Price per Quantity Standard per unit quantity Direct Material (wood pulp) 1.5 lbs $0.50 $0.75 Direct labor 0.5 LH $18.00 $9.00 Variable manufacturing overhead** 2 MH* $1.00 $2.00 Total cost per unit *LH labor hours; MH = machine hours **variable overhead is applied based on machine hours Actual manufacturing data Actual production 6,000 units $11.75 8,900 lbs of material costing $4,895 was purchased and used 3,200 direct labor hours were worked for a total cost of $57,920 11,800 machine hours were logged and total variable overhead was $14,750 What is the total direct labor variance? $52,520U $3,920F $52,520F $3,920U

Price per Quantity Standard per unit quantity Direct Material (wood pulp) 1.5 lbs $0.50 $0.75 Direct labor 0.5 LH $18.00 $9.00 Variable manufacturing overhead** 2 MH* $1.00 $2.00 Total cost per unit *LH labor hours; MH = machine hours **variable overhead is applied based on machine hours Actual manufacturing data Actual production 6,000 units $11.75 8,900 lbs of material costing $4,895 was purchased and used 3,200 direct labor hours were worked for a total cost of $57,920 11,800 machine hours were logged and total variable overhead was $14,750 What is the total direct labor variance? $52,520U $3,920F $52,520F $3,920U

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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S Direct materials (cork board) Direct labor Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Price (Rate) $ 2.30 per sq. ft. $10.00 per hr. Standard Unit Cost Standard Quantity 3.00 sq. ft. 1 hrs. $ 6.90 10.00 Variable manufacturing overhead. (based on direct labor hours) Fixed manufacturing overhead ($58,000+145,000 units) 1 hrs. $ 0.55 per hr. 0.55 0.40 Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard used Cost of corkboard used Number of labor hours worked Direct labor cost 125,000 390,000 $ 936,000 135,000 $1,228,500 Variable overhead cost Fixed overhead cost $ 71,000 $ 53,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. 2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye. 3. Calculate the variable overhead rate, efficiency, and total spending variances for…
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Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $215,160 Machine hours Assembly 189,550 Direct labor hours Inspecting 30,520 Number of inspections Setup 39,730 Number of setups Materials handling 36,960 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,180 4,600 9,780 Direct labor hours 4,460 6,690 11,150 Number of inspections 1,660 520 2,180 Number of setups 230 60 290 Number of loads 700 180 880 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the…
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Standards: 3 yards of cloth per unit at $1.15 per yard 2 direct labor hours per unit at $10.75 per hour Overhead allocated at $5.00 per direct labor hour Actual: 2,300 yards of cloth were purchased at $1.20 per yard Employees worked 1,700 hours and were paid $10.25 per hour Actual variable overhead was $1,600 Actual fixed overhead was $6,700 Direct materials cost variance $115 U Direct materials efficiency variance 805 F Direct labor cost variance 850 F Direct labor efficiency variance 3,225 F Variable overhead cost variance 1,600 U Variable overhead efficiency variance 1,600 F Fixed overhead cost variance 700 U Fixed overhead volume variance 2,400 F Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit
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