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Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. 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. Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance Production Volume Variance Price Variance X7 Efficiency Variance Production Volume Variance

Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. 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. Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance Production Volume Variance Price Variance X7 Efficiency Variance Production Volume Variance

FINANCIAL ACCOUNTING
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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Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials. Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results. Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual). Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 0.75 pounds at $6.00 per pound 1.25 hours at $24 per hour $ 19.20 $ 402,408 17,250 9,300 pounds at $5.40 per pound 14,700 hours at $24.30 per hour 291,060 $ $ 376,740 K4 12,000 units. Efficiency Variance Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. 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. Production Volume Variance Price Variance 1 pound at $6.60 per pound 1.5 hours at $30 per hour $ 21.00 $ 477,360 23,400 14,100 pounds at $6.90 per pound. 22,200 hours at $30.60 per hour. $ 454,212 $ 475,200 14,400 units X7 X7 Efficiency Variance Production Volume Variance
Transcribed Image Text:Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials. Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results. Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual). Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 0.75 pounds at $6.00 per pound 1.25 hours at $24 per hour $ 19.20 $ 402,408 17,250 9,300 pounds at $5.40 per pound 14,700 hours at $24.30 per hour 291,060 $ $ 376,740 K4 12,000 units. Efficiency Variance Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. 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. Production Volume Variance Price Variance 1 pound at $6.60 per pound 1.5 hours at $30 per hour $ 21.00 $ 477,360 23,400 14,100 pounds at $6.90 per pound. 22,200 hours at $30.60 per hour. $ 454,212 $ 475,200 14,400 units X7 X7 Efficiency Variance Production Volume Variance
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