Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March. Standards Direct materials Direct labor Mountain Mist Valley Stream 3 ounces at $15 per ounce 5 hours at $60 per hour $48 $335,340 5,750 4 ounces at $16.50 per ounce 6 hours at $75 per hour $52.50 $397,800 7,800 Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead 3,100 ounces at $13.50 per ounce 4,900 hours at $60.75 per hour $242,550 $313,950 1,000 units 4,700 ounces at $17.25 per ounce 7,400 hours at $76.50 per hour $378,510 $396,000 1,200 units Units produced (actual)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the
basis of standard costs. The following data are for March.
Mountain Mist
Standards
Direct materials
Direct labor
Valley Stream
Variable overhead (per direct labor-hour)
Fixed overhead (per month)
Expected activity (direct labor-hours)
Actual results
3 ounces at $15 per ounce
5 hours at $60 per hour
$48
$335,340
5,750
4 ounces at $16.50 per ounce
6 hours at $75 per hour
$52.50
$397,800
7,800
3,100 ounces at $13.50 per ounce
4,900 hours at $60.75 per hour
$242,550
$313,950
1,000 units
4,700 ounces at $17.25 per ounce
7,400 hours at $76.50 per hour
$378,510
$396,000
1,200 units
Direct material (purchased and used)
Direct labor
Variable overhead
Fixed overhead
Units produced (actual)
Peguired:
Transcribed Image Text:Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March. Mountain Mist Standards Direct materials Direct labor Valley Stream Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results 3 ounces at $15 per ounce 5 hours at $60 per hour $48 $335,340 5,750 4 ounces at $16.50 per ounce 6 hours at $75 per hour $52.50 $397,800 7,800 3,100 ounces at $13.50 per ounce 4,900 hours at $60.75 per hour $242,550 $313,950 1,000 units 4,700 ounces at $17.25 per ounce 7,400 hours at $76.50 per hour $378,510 $396,000 1,200 units Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Peguired:
"U" for unfavorable. If there is no effect, do not select either option.)
Mountain Mist
Valley Stream
Price Variance
Efficiency Variance
Price Variance
Efficiency Variance
Direct materials
Direct labor
Variable overhead
Production Volume
Production Volume
Price Variance
Price Variance
Variance
Variance
Fixed overhead
Transcribed Image Text:"U" for unfavorable. If there is no effect, do not select either option.) Mountain Mist Valley Stream Price Variance Efficiency Variance Price Variance Efficiency Variance Direct materials Direct labor Variable overhead Production Volume Production Volume Price Variance Price Variance Variance Variance Fixed overhead
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