N1.Account The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and maritime industries. The followinginformation is available for the last operating month:• The plant produced and sold 29,348 fixtures for $72 each. Budgeted production was 30,000 fixtures.Standard variable costs per fixture follow:Direct materials: 4 pounds at $4Direct labor: 0.1 hours at $40Variable production overhead: 0.4 machine-hours at $20 per hourTotal variable costs• Fixed production overhead costs:Monthly budget $817,600• Fixed overhead is applied at the rate of $30 per fixture.• Actual production costs:Direct materials purchased and used: 106,900 pounds at $4.39Direct labor: 2,920 hours at $45.25Variable overhead: 12,100 machine-hours at $19.59 per hourFixed overheadRequired:a. Prepare a cost variance analysis for each variable cost for the River Plant.b. Prepare a fixed overhead cost variance analysis.$ 16.004.008.00$28.00Comptetthete$ 469,291132,130237,039874,000c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances areclosed to Cost of Goods Sold at the end of the operating period. Direct materials purchased and used: 106,900 pounds at $4.39Direct labor: 2,920 hours at $45.25Variable overhead: 12,100 machine-hours at $19.59 per hourFixed overheadRequired:a. Prepare a cost variance analysis for each variable cost for the River Plant.b. Prepare a fixed overhead cost variance analysis.c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all varianceclosed to Cost of Goods Sold at the end of the operating period.Complete this question by entering your answers in the tabs below.Required A Required BRequired CPrepare a cost variance analysis for each variable cost for the River Plant.Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do notselect either option.Actual costsActual inputs at standard priceFlexible budgetPrice varianceEfficiency varianceTotal varianceDirect MaterialsUF< Required ADiret LaborU$ 469,291132, 130237,039874,000.UVariable OverheadRequired B >UU

Cost variance analysis is a analysis in which the comparison is done between the actual cost…

nt produced and sold 29,348 fixtures for $72 each. Budgeted production was 30,000 fixtures. d variable costs per fixture follow: materials: 4 pounds at $4 labor: 0.1 hours at $40. e production overhead: 0.4 machine-hours at $20 per hour. variable costs $ 16.00 4.00 8.00 $28.00

nt produced and sold 29,348 fixtures for $72 each. Budgeted production was 30,000 fixtures. d variable costs per fixture follow: materials: 4 pounds at $4 labor: 0.1 hours at $40. e production overhead: 0.4 machine-hours at $20 per hour. variable costs $ 16.00 4.00 8.00 $28.00

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...

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