Matthew, the production manager, was pleased at the company's income statement results. Actual DL cost was only $65,540, compared to the budgeted $73,600, while actual sales volume came in 200 units below original projections. The company actually used 2,900 DL hours to make the 1,400 units produced and sold. Each unit was budgeted to take 2 DL hours; each DL hour was budgeted at $23.00 per hour. Calculate the company's DL price and DL efficiency variances. (Round intermediate calculations to to 2 decimal places, e.g. 15.25 and find answers to O decimal places, e.g. 5,125.) DL price variance DL efficiency variance $ $ Favorable Unfavorable Neither Favorable nor Unfavorable

Matthew, the production manager, was pleased at the company's income statement results. Actual DL cost was only $65,540, compared to the budgeted $73,600, while actual sales volume came in 200 units below original projections. The company actually used 2,900 DL hours to make the 1,400 units produced and sold. Each unit was budgeted to take 2 DL hours; each DL hour was budgeted at $23.00 per hour. Calculate the company's DL price and DL efficiency variances. (Round intermediate calculations to to 2 decimal places, e.g. 15.25 and find answers to O decimal places, e.g. 5,125.) DL price variance DL efficiency variance $ $ Favorable Unfavorable Neither Favorable nor Unfavorable

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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Alquds Manufacturing company's operating income shows that it was less than planned (budgeted) operating income by $30.000. this difference let management to ask about theireasons to get a feedback. the financial manager tries to Interpret the result by different way based on following data; Actual Data:Sales in units 20000, selling price $55 per unit, DM used 35000 gram at a cost of $310000, DL used 20000 labor hour at a cost of S240000, V.OH cost $250000, F.OH cost $200000. Budgeted Data: Sales in units 21500 units, Selling price per unit $50 per unit, Standard DM required is 2 qram at a coSE of $8 per gram, DL 0,8 hour at a cost of $12.5, V.OH cost is $11.9767 per per labor hour and FOH cost $180,000 for capacity of 20000 labor hours.Compute Spending 7Variances of FOH Cost
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