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UTease comprehensive question Saved 4 Part 4 of 8 12.5 points ! Required information Comprehensive Problem 6 (Algo) [The following information applies to the questions displayed below.) Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 18,000 units or 36,000 direct labor hours): eBook Direct materials (2.5 pounds at $10) Direct labor (2.0 hours at $40) $ 25.00 80.00 Print Variable overhead (2.0 hours at $25) 50.00 Fixed overhead (2.0 hours at $35) 70.00 Standard cost per unit $ 225.00 References Budgeted selling and administrative costs: Variable $ 4 per unit Fixed $1,500,000 Expected sales activity: 14,000 units at $380 per unit Desired ending inventories: 12% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 17,000 15,500 S 375 33,500 $1,373,500 46,500 pounds $ 465,000 46,500 pounds $1,000,000 $ 800,000 $1,756,000 In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. Comprehensive Problem 6 (Algo) Part d d. Find the direct materials variances (materials price variance and quantity variance). (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Variances Material quantity variance Material price variance

UTease comprehensive question Saved 4 Part 4 of 8 12.5 points ! Required information Comprehensive Problem 6 (Algo) [The following information applies to the questions displayed below.) Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 18,000 units or 36,000 direct labor hours): eBook Direct materials (2.5 pounds at $10) Direct labor (2.0 hours at $40) $ 25.00 80.00 Print Variable overhead (2.0 hours at $25) 50.00 Fixed overhead (2.0 hours at $35) 70.00 Standard cost per unit $ 225.00 References Budgeted selling and administrative costs: Variable $ 4 per unit Fixed $1,500,000 Expected sales activity: 14,000 units at $380 per unit Desired ending inventories: 12% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 17,000 15,500 S 375 33,500 $1,373,500 46,500 pounds $ 465,000 46,500 pounds $1,000,000 $ 800,000 $1,756,000 In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. Comprehensive Problem 6 (Algo) Part d d. Find the direct materials variances (materials price variance and quantity variance). (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Variances Material quantity variance Material price 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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UTease comprehensive question Saved 4 Part 4 of 8 12.5 points ! Required information Comprehensive Problem 6 (Algo) [The following information applies to the questions displayed below.) Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 18,000 units or 36,000 direct labor hours): eBook Direct materials (2.5 pounds at $10) Direct labor (2.0 hours at $40) $ 25.00 80.00 Print Variable overhead (2.0 hours at $25) 50.00 Fixed overhead (2.0 hours at $35) 70.00 Standard cost per unit $ 225.00 References Budgeted selling and administrative costs: Variable $ 4 per unit Fixed $1,500,000 Expected sales activity: 14,000 units at $380 per unit Desired ending inventories: 12% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 17,000 15,500 S 375 33,500 $1,373,500 46,500 pounds $ 465,000 46,500 pounds $1,000,000 $ 800,000 $1,756,000 In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. Comprehensive Problem 6 (Algo) Part d d. Find the direct materials variances (materials price variance and quantity variance). (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Variances Material quantity variance Material price variance
Transcribed Image Text:UTease comprehensive question Saved 4 Part 4 of 8 12.5 points ! Required information Comprehensive Problem 6 (Algo) [The following information applies to the questions displayed below.) Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 18,000 units or 36,000 direct labor hours): eBook Direct materials (2.5 pounds at $10) Direct labor (2.0 hours at $40) $ 25.00 80.00 Print Variable overhead (2.0 hours at $25) 50.00 Fixed overhead (2.0 hours at $35) 70.00 Standard cost per unit $ 225.00 References Budgeted selling and administrative costs: Variable $ 4 per unit Fixed $1,500,000 Expected sales activity: 14,000 units at $380 per unit Desired ending inventories: 12% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 17,000 15,500 S 375 33,500 $1,373,500 46,500 pounds $ 465,000 46,500 pounds $1,000,000 $ 800,000 $1,756,000 In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. Comprehensive Problem 6 (Algo) Part d d. Find the direct materials variances (materials price variance and quantity variance). (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Variances Material quantity variance Material price variance
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