Use the following information to prepare a standard cost income statement for Whitmer Company for 2021. Cost of Goods Sold at standard $ 367,000 Direct Labor Efficiency Variance $ 18,000 F Sales Revenue at standard 550,000 Variable Overhead Efficiency Variance 3,400 U Direct Materials Cost Variance 8,000 U Fixed Overhead Volume Variance 12,000 F Direct Materials Efficiency Variance 2,800 U Selling and Administrative Expenses 77,000 Direct Labor Cost Variance 42,000 U Variable Overhead Cost Variance 700 F Fixed Overhead Cost Variance 1,900 F

Use the following information to prepare a standard cost income statement for Whitmer Company for 2021. Cost of Goods Sold at standard $ 367,000 Direct Labor Efficiency Variance $ 18,000 F Sales Revenue at standard 550,000 Variable Overhead Efficiency Variance 3,400 U Direct Materials Cost Variance 8,000 U Fixed Overhead Volume Variance 12,000 F Direct Materials Efficiency Variance 2,800 U Selling and Administrative Expenses 77,000 Direct Labor Cost Variance 42,000 U Variable Overhead Cost Variance 700 F Fixed Overhead Cost Variance 1,900 F

Name: Preparing a standard cost income statementUse the following informati
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Preparing a standard cost income statementUse the following information to prepare a standard cost income statement for Whitmer Company for 2021.Cost of Goods Sold at standard$ 367,000Direct Labor Efficiency Variance$ 18,000 FSales Revenue at standa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cost of Goods Sold (at standard) $361,000 Direct Labor Efficiency Variance $19,000 F Sales Revenue…

A: Standard cost income statement is the income statement used by manufacturing firms for recording the…

Q: In Bramble Corp.'s income statement, they report a gross profit of $44,000 at standard and the…

A: Step 1. Calculate the total Materials VarianceMaterials Price Variance: $420 FMaterials Quantity…

Q: Jasper Company makes a single product. Its standard costs per unit are as follows: Direct materials,…

A: Variable Overhead spending variance is computed by subtracting the actual hours multiplied by…

Q: Vargross Company presented the following data for analysis affecting its gross profit. The company…

A: 1. Tota Gross Profit Variance = Actual gross profit - Budgeted gross profit Actual gross profit…

Q: During the months of April through September, the following total utility costs were paid at various…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: Frontera Company’s output for the current period results in a $20,000 unfavorable direct labor rate…

A: Labour cost variance: The difference between the standard cost of labour estimated and the actual…

Q: nformation on Bustos Manufacturing Company’s overhead costs is as follows: Budgeted overhead based…

A: The overhead variance is the difference between actual overhead cost and applied overhead cost.

Q: Simons Corp. has the following income statement under standard absorption costing AFTER disposing of…

A: ItemAmount Sales$450,000Variable cost of goods soldProduction$400,000Less: Ending inventory…

Q: Direct Labor Variances The following data relate to labor cost for production of 33,000 cellular…

A: Labor cost variance is calculated as the excess of total standard cost over actual cost.

Q: Yohan Company has the following balances in its direct materials and direct labor variance accounts…

A: Adjusted cost of goods sold = unadjusted cost of goods sold +/- Adjustment due to closing of…

Q: Sheridan Zone Corporation experienced the following variances: materials price $390 U, materials…

A: Unfavorable results arises when actual costs results are greater than budgeted costs. Favorable…

Q: If a company assigns factory labor to production at a cost of $84,000 when standard cost is $80,000,…

A: Solution:- If a company assigns factory labor to production at a cost of $84,000 when standard cost…

Q: The following information related to direct labor variances are available for PXQYPQ356 Corporation…

A: Variances are the differences between the estimated costs and the actual costs of direct material,…

Q: Information on Ingrid Company’s direct labor costs for May 2021 is as follows:

A: total direct labor payroll for May=Actual rate*Actual labor hours =$5.8*21,000 =$121,800. $121,800

Q: Total gross profit variance = Price variance = Price-Quantity variance = Cost variance =…

A: Variance is the deviation between actual figures and budgeted figures. If the deviation or change is…

Q: Using the following data from the records of Starts Inc. for November of the current year, prepare…

A: Since the cost of goods sold given in the question is standard, any favorable direct material,…

Q: Vargross Company presented the following data for analysis affecting its gross profit. The company…

A: SOLUTION FORMULAS 1- SALES PRICE VARIANCE = (CURRENT YEAR SELLING PRICE - LAST YEAR SELLING…

Q: Superior produced 1,000 units of finished product in 2018. Direct materials cost variance $115 U…

