Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Price (Rate) $5 per square feet $ 15 per hour $ 6 per hour Standard Unit Cost $ 75.00 150.00 60.00 80.00 Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 ÷ 300 units) Standard Quantity Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass purchased and used Cost of fiberglass used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Required: 15 square feet 10 hours 10 hours 332 5,120 $ 28,160 3,260 $ 51,182 $ 13,790 $ 25,600 1. Calculate the direct materials price, quantity, and total spending variances for Rip Tide. 2. Calculate the direct labor rate, efficiency, and total spending variances for Rip Tide. 3. Calculate the variable overhead rate, efficiency, and total spending variances for Rip Tide. 4. Calculate the fixed overhead spending (budget) and volume variances for Rip Tide.
Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Price (Rate) $5 per square feet $ 15 per hour $ 6 per hour Standard Unit Cost $ 75.00 150.00 60.00 80.00 Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 ÷ 300 units) Standard Quantity Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass purchased and used Cost of fiberglass used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Required: 15 square feet 10 hours 10 hours 332 5,120 $ 28,160 3,260 $ 51,182 $ 13,790 $ 25,600 1. Calculate the direct materials price, quantity, and total spending variances for Rip Tide. 2. Calculate the direct labor rate, efficiency, and total spending variances for Rip Tide. 3. Calculate the variable overhead rate, efficiency, and total spending variances for Rip Tide. 4. Calculate the fixed overhead spending (budget) and volume variances for Rip Tide.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rip Tide Company manufactures surfboards. Its standard cost information follows:
Standard Price (Rate)
$5 per square feet
$ 15 per hour
$ 6 per hour
Standard
Unit
Cost
$ 75.00
150.00
60.00
80.00
Direct materials (fiberglass)
Direct labor
Variable manufacturing overhead (based on direct
labor hours)
Fixed manufacturing overhead ($24,000 ÷ 300 units)
Standard Quantity
Rip Tide has the following actual results for the month of June:
Number of units produced and sold
Number of square feet of fiberglass purchased and used
Cost of fiberglass used
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
Required:
15 square feet
10 hours
10 hours
332
5,120
$ 28,160
3,260
$ 51,182
$ 13,790
$ 25,600
1. Calculate the direct materials price, quantity, and total spending variances for Rip Tide.
2. Calculate the direct labor rate, efficiency, and total spending variances for Rip Tide.
3. Calculate the variable overhead rate, efficiency, and total spending variances for Rip Tide.
4. Calculate the fixed overhead spending (budget) and volume variances for Rip Tide.
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