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t variances. Select the required formulas, compute the cost variances for direct materials and direct la DH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance cost variance variance

t variances. Select the required formulas, compute the cost variances for direct materials and direct la DH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance cost variance variance

FINANCIAL ACCOUNTING
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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Chapter 23, Question 7. Please answer all requirements in same format as question so it's easy to transfer

Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) i Data Table Formula Variance Direct materials cost variance Direct labor cost variance Standard Cost Information Quantity Cost i Requirements 2 parts $0.15 per part Direct Materials Direct Labor 0.02 hours 8.00 per hour 0.02 hours 10 per hour Variable Manufacturing Overhead Fixed Manufacturing Overhead (S$28,500 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour) 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Actual Cost Information 3. Hear Smart's management used better quality materials during September. Discuss the trade-off between the two direct material variances. $ 41,800 Direct Materials (209,000 parts @ $0.20 per part) Choose from a Direct Labor (1,600 hours @ $8.15 per hour) 13,040 Variable Manufacturing Overhead 9,000 parts remaining Print Done Clear All Fixed Manufacturing Overhead 26.000
Transcribed Image Text:Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) i Data Table Formula Variance Direct materials cost variance Direct labor cost variance Standard Cost Information Quantity Cost i Requirements 2 parts $0.15 per part Direct Materials Direct Labor 0.02 hours 8.00 per hour 0.02 hours 10 per hour Variable Manufacturing Overhead Fixed Manufacturing Overhead (S$28,500 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour) 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Actual Cost Information 3. Hear Smart's management used better quality materials during September. Discuss the trade-off between the two direct material variances. $ 41,800 Direct Materials (209,000 parts @ $0.20 per part) Choose from a Direct Labor (1,600 hours @ $8.15 per hour) 13,040 Variable Manufacturing Overhead 9,000 parts remaining Print Done Clear All Fixed Manufacturing Overhead 26.000
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