Sweetly Sent, Incorporated, manufactures scented pillar candles. Its standard cost information for the month of February follo Standard Unit Cost $ 0.75 3.50 Direct materials (wax) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($10,000+ 40,000 units) Sweetly Sent has the following actual results for the month of February: 38,500 583,000 Number of units produced and sold Number of ounces of wax purchased and used Cost of wax used Standard Quantity 15 ounce 0.25 hour 0.25 hour Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost $ 37,895 9,900 $ 136,620 $ 3,630 $ 9,900 Standard Price (Rate) $ 0.05 per ounce $14.00 per hour $0.40 per hour Required: 1. Calculate the direct materials price, quantity, and total spending variances for Sweetly Sent. 0.10 0.25
Sweetly Sent, Incorporated, manufactures scented pillar candles. Its standard cost information for the month of February follo Standard Unit Cost $ 0.75 3.50 Direct materials (wax) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($10,000+ 40,000 units) Sweetly Sent has the following actual results for the month of February: 38,500 583,000 Number of units produced and sold Number of ounces of wax purchased and used Cost of wax used Standard Quantity 15 ounce 0.25 hour 0.25 hour Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost $ 37,895 9,900 $ 136,620 $ 3,630 $ 9,900 Standard Price (Rate) $ 0.05 per ounce $14.00 per hour $0.40 per hour Required: 1. Calculate the direct materials price, quantity, and total spending variances for Sweetly Sent. 0.10 0.25
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter9: Standard Costing: A Functional-based Control Approach
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Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Sweetly Sent, Incorporated, manufactures scented pillar candles. Its standard cost information for the month of February follows:
Standard
Unit
Cost
$0.75
3.50
Direct materials (wax)
Direct labor
Variable manufacturing overhead (based on direct
labor hours)
Fixed manufacturing overhead ($10,000 ÷ 40,000
units)
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
Sweetly Sent has the following actual results for the month of February:
Number of units produced and sold
Number of ounces of wax purchased and used
Cost of wax used
Standard Quantity
15 ounce
Required 1
0.25 hour
Required 2 Required 3
0.25 hour
Required:
1. Calculate the direct materials price, quantity, and total spending variances for Sweetly Sent.
2. Calculate the direct labor rate, efficiency, and total spending variances for Sweetly Sent.
3. Calculate the variable overhead rate, efficiency, and total spending variances for Sweetly Sent.
Complete this question by entering your answers in the tabs below.
Direct Materials Price Variance
Direct Materials Quantity Variance
38,500
583,000
$ 37,895
9,900
$ 136,620
$ 3,630
$ 9,900
Standard Price (Rate)
$ 0.05 per ounce.
$14.00 per hour
$ 0.40 per hour
0.10
0.25
Calculate the direct materials price, quantity, and total spending variances for Sweetly Sent.
Note: Do not round your intermediate calculations. Enter the dollar value of the variance as an absolute value (positive
number) and then use the drop-down menu to indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance).
Show less](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c855d09-659a-430c-b80e-706ecad434fa%2F1c359a4d-8710-4eb4-bf9e-d3f8f3b937f2%2Fburrhin_processed.png&w=3840&q=75)
Transcribed Image Text:Sweetly Sent, Incorporated, manufactures scented pillar candles. Its standard cost information for the month of February follows:
Standard
Unit
Cost
$0.75
3.50
Direct materials (wax)
Direct labor
Variable manufacturing overhead (based on direct
labor hours)
Fixed manufacturing overhead ($10,000 ÷ 40,000
units)
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
Sweetly Sent has the following actual results for the month of February:
Number of units produced and sold
Number of ounces of wax purchased and used
Cost of wax used
Standard Quantity
15 ounce
Required 1
0.25 hour
Required 2 Required 3
0.25 hour
Required:
1. Calculate the direct materials price, quantity, and total spending variances for Sweetly Sent.
2. Calculate the direct labor rate, efficiency, and total spending variances for Sweetly Sent.
3. Calculate the variable overhead rate, efficiency, and total spending variances for Sweetly Sent.
Complete this question by entering your answers in the tabs below.
Direct Materials Price Variance
Direct Materials Quantity Variance
38,500
583,000
$ 37,895
9,900
$ 136,620
$ 3,630
$ 9,900
Standard Price (Rate)
$ 0.05 per ounce.
$14.00 per hour
$ 0.40 per hour
0.10
0.25
Calculate the direct materials price, quantity, and total spending variances for Sweetly Sent.
Note: Do not round your intermediate calculations. Enter the dollar value of the variance as an absolute value (positive
number) and then use the drop-down menu to indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance).
Show less
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