Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard Price Standard Quantity Unit Cost (Rate) 15 sq. ft. $ 5 per sq. ft. $15 per hr. Direct materials (fiberglass) $ 75.00 Direct labor 10 hrs. 150.00 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 + 300 units) 10 hrs. $ 6 per hr. 60.00 80.00 Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass used Cost of fiberglass used 325 5,050 $28,785 3,190 $49,445 Number of labor hours worked Direct labor cost Variable overhead cost $14,490 $25,250 Fixed overhead cost Required: 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.

Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard Price Standard Quantity Unit Cost (Rate) 15 sq. ft. $ 5 per sq. ft. $15 per hr. Direct materials (fiberglass) $ 75.00 Direct labor 10 hrs. 150.00 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 + 300 units) 10 hrs. $ 6 per hr. 60.00 80.00 Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass used Cost of fiberglass used 325 5,050 $28,785 3,190 $49,445 Number of labor hours worked Direct labor cost Variable overhead cost $14,490 $25,250 Fixed overhead cost Required: 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.

Name: Rip Tide Company manufactures surfboards. Its standard cost informati
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Description: Rip Tide Company manufactures surfboards. Its standard cost information follows:StandardStandard PriceStandardQuantity15 sq. ft.(Rate)Unit CostDirect materials (fiberglass)$ 75.00$ 5 per sq. ft.$15 per hr.Direct labor10 hrs.150.00Variable manufactur

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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