Subject: accounting Required:Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no efzero variance).Direct MaterialDirect LaborVariable OverheadFixed OverheadTotal Manufacturing CostsActual Costs545 units$$18,70029,40011,45014,70074,250SpendingVarianceFlexibleBudget545 unitsVolumeVarianceMaster Budget200 units$$17,20025,20011,20012,60066,200

Name: Subject: accounting Required:Gleason Guitars produces acoustic guitars
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Description: Subject: accounting Required:Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None"

The spending variance is the difference between actual results and flexible budget data. The…

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Accounting

Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no zero variance). Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 545 units $ $ 18,700 29,400 11,450 14,700 74,250 Spending Variance Flexible Budget 545 units Volume Variance Master Budget 200 units $ 17,200 25,200 11,200 12,600 66,200

Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no zero variance). Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 545 units $ $ 18,700 29,400 11,450 14,700 74,250 Spending Variance Flexible Budget 545 units Volume Variance Master Budget 200 units $ 17,200 25,200 11,200 12,600 66,200

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3PB: Direct materials, direct labor, and factory overhead cost variance analysis Road Gripper Tire Co....

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Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Instructions Determine (A) the standard cost per unit for direct materials and direct labor; (B) the price variance, quantity variance, and total direct materials cost variance; and (C) the rate variance, time variance, and total direct labor cost variance.
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 40,000 units of product were as follows: Each unit requires 0.3 hour of direct labor. Instructions Determine (A) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (B) the direct labor rate variance, direct labor time variance, and total direct labor cost variance; and (C) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.
Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
The standard specifications for an electric motor manufactured by XYZ Electric Co. follow: Factory overhead rates are based on a normal 70% capacity and use the following flexible budget: The actual production was 2,500 motors, and factory overhead costs totaled $29,750. Required: Calculate the factory overhead variances using the two-variance method and the diagram format.
ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
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Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost system and prepares budgets that call for 500 of these batches per period. Budgeted fixed overhead is $60,000 per period. The standard costs per batch follow: During the period, 503 batches were manufactured, and the following costs were incurred: Required: Calculate the variances for materials, labor, and overhead. For overhead, use the two-variance method. (Hint: Please use the information given about the budgeted fixed overhead to compute the variable overhead rate.)
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