A: In the Standard costing system, a standard or estimated cost is calculated for each item like direct…

Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

Preparing a standard cost income statement
Use the following information to prepare a standard cost income statement for Whitmer Company for 2021.
Cost of Goods Sold at standard
$ 367,000
Direct Labor Efficiency Variance
$ 18,000 F
Sales Revenue at standard
550,000
Variable Overhead Efficiency Variance
3,400 U
Direct Materials Cost Variance
8,000 U
Fixed Overhead Volume Variance
12,000 F
Direct Materials Efficiency Variance
2,800 U
Selling and Administrative Expenses
77,000
Direct Labor Cost Variance
42,000 U
Variable Overhead Cost Variance
700 F
Fixed Overhead Cost Variance
1,900 F

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company shows a $24,000 unfavorable direct labor rate variance and a $18,000unfavorable direct labor efficiency variance. The company's standard cost of direct labor is $370,000. What is the actual cost of direct labor? Actual cost of direct labor
Determine the following: Cost-Quantity variance Cost variance Price-Quantity variance Price variance Cost volume variance
LJ Company has the following information for the third quarter of 2018: Actual total overhead (fixed plus variable) Php374,850Budget formula Php231,000 plus Php1.20 per hourSpending variance (3-way analysis) Php16,800 unfavorableVolume variance (2-way analysis) Php10,500 favorableOver-all factory overhead variance Php12,600 unfavorable 8. Determine the efficiency variance.A. Php6,300 F C. Php18,900 FB. Php6,300 UF D. Php18,900 UF 9. Determine the actual hours worked during the 3rd quarter.A. 127,050 hours C. 87,150 hoursB. 143,850 hours D. 105,875 hours 10. Determine the standard hours needed for the 3rd quarter.A. 100,625 hours C. 133,350 hoursB. 111,125 hours D. 120,750 hours
Compute the following: Total gross profit variance Sales mix variance Final sales volume variance Format: 11,111 F or 11,111 U
Information for Garner Company's direct-labor costs for the month of September 2005 was as follows: Actual direct-labor hours Standard direct-labor hours Total direct-labor payroll Direct-labor efficiency variance-favorable Answer: 34,500 hours 35,000 hours $241,500 $3,200 What is Garner's direct-labor price (or rate) variance? Be sure to label the variance favorable or unfavorable.
Calculate the Variable overhead variances and prepare an operating statement for the month endedJune 2015 as per the tables provided below. Variable overhead variances £ Favourable (F)/ Adverse (A) Variable overhead rate variance: Variable overhead efficiency variance: Total Variable overhead variance Operating Statement (OP): Standard OP Variances Actual OP £ £ £ £ £ Sales Direct materials Direct labour Variable overheads Total variable expenses Contribution
23. Consider the following information: Actual direct labor hours Standard direct labor hours Total actual direct labor cost Direct-labor efficiency variance The direct-labor rate variance is: 34,000 34,600 $159,800 $2,460F
Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.80 Actual quantity purchased and used in production 100 Standard quantity for units produced 120 Actual labor rate per hour $15 Standard labor rate per hour $13 Actual hours 190 Standard hours for units produced 210 A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance $fill in the blank 1 Material quantity variance $fill in the blank 3 Labor rate variance $fill in the blank 5 Labor efficiency variance $fill in the blank 7 B. What are some possible causes for this combination of favorable and unfavorable variances?
Please help me with show all calculation thanku
The following data relate to a product manufactured by Kent Corporation: Direct material standard: 3.5 square feet at $2.50 per square foot Direct material purchased & used: 33,000 square feet at $2.60 per square foot Manufacturing activity: 9,600 units completed SHOW ALL COMPUTATIONS Compute price variance, quantity variance, direct material variance.
* 00 CH R E. Exercise 16-35 (Algo) Profit Variance Analysis (LO 16-4) Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 116,000 liters at a budgeted price of $195 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds @ $12) (0.5 hours @ $40) $24 Variable overhead is applied based on direct labor hours. The variable overhead rate is $100 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $50 per unit. All non-manufacturing costs are fixed and are budgeted at $2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $606,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. Sales revenue Less variable…
At the beginning of 2021, ABC Manufacturing Ltd., adopted the following standards for its direct material costs: Input Cost per Output Unit Direct labour 5 hours at $18 per hour $ 90 During the most recent month 2,600 output units were produced with 14,100 hours used at a cost of $17.5 per hour. What were the direct labour price variance and quantity variance, respectively?