Please do not give solution in image format thanku Wisner Fabrication prepares its budgets on the basis of standard costs. Variances are analyzed and reported monthly. There are nomaterials Inventories.The following Information relates to the current period:standard costs (per unit of output)Direct materials, 5 pounds @ $12.00 per poundDirect labor, 1.5 hours @ $30 per hourFactory overheadVariable (30% of material cost)Total standard cost per unitActual costs and activities for the month follow.Materials usedOutputActual labor costsActual variable overheadDirect materials:Price varianceEfficiency varianceDirect materials total varianceDirect laborRequired:Prepare a cost varlance analysis for the variable costs.Note: Round your answers to the nearest whole dollar amount. Indicate the effect of each varlance by selecting "F" for favorable,or "U" for unfavorable. If there is no effect, do not select elther option.Price varianceEfficiency varianceDirect labor total varianceVariable overheadPrice variance$ 6045Efficiency varianceVariable overhead total variance18S 12326,395 pounds at $ 12.59 per pound5,310 units9,320 hours at $33.90 per hour$ 97,690

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Description: Please do not give solution in image format thanku Wisner Fabrication prepares its budgets on the basis of standard costs. Variances are analyzed and reported monthly. There are nomaterials Inventories.The following Information relates to the current

There are three types of cost variances. They are material variances,labor variances and overhead…

Business

Accounting

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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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