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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.

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.

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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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 $ 6,060 F 4,434 U $ 15,636 U $ 31,180 F Price Variance $ K4 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. $ 7,448 U $ 10,752 F $ 11,650 F 0.75 pounds at $7.60 per pound 1.25 hours at $25.60 per hour $ 20.80 $ 415,920 17,330 10,100 pounds at $7.00 per pound 14,780 hours at $25.90 per hour $ 323,060 $ 384,740 12,160 units K4 Production Volume Variance U $ Price Variance 4,254 U $ 49,016 U $ 41,316 F $ 2,560 F X7 $ 2,460 F $ 16,800 U 1 pound at $8.20 per pound 1.50 hours at $30 per hour. $ 22.60 $493,080 23,480 U Efficiency Variance X7 14,180 pounds at $8.50 per pound 22,280 hours at $32.20 per hour. $ 462,212 $ 490,520 14,480 units Production Volume Variance U
Transcribed Image Text: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 $ 6,060 F 4,434 U $ 15,636 U $ 31,180 F Price Variance $ K4 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. $ 7,448 U $ 10,752 F $ 11,650 F 0.75 pounds at $7.60 per pound 1.25 hours at $25.60 per hour $ 20.80 $ 415,920 17,330 10,100 pounds at $7.00 per pound 14,780 hours at $25.90 per hour $ 323,060 $ 384,740 12,160 units K4 Production Volume Variance U $ Price Variance 4,254 U $ 49,016 U $ 41,316 F $ 2,560 F X7 $ 2,460 F $ 16,800 U 1 pound at $8.20 per pound 1.50 hours at $30 per hour. $ 22.60 $493,080 23,480 U Efficiency Variance X7 14,180 pounds at $8.50 per pound 22,280 hours at $32.20 per hour. $ 462,212 $ 490,520 14,480 units Production Volume Variance U
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