Requirements:Compute4.Direct-labor quantity (efficiency) variance5.Variable manufacturing overhead rate variance,6.Variable manufacturing overhead efficiency variance. Question BThe following information has been gathered from KLP. cORmanx's static budget for the mostrecent months.• Direct materials per unit of product 5 pounds *$1.50per pound.• Direct labour per unit of product 45 hour*$20 per hour.Variable manufacturing overhead $15 per direct labour hourThe actual activity of the most recent month:10,000 pounds direct material purchased at cost $17,000.9,504 pounds of direct material used to produce 1728 Units of product.864 total direct labour hours were used and total payment was $18,144Variable manufacturing overhead costs $13,824.

Variance: It is the difference between the budgeted and actual amount spent on material and labor.…

Question B The following information has been gathered from KLP GOrmanx's static budget for the most recent months. • Direct materials per unit of product 5 pounds "$1.50per pound. • Direct Jabour per unit of product 45 hour*$20 per hour. Variable manufacturing overhead $15 per direct labour hour The actual activity of the most recent month: 10,000 pounds direct material purchased at cost $17,000. • 9,504 pounds of direct material used to produce 1728 Units of product. 864 total direct labour hours were used and total payment was $18,144 Variable manufacturing overhead costs $13,824.

Question B The following information has been gathered from KLP GOrmanx's static budget for the most recent months. • Direct materials per unit of product 5 pounds "$1.50per pound. • Direct Jabour per unit of product 45 hour*$20 per hour. Variable manufacturing overhead $15 per direct labour hour The actual activity of the most recent month: 10,000 pounds direct material purchased at cost $17,000. • 9,504 pounds of direct material used to produce 1728 Units of product. 864 total direct labour hours were used and total payment was $18,144 Variable manufacturing overhead costs $13,824.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

List the direct labor variances, and briefly describe each.
TRUE OR FALSE A production volume variance appears in the variable costing method but not in absorption costing method.
Computing and journalizing standard cost variances McKnight manufactures coffee mugs that it sells to other companies for customizing with their own logos. McKnight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Direct Materials (0.2 lbs. @ $0.25 per Ib.) $ 0.05 Direct Labor (3 minutes @ $0.11 per minute) 0.33 Manufacturing Overhead: Variable (3 minutes @ $0.06 per minute) $ 0.18 Fixed (3 minutes @ $0.15 per minute) 0.45 0.63 Total Cost Per Coffee Mug $ 1.01 Actual cost and production information for July 2020 follow: а. Actual production and sales were 62,500 coffee mugs. b. Actual direct materials usage was 10,000 Ibs. at an actual cost of $0.17 per Ib. Actual direct labor usage of 198,000 minutes at a cost of $25,740. d. Actual overhead cost was $8,500 variable and $32,100 fixed. e. Selling and administrative costs were $110,000. C.
Premium Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using 144,000 square feet of extruded vinyl purchased at $1.15 per square foot. Production required 410 direct labor hours that cost $12.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.20 per square foot. The labor standard was 0.027 direct labor hour per fender, at a standard cost of $11.50 per hour. Read the requirement.
Please do not give solution in image format thanku
1
The variable overhead spending variance has to do with the efficient use of The overhead items. All variable manufacturing costs. All of these answer choices are correct. The activity base.
Required A Required B Calculate the variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs Variances
Under the three-variance method for analyzing factory overhead, whi.ch of the following is used in the computation of the spending variance? efficiency variance volume variance spending variance idle capacity variance
Determine the variances for A, B, and C.
The variance analysis is used Ratio Analysis Standard costing Budgetary control Marginal costing
An example of a performance measure with a long−timehorizon is ________. A. quality of room service B. direct materials efficiency variances C. number of new patents developed D. overhead spending variances