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Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Direct materials (purchases) Direct materials (usage) Direct manufacturing labour Actual input 99,500 97,500 4,900 Direct materials Direct manufacturing labour x Budgeted price x S S 5.10 5.10 31.00 Next, determine the formula and calculate the costs for the flexible budget. Budgeted price 5.10 31.00 Cost $ 507,450 $ 497,250 $ 151,900 x Budgeted input for actual output = Flexible budget cost X

Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Direct materials (purchases) Direct materials (usage) Direct manufacturing labour Actual input 99,500 97,500 4,900 Direct materials Direct manufacturing labour x Budgeted price x S S 5.10 5.10 31.00 Next, determine the formula and calculate the costs for the flexible budget. Budgeted price 5.10 31.00 Cost $ 507,450 $ 497,250 $ 151,900 x Budgeted input for actual output = Flexible budget cost X

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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The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour: (Click the icon to view the standards.) The number of finished units budgeted for January was 9,950; 9,900 units were actually produced. (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 99,500 kg, at a total cost of $527,350. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Required Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Direct materials (purchases) Direct materials (usage) Direct manufacturing labour Direct materials Direct manufacturing labour Standards Actual input 99,500 97,500 4,900 Next, determine the formula and calculate the costs for the flexible budget. Budgeted price 5.10 31.00 x Budgeted price x S x S x S Actual Data Direct materials: 10 kg. at $5.10 per kg. Direct manufacturing labour: 0.5 hour at $31 per hour 5.10 5.10 31.00 x Budgeted input for actual output = Flexible budget cost X X Cost $ 507,450 = $ 497,250 = $ 151,900 $ 51.00 15.50 Actual results in January were as follows: Direct materials: 97,500 kg. used Direct manufacturing labour: 4,900 hours $ 160,475 X X = =
Transcribed Image Text:The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour: (Click the icon to view the standards.) The number of finished units budgeted for January was 9,950; 9,900 units were actually produced. (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 99,500 kg, at a total cost of $527,350. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Required Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Direct materials (purchases) Direct materials (usage) Direct manufacturing labour Direct materials Direct manufacturing labour Standards Actual input 99,500 97,500 4,900 Next, determine the formula and calculate the costs for the flexible budget. Budgeted price 5.10 31.00 x Budgeted price x S x S x S Actual Data Direct materials: 10 kg. at $5.10 per kg. Direct manufacturing labour: 0.5 hour at $31 per hour 5.10 5.10 31.00 x Budgeted input for actual output = Flexible budget cost X X Cost $ 507,450 = $ 497,250 = $ 151,900 $ 51.00 15.50 Actual results in January were as follows: Direct materials: 97,500 kg. used Direct manufacturing labour: 4,900 hours $ 160,475 X X = =
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