Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH Fixed-MOH (a) 10 square yards per unit 1.1 DL hours per unit 1.1 DL hours per unit 1.1 DL hours per unit Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year. Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance Fixed-MOH $ Fixed-MOH volume variance $ @ $6/square yard @$16/DL hour @$2.80/DL hour @ $5/DL hour $
Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH Fixed-MOH (a) 10 square yards per unit 1.1 DL hours per unit 1.1 DL hours per unit 1.1 DL hours per unit Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year. Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance Fixed-MOH $ Fixed-MOH volume variance $ @ $6/square yard @$16/DL hour @$2.80/DL hour @ $5/DL hour $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and
DL usage and price expectations.
Direct materials
Direct labor
Variable-MOH
Fixed-MOH
(a)
10 square yards per unit
1.1 DL hours per unit
1.1 DL hours per unit
1.1 DL hours per unit
Fixed-MOH price variance
Fixed-MOH
Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce
and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year.
$
Fixed-MOH volume variance $
@ $6/square yard
Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or
overapplied, and by how much.
@$16/DL hour
$
@ $2.80/DL hour
@ $5/DL hour
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