Sheridan Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.30 $2 11.500 11,000 $152,440 $147,440 14,800 15,200 $230,572 $218,880 43,500 $69,600 $3.20 $1.60 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $458,000. Selling and administrative expenses were $41,200. Assume that the amount of raw materials purchased equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) (1) Total materials variance $ Unfavorable Materials price variance $ Unfavorable Materials quantity variance $ Unfavorable (2) Total labor variance $ Unfavorable Labor price variance $ Unfavorable Labor quantity variance $ Favorable
Sheridan Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.30 $2 11.500 11,000 $152,440 $147,440 14,800 15,200 $230,572 $218,880 43,500 $69,600 $3.20 $1.60 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $458,000. Selling and administrative expenses were $41,200. Assume that the amount of raw materials purchased equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) (1) Total materials variance $ Unfavorable Materials price variance $ Unfavorable Materials quantity variance $ Unfavorable (2) Total labor variance $ Unfavorable Labor price variance $ Unfavorable Labor quantity variance $ Favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheridan Corporation accumulates the following data relative to jobs started and finished during the month of June 2022.
Costs and Production Data
Raw materials unit cost
Raw materials units
Direct labor payroll
Direct labor hours
Manufacturing overhead incurred
Manufacturing overhead applied
Machine hours expected to be used at normal capacity
Budgeted fixed overhead for June
Variable overhead rate per machine hour
Fixed overhead rate per machine hour
Actual
Standard
$2.30
$2
11.500
11,000
$152,440
$147,440
14,800
15,200
$230,572
$218,880
43,500
$69,600
$3.20
$1.60
Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The
jobs were sold for $458,000. Selling and administrative expenses were $41,200. Assume that the amount of raw materials purchased
equaled the amount used.
(a)
Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and
final answers to O decimal places, e.g. 52.)
(1)
Total materials variance
$
Unfavorable
Materials price variance
$
Unfavorable
Materials quantity variance
$
Unfavorable
(2)
Total labor variance
$
Unfavorable
Labor price variance
$
Unfavorable
Labor quantity variance
$
Favorable
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