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The standards for one case of Springfever Tonic are as follows: Direct materials Direct labor Variable overhead (based on direct labor hours) 5.80 lb e $ 4.80/1b - $27.84 4.80 hr e $11.80/hr = $56.64 4.80 hr e $ 5.80/hr = $27.84 During the week ended August 28, the following activity took place: 20,000 lb of raw materials were purchased for inventory at a cost of $4.75 per pound. 2,900 cases of finished product were produced. 18,500 lb of raw materials were used. 13,600 direct labor hours were worked at a total cost of $170,000. $77,520 of actual variable overhead costs were incurred. Required: Calculate each of the following variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) a. Price variance for raw materials purchased. b. Raw materials usage variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead spending variance. f. Variable overhead efficiency variance.

The standards for one case of Springfever Tonic are as follows: Direct materials Direct labor Variable overhead (based on direct labor hours) 5.80 lb e $ 4.80/1b - $27.84 4.80 hr e $11.80/hr = $56.64 4.80 hr e $ 5.80/hr = $27.84 During the week ended August 28, the following activity took place: 20,000 lb of raw materials were purchased for inventory at a cost of $4.75 per pound. 2,900 cases of finished product were produced. 18,500 lb of raw materials were used. 13,600 direct labor hours were worked at a total cost of $170,000. $77,520 of actual variable overhead costs were incurred. Required: Calculate each of the following variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) a. Price variance for raw materials purchased. b. Raw materials usage variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead spending variance. f. Variable overhead efficiency 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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Chapters 13-16 G Saved Help Save The standards for one case of Springfever Tonic are as follows: Direct materials Direct labor 5.80 lb @ $ 4.80/lb $27.84 4.80 hr @ $11.80/hr - $56.64 4.80 hr @ $ 5.80/hr - $27.84 Variable overhead (based on direct labor hours) During the week ended August 28, the following activity took place: 20,000 lb of raw materials were purchased for inventory at a cost of $4.75 per pound. 2,900 cases of finished product were produced. 18,500 lb of raw materials were used. 13,600 direct labor hours were worked at a total cost of $170,000. $77,520 of actual variable overhead costs were incurred. Required: Calculate each of the following variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e. zero variance).) a. Price variance for raw materials purchased. b. Raw materials usage variance. c. Direct labor rate variance, d. Direct labor efficiency variance. e. Variable overhead spending variance. f. Variable overhead efficiency variance. Prev 3 of 6 Next > MacBook Air
Transcribed Image Text:Chapters 13-16 G Saved Help Save The standards for one case of Springfever Tonic are as follows: Direct materials Direct labor 5.80 lb @ $ 4.80/lb $27.84 4.80 hr @ $11.80/hr - $56.64 4.80 hr @ $ 5.80/hr - $27.84 Variable overhead (based on direct labor hours) During the week ended August 28, the following activity took place: 20,000 lb of raw materials were purchased for inventory at a cost of $4.75 per pound. 2,900 cases of finished product were produced. 18,500 lb of raw materials were used. 13,600 direct labor hours were worked at a total cost of $170,000. $77,520 of actual variable overhead costs were incurred. Required: Calculate each of the following variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e. zero variance).) a. Price variance for raw materials purchased. b. Raw materials usage variance. c. Direct labor rate variance, d. Direct labor efficiency variance. e. Variable overhead spending variance. f. Variable overhead efficiency variance. Prev 3 of 6 Next > MacBook Air
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