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Wisner Fabrication prepares its budgets on the basis of standard costs. Variances are analyzed and reported monthly. There are no materials Inventories. The following information relates to the current period: Standard costs (per unit of output) Direct materials, 5 pounds @ $12.00 per pound Direct labor, 1.5 hours @ $30 per hour Factory overhead Variable (30% of material cost) Total standard cost per unit Actual costs and activities for the month follow: Materials used Output Actual labor costs Actual variable overhead $ 68 45 18 S 123 26,395 pounds at $ 12.59 per pound 5,310 units 9,320 hours at $ 33.90 per hour $ 97,690 Required: Prepare a cost varlance analysis for the variable costs. Note: Round your answers to the nearest whole dollar amount. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.

Wisner Fabrication prepares its budgets on the basis of standard costs. Variances are analyzed and reported monthly. There are no materials Inventories. The following information relates to the current period: Standard costs (per unit of output) Direct materials, 5 pounds @ $12.00 per pound Direct labor, 1.5 hours @ $30 per hour Factory overhead Variable (30% of material cost) Total standard cost per unit Actual costs and activities for the month follow: Materials used Output Actual labor costs Actual variable overhead $ 68 45 18 S 123 26,395 pounds at $ 12.59 per pound 5,310 units 9,320 hours at $ 33.90 per hour $ 97,690 Required: Prepare a cost varlance analysis for the variable costs. Note: Round your answers to the nearest whole dollar amount. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.

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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Wisner Fabrication prepares its budgets on the basis of standard costs. Variances are analyzed and reported monthly. There are no materials Inventories. The following Information relates to the current period: standard costs (per unit of output) Direct materials, 5 pounds @ $12.00 per pound Direct labor, 1.5 hours @ $30 per hour Factory overhead Variable (30% of material cost) Total standard cost per unit Actual costs and activities for the month follow. Materials used Output Actual labor costs Actual variable overhead Direct materials: Price variance Efficiency variance Direct materials total variance Direct labor Required: Prepare a cost varlance analysis for the variable costs. Note: Round your answers to the nearest whole dollar amount. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Price variance Efficiency variance Direct labor total variance Variable overhead Price variance $ 60 45 Efficiency variance Variable overhead total variance 18 S 123 26,395 pounds at $ 12.59 per pound 5,310 units 9,320 hours at $33.90 per hour $ 97,690
Transcribed Image Text:Wisner Fabrication prepares its budgets on the basis of standard costs. Variances are analyzed and reported monthly. There are no materials Inventories. The following Information relates to the current period: standard costs (per unit of output) Direct materials, 5 pounds @ $12.00 per pound Direct labor, 1.5 hours @ $30 per hour Factory overhead Variable (30% of material cost) Total standard cost per unit Actual costs and activities for the month follow. Materials used Output Actual labor costs Actual variable overhead Direct materials: Price variance Efficiency variance Direct materials total variance Direct labor Required: Prepare a cost varlance analysis for the variable costs. Note: Round your answers to the nearest whole dollar amount. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Price variance Efficiency variance Direct labor total variance Variable overhead Price variance $ 60 45 Efficiency variance Variable overhead total variance 18 S 123 26,395 pounds at $ 12.59 per pound 5,310 units 9,320 hours at $33.90 per hour $ 97,690
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