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m Really Cold Coat Company does not expect there to be any beginning ventories of filler and lining material. At the end of the budget year, I'm oat Company experienced the following actual results: Actual production Filler Liner Women's contr Women's Coats 4,400 Actual Price per Unit $1.90 per lb. 8.20 per yd. Actual Labor Rate $1410 por br Men's Coats 5,800 Actual Quantity Purchased and 48,000 85,100 Actual Labor Hours Used 1875

m Really Cold Coat Company does not expect there to be any beginning ventories of filler and lining material. At the end of the budget year, I'm oat Company experienced the following actual results: Actual production Filler Liner Women's contr Women's Coats 4,400 Actual Price per Unit $1.90 per lb. 8.20 per yd. Actual Labor Rate $1410 por br Men's Coats 5,800 Actual Quantity Purchased and 48,000 85,100 Actual Labor Hours Used 1875

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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PR23 2B

this is a practice problem with two parts

1. a. Direct Materials Variance Price variance: Actual price Standard price Variance Actual quantity Direct materials price variance (favorable) unfavorable Quantity variance: Actual quantity used (lbs.) Standard quantity used (lbs.) Variance (lbs.) Standard price Direct materials quantity variance (favorable) unfavorable Total direct materials cost variance (favorable) unfavorable Total direct materials cost variance: Actual cost Standard cost Total direct materials cost variance (favorable) unfavorable Supporting calculations: Standard quantity used of filler: Coats produced Standard amount per coat (lbs.) Total Standard quantity used of liner: Coats produced Standard amount per coat (yds.) Total Filler Womens Liner Men's Total Total b. Direct Labor Variance Rate variance: Actual rate Standard rate Variance Actual time Direct labor rate variance (favorable) unfavorable Time variance Actual tiime Standard time Variance Standard rate Direct labor time variarce (favorable) unfavcrable Total direct labor cost variance (favorable) unfavorable Total direct labor cost variance: Actual cost Standard cost Total direct labor cost variance (favorable) unfavorable Women's Coats Men's Coats Total
Transcribed Image Text:1. a. Direct Materials Variance Price variance: Actual price Standard price Variance Actual quantity Direct materials price variance (favorable) unfavorable Quantity variance: Actual quantity used (lbs.) Standard quantity used (lbs.) Variance (lbs.) Standard price Direct materials quantity variance (favorable) unfavorable Total direct materials cost variance (favorable) unfavorable Total direct materials cost variance: Actual cost Standard cost Total direct materials cost variance (favorable) unfavorable Supporting calculations: Standard quantity used of filler: Coats produced Standard amount per coat (lbs.) Total Standard quantity used of liner: Coats produced Standard amount per coat (yds.) Total Filler Womens Liner Men's Total Total b. Direct Labor Variance Rate variance: Actual rate Standard rate Variance Actual time Direct labor rate variance (favorable) unfavorable Time variance Actual tiime Standard time Variance Standard rate Direct labor time variarce (favorable) unfavcrable Total direct labor cost variance (favorable) unfavorable Total direct labor cost variance: Actual cost Standard cost Total direct labor cost variance (favorable) unfavorable Women's Coats Men's Coats Total
I'm Really Cold Coat Company makes women's and men's coats. Both products require filler and lining material. The following planning information has been made available: Filler Liner Standard labor time Planned production Standard labor rate Actual production Filler Liner Standard Amount per Unit Women's coats Men's coats Women's Coats 4.0 lb. 7.0 yds. 0.40 hr. Women's Coats 5,000 units $14.00 per hr. Men's Coats 5.2 lb. 9.4 yds. Women's Coats 4,400 Actual Price per Unit $1.90 per lb. 8.20 per yd. Actual Labor Rate I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced the following actual results: $14.10 per hr. 13.30 per hr. 0.50 hr. ® Excel Standard Price per Unit $2.00 per lb. 8.00 per yd. Men's Coats 6,200 units $13.00 per hr. Men's Coats 5,800 Actual Quantity Purchased and Used 48,000 85,100 Actual Labor Hours Used 1,825 2,800
Transcribed Image Text:I'm Really Cold Coat Company makes women's and men's coats. Both products require filler and lining material. The following planning information has been made available: Filler Liner Standard labor time Planned production Standard labor rate Actual production Filler Liner Standard Amount per Unit Women's coats Men's coats Women's Coats 4.0 lb. 7.0 yds. 0.40 hr. Women's Coats 5,000 units $14.00 per hr. Men's Coats 5.2 lb. 9.4 yds. Women's Coats 4,400 Actual Price per Unit $1.90 per lb. 8.20 per yd. Actual Labor Rate I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced the following actual results: $14.10 per hr. 13.30 per hr. 0.50 hr. ® Excel Standard Price per Unit $2.00 per lb. 8.00 per yd. Men's Coats 6,200 units $13.00 per hr. Men's Coats 5,800 Actual Quantity Purchased and Used 48,000 85,100 Actual Labor Hours Used 1,825 2,800
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