1.
To prepare: Schedule of total
2.
a.
To compute: Direct materials price variance, based on purchases
Given information:
January 2014,
Actual direct cost is $3.80 per pound.
Budgeted direct cost is $4.00 per pound.
Direct material purchased is 40,300 pounds
b.
To compute: Direct materials efficiency variance.
Given information:
January 2014,
Actual output is 7,600 units.
Budgeted direct material per unit is 5 pounds per unit.
Actual quantity of direct material used is 37,300 pounds.
Budgeted rate per pound is $4 per pound.
c.
To compute: Direct manufacturing labor price variance.
Given information:
January 2014,
Actual labor is 31,400 hours.
Actual direct cost is $16.25 per hour.
Budgeted direct cost is $16 per hour.
d.
To compute: Direct manufacturing labor efficiency variance.
Given information:
January 2014,
Actual output is 7,600 units.
Budgeted direct material per unit is 5 pounds per unit.
Actual quantity of input hours is 31,400 hours.
Budgeted rate per pound is $16 per hour.
e.
To compute: Total manufacturing overhead spending variance.
Given information:
January 2014,
Denominator level for total manufacturing overhead per month is 37,000 direct manufacturing labor-hours.
Actual manufacturing overhead is $650,000.
Budgeted fixed overhead rate is $9 per labor hour.
Budgeted variable overhead rate is $8 per labor hour.
f.
To compute: Variable manufacturing overhead efficiency variance.
Given information:
January 2014,
Actual quantity of input hours is 31,400 hours.
Budgeted quantity of input for actual output is 30,400 hours.
Budgeted variable rate is $8 per hour.
g.
To compute: Production volume variance.
Given information:
January 2014,
Budgeted fixed overhead rate is $9 per labor hour.
Budgeted quantity of input for actual output is 30,400 hours.
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Chapter 8 Solutions
Cost Accounting, Student Value Edition (15th Edition)
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