The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour. (Click the icon to view the standards.) The number of finished units budgeted for January was 9,950; 9,900 units were actually produced. (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 99,500 kg, at a total cost of $527,350. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Required Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Budgeted price 5.10 5.10 31.00 Direct materials Direct manufacturing labour Direct materials (purchases) Direct materials (usage) Direct manufacturing labour Next, determine the formula and calculate the costs for the flexible budget. Budgeted price 5.10 31.00 Standards Actual input x 99,500 97,500 4,900 x S x S x S Actual Data Direct materials: 10 kg. at $5.10 per kg. Direct manufacturing labour: 0.5 hour at $31 per hour x Budgeted input for actual output X $ 51.00 15.50 - X Cost = $ 507,450 $ 497,250 $ 151,900 Actual results in January were as follows: Direct materials: 97,500 kg. used Direct manufacturing labour: 4,900 hours $ 160,475 - X Flexible budget cost

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Chapter1: Financial Statements And Business Decisions
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The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct
manufacturing labour:
(Click the icon to view the standards.)
The number of finished units budgeted for January was 9,950; 9,900 units were actually produced.
(Click the icon to view actual data.)
Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to
99,500 kg, at a total cost of $527,350. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of
usage.
Required
Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour.
Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.)
Budgeted price
5.10
5.10
31.00
Direct materials
Direct manufacturing labour
Direct materials (purchases)
Direct materials (usage)
Direct manufacturing labour
Next, determine the formula and calculate the costs for the flexible budget.
Budgeted price
5.10
31.00
Standards
Actual input
99,500
97,500
4,900
x S
x S
Actual Data
X
$
Direct materials: 10 kg. at $5.10 per kg.
Direct manufacturing labour: 0.5 hour at $31 per hour
X
X
X
$ 51.00
15.50
Budgeted input for actual output
Actual results in January were as follows:
Direct materials: 97,500 kg. used
Direct manufacturing labour: 4,900 hours $ 160,475
I
=
X
Cost
$
507,450
$
497,250
$ 151,900
X
=
=
Flexible budget cost
Transcribed Image Text:The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour: (Click the icon to view the standards.) The number of finished units budgeted for January was 9,950; 9,900 units were actually produced. (Click the icon to view actual data.) Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 99,500 kg, at a total cost of $527,350. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Required Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Budgeted price 5.10 5.10 31.00 Direct materials Direct manufacturing labour Direct materials (purchases) Direct materials (usage) Direct manufacturing labour Next, determine the formula and calculate the costs for the flexible budget. Budgeted price 5.10 31.00 Standards Actual input 99,500 97,500 4,900 x S x S Actual Data X $ Direct materials: 10 kg. at $5.10 per kg. Direct manufacturing labour: 0.5 hour at $31 per hour X X X $ 51.00 15.50 Budgeted input for actual output Actual results in January were as follows: Direct materials: 97,500 kg. used Direct manufacturing labour: 4,900 hours $ 160,475 I = X Cost $ 507,450 $ 497,250 $ 151,900 X = = Flexible budget cost
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