, do not select either option.
K4
10,600 pounds at $8.00 per pound
14,830 hours at $26.90 per hour
$ 343,060
$ 389,740
12,260 units
Production Volume
Variance
Price Variance
X7
1 pound at $9.20 per pound
1.50 hours at $30 per hour
$ 23.60
$ 494,130
23,530
X7
14,230 pounds at $9.50 per pound
22,330 hours at $33.20 per hour
$ 467,212
$ 491,320
14,530 units
Efficiency Variance
Production Vorumne
Variance
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