Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring aprofessional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of thenew fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solutionare as follows, along with actual information for the month.DMDLVariable-MOHFixed-MOH●●●Standard Quantity per Unit0.5 gallons of solution0.3 DL hoursActual results for January:●2.0 machine hours2.0 machine hours.Show Transcribed TextShow Transcribed Text26,000 gallons were actually produced.Cost of DM purchased was $250,560 for 14,400 gallons of solution.DM used in production was 12,740 gallons.Cost of DL was $133,796 for 8,060 DL hours worked.Variable-MOH cost was $117,390 for 54,600 machine hours used.Fixed-MOH cost was $223,860.Fixed-MOH price variance$$17.00 per gallon$17.00per DL hour$2.20 per machine hour$4.00 per machine hourCFixed-MOH volume variance $Standard PriceSDetermine the fixed-MOH price and volume variances for the month.CUnfavorableFavorable

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Description: Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring aprofessional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first

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Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH Show Transcribed Text ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours 2.0 machine hours Actual results for January: ● 2.0 machine hours ● Show Transcribed Text Fixed-MOH price variance 3 26,000 gallons were actually produced. Cost of DM purchased was $250,560 for 14,400 gallons of solution. DM used in production was 12,740 gallons. Cost of DL was $133,796 for 8,060 DL hours worked. Variable-MOH cost was $117,390 for 54,600 machine hours used. Fixed-MOH cost was $223,860. $ Fixed-MOH volume variance $ $17.00 per gallon $17.00 per DL hour $2.20 per machine hour $4.00 per machine hour C Standard Price Determine the fixed-MOH price and volume variances for the month. J Unfavorable Favorable

Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH Show Transcribed Text ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours 2.0 machine hours Actual results for January: ● 2.0 machine hours ● Show Transcribed Text Fixed-MOH price variance 3 26,000 gallons were actually produced. Cost of DM purchased was $250,560 for 14,400 gallons of solution. DM used in production was 12,740 gallons. Cost of DL was $133,796 for 8,060 DL hours worked. Variable-MOH cost was $117,390 for 54,600 machine hours used. Fixed-MOH cost was $223,860. $ Fixed-MOH volume variance $ $17.00 per gallon $17.00 per DL hour $2.20 per machine hour $4.00 per machine hour C Standard Price Determine the fixed-MOH price and volume variances for the month. J Unfavorable Favorable

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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