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The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the product follows: Direct materials, 2 pounds at $10.00 per pound Direct labor, 0.8 hours at $31.25 per hour Factory overhead applied at 120% of direct labor (variable costs - $18; fixed costs = $12) Variable selling and administrative cost Fixed selling and administrative cost Total unit costs $ 20 25 30 10 12 $ 97 Standards have been computed based on a master budget activity level of 20,000 direct labor-hours per month. Actual activity for the past month was as follows:

The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the product follows: Direct materials, 2 pounds at $10.00 per pound Direct labor, 0.8 hours at $31.25 per hour Factory overhead applied at 120% of direct labor (variable costs - $18; fixed costs = $12) Variable selling and administrative cost Fixed selling and administrative cost Total unit costs $ 20 25 30 10 12 $ 97 Standards have been computed based on a master budget activity level of 20,000 direct labor-hours per month. Actual activity for the past month was as follows:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the product follows: Direct materials, 2 pounds at $10.00 per pound Direct labor, 0.8 hours at $31.25 per hour Factory overhead applied at 120% of direct labor (variable costs $18; fixed costs = $12) Variable selling and administrative cost Fixed selling and administrative cost Total unit costs Materials used Direct labor: Total factory overhead Production Standards have been computed based on a master budget activity level of 20,000 direct labor-hours per month. Actual activity for the past month was as follows: $ 657,000 $20 25 46,500 pounds at $9.90 per pound 17,800 hours at $32 per hour 22,500 units 30 10 12 $ 97 Required: a. Prepare variance analyses for the variable and fixed costs. b. Complete the following table with the total variance for a resource.
Transcribed Image Text:The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the product follows: Direct materials, 2 pounds at $10.00 per pound Direct labor, 0.8 hours at $31.25 per hour Factory overhead applied at 120% of direct labor (variable costs $18; fixed costs = $12) Variable selling and administrative cost Fixed selling and administrative cost Total unit costs Materials used Direct labor: Total factory overhead Production Standards have been computed based on a master budget activity level of 20,000 direct labor-hours per month. Actual activity for the past month was as follows: $ 657,000 $20 25 46,500 pounds at $9.90 per pound 17,800 hours at $32 per hour 22,500 units 30 10 12 $ 97 Required: a. Prepare variance analyses for the variable and fixed costs. b. Complete the following table with the total variance for a resource.
a. Prepare variance analyses for the variable and fixed costs. b. Complete the following table with the total variance for a resource. Complete this question by entering your answers in the tabs below. Required A Required B Prepare variance analyses for the variable and fixed costs. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct materials: Price variance Efficiency variance Direct labor Price variance Efficiency variance Variable overhead Efficiency variance Fixed overhead Production volume variance Complete this question by entering your answers in the tabs below. Required A Required B Complete the following table with the total variance for a resource. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Resource Direct materials Direct labor Overhead Amount Required B > U/F < Required A
Transcribed Image Text:a. Prepare variance analyses for the variable and fixed costs. b. Complete the following table with the total variance for a resource. Complete this question by entering your answers in the tabs below. Required A Required B Prepare variance analyses for the variable and fixed costs. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct materials: Price variance Efficiency variance Direct labor Price variance Efficiency variance Variable overhead Efficiency variance Fixed overhead Production volume variance Complete this question by entering your answers in the tabs below. Required A Required B Complete the following table with the total variance for a resource. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Resource Direct materials Direct labor Overhead Amount Required B > U/F < Required A
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