Quantity 9,900 Revenue $ 1,615,000 Variable manufacturing cost 947,925 Variable Selling, General and Administrative cost 99,800 Contribution margin $ 567,275 Fixed manufacturing cost 237,600 Fixed Selling, General and Administrative cost 122,000 Operating profit $ 207,675 The following operating income statement shows the actual results for July: Harlow Parts Superior Plant Operating Results (For July) Quantity (units) 11,300 Revenue $ 1,748,800 Variable manufacturing cost 1,157,572 Variable Selling, General and Administrative cost 112,840 Contribution margin $ 478,388 Fixed manufacturing cost 244,080 Fixed Selling, General and Administrative cost 168,000 Operating profit $ 66,308 Variable overhead is applied on the basis of machine-hours. The standard cost sheet follows: Standard production costs Direct materials 5.00 kilo grams @ $ 6.95 $ 34.750 Direct labor 0.50 direct labor-hours @ 39.50 19.750 Variable overhead 0.75 machine-hours @ 55.00 41.250 Fixed overhead 0.50 direct labor-hours @ 48.00 24.000 Total unit cost $ 119.750 The actual resource usage for July per unit of output follows: Actual production costs Direct materials 6.20 kilo grams @ $ 5.80 $ 35.96 Direct labor 0.48 direct labor-hours @ 51.00 24.48 Variable overhead 0.70 machine-hours @ 60.00 42.00 Fixed overhead 0.48 direct labor-hours @ 45.00 21.60 Total unit cost $ 124.04 Required: Prepare a manufacturing cost variance analysis for the Superior Plant for July. Note: Do not round intermediate calculations and Round your answers to the nearest whole dollar amount. 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.
Quantity 9,900 Revenue $ 1,615,000 Variable manufacturing cost 947,925 Variable Selling, General and Administrative cost 99,800 Contribution margin $ 567,275 Fixed manufacturing cost 237,600 Fixed Selling, General and Administrative cost 122,000 Operating profit $ 207,675 The following operating income statement shows the actual results for July: Harlow Parts Superior Plant Operating Results (For July) Quantity (units) 11,300 Revenue $ 1,748,800 Variable manufacturing cost 1,157,572 Variable Selling, General and Administrative cost 112,840 Contribution margin $ 478,388 Fixed manufacturing cost 244,080 Fixed Selling, General and Administrative cost 168,000 Operating profit $ 66,308 Variable overhead is applied on the basis of machine-hours. The standard cost sheet follows: Standard production costs Direct materials 5.00 kilo grams @ $ 6.95 $ 34.750 Direct labor 0.50 direct labor-hours @ 39.50 19.750 Variable overhead 0.75 machine-hours @ 55.00 41.250 Fixed overhead 0.50 direct labor-hours @ 48.00 24.000 Total unit cost $ 119.750 The actual resource usage for July per unit of output follows: Actual production costs Direct materials 6.20 kilo grams @ $ 5.80 $ 35.96 Direct labor 0.48 direct labor-hours @ 51.00 24.48 Variable overhead 0.70 machine-hours @ 60.00 42.00 Fixed overhead 0.48 direct labor-hours @ 45.00 21.60 Total unit cost $ 124.04 Required: Prepare a manufacturing cost variance analysis for the Superior Plant for July. Note: Do not round intermediate calculations and Round your answers to the nearest whole dollar amount. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Quantity | 9,900 |
---|---|
Revenue | $ 1,615,000 |
Variable |
947,925 |
Variable Selling, General and Administrative cost | 99,800 |
Contribution margin | $ 567,275 |
Fixed manufacturing cost | 237,600 |
Fixed Selling, General and Administrative cost | 122,000 |
Operating profit | $ 207,675 |
The following operating income statement shows the actual results for July:
Harlow Parts | |
Superior Plant | |
Operating Results | |
(For July) | |
Quantity (units) | 11,300 |
---|---|
Revenue | $ 1,748,800 |
Variable manufacturing cost | 1,157,572 |
Variable Selling, General and Administrative cost | 112,840 |
Contribution margin | $ 478,388 |
Fixed manufacturing cost | 244,080 |
Fixed Selling, General and Administrative cost | 168,000 |
Operating profit | $ 66,308 |
Variable
Standard production costs | ||||
Direct materials | 5.00 | kilo grams | @ $ 6.95 | $ 34.750 |
---|---|---|---|---|
Direct labor | 0.50 | direct labor-hours | @ 39.50 | 19.750 |
Variable overhead | 0.75 | machine-hours | @ 55.00 | 41.250 |
Fixed overhead | 0.50 | direct labor-hours | @ 48.00 | 24.000 |
Total unit cost | $ 119.750 |
The actual resource usage for July per unit of output follows:
Actual production costs | ||||
Direct materials | 6.20 | kilo grams | @ $ 5.80 | $ 35.96 |
---|---|---|---|---|
Direct labor | 0.48 | direct labor-hours | @ 51.00 | 24.48 |
Variable overhead | 0.70 | machine-hours | @ 60.00 | 42.00 |
Fixed overhead | 0.48 | direct labor-hours | @ 45.00 | 21.60 |
Total unit cost | $ 124.04 |
Required:
Prepare a manufacturing cost
Note: Do not round intermediate calculations and Round your answers to the nearest whole dollar amount. 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.
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