Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct laber-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materiais Direct labor Variatie overhead Fised overtwad Price Variance КА K4 0.75 pounds at $7.00 per pound 1.25 hours at $25.00 per hour Efficiency Variance $ 20.20 $ 415,200 17,300 9,800 pounds at $6.40 per pound 14,750 hours at $25.30 per hour $ 311,000 $ 381,740 12,100 units 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. Production Volume Variance 1 pound at $7.60 per pound 1.50 hours at $30 per hour. $22.00 $492,450 23,450 Price Variance 14,158 pounds at $7.90 per pound 22,250 hours at $31.60 per hour $ 459,212 $ 490,040 14,450 units Production Volume Variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Problem 16-75 (Algo) Comprehensive Variance Problem (LO 16-5, 6)
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs.
The following data are for September
Standards
Direct materials
Direct labor
Variable overhead (per direct labor-hour)
Fixed overhead (per month)
Expected activity (direct laber-hours)
Actual results
Direct material (purchased and used)
Direct labor
Variable overhead
Fixed overhead
Units produced (actual)
Direct materiais
Direct labor
Variatie overhead
Fised overhead
Price Variance
КА
K4
8.75 pounds at $7.00 per pound
1.25 hours at $25.00 per hour
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.
Efficiency Variance
$ 20.20
$ 415,200
17,300
9,880 pounds at $6.40 per pound
14,750 hours at $25.30 per hour
$ 311,060
5
381,740
12,100 units
Production Volume
Variance
X7
1 pound at $7.60 per pound
1.50 hours at $30 per hour
$ 22.00
$ 492,450
23,450
Price Variance
14,158 pounds at $7.90 per pound
22,250 hours at $31.60 per hour
$ 459,212
$ 490,040
14,450 units
Efficiency Variance
Production Volume
Variance
Transcribed Image Text:Problem 16-75 (Algo) Comprehensive Variance Problem (LO 16-5, 6) Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct laber-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materiais Direct labor Variatie overhead Fised overhead Price Variance КА K4 8.75 pounds at $7.00 per pound 1.25 hours at $25.00 per hour 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. Efficiency Variance $ 20.20 $ 415,200 17,300 9,880 pounds at $6.40 per pound 14,750 hours at $25.30 per hour $ 311,060 5 381,740 12,100 units Production Volume Variance X7 1 pound at $7.60 per pound 1.50 hours at $30 per hour $ 22.00 $ 492,450 23,450 Price Variance 14,158 pounds at $7.90 per pound 22,250 hours at $31.60 per hour $ 459,212 $ 490,040 14,450 units Efficiency Variance Production Volume Variance
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education