Cost per Output Unit $ 20.00 Input 5 lb. at $4 per Ib. 4 hrs. at $16 per hr. Direct materials Direct manufacturing labor Manufacturing overhead: 64.00 $8 per DLH $9 per DLH Variable 32.00 Fixed 36.00 Standard manufacturing cost per output unit $152.00 The denominator level for total manufacturing overhead per month in 2017 is 37,000 direct manufacturing labor-hours. Beal's budget for January 2017 was based on this denominator level. The records for January indicated the following: Direct materials purchased 40,300 lb. at $3.80 per Ib. Direct materials used 37,300 lb. Direct manufacturing labor Total actual manufacturing overhead (variable and fixed) Actual production 31,400 hrs. at $16.25 per hr. S650,000 7,600 output units Required 1. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2017. 2. For the month of January 2017, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance, based on purchases b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance

Name: Review of Chapters 7 and 8, 3-variance analysis. (CPA, adapted) The Be
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Description: Review of Chapters 7 and 8, 3-variance analysis. (CPA, adapted) The Beal Manufacturing Company’s costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is alloc

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Chapter1: Financial Statements And Business Decisions

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Review of Chapters 7 and 8, 3-variance analysis. (CPA, adapted) The Beal Manufacturing Company’s costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of 2017, Beal adopted the following standards for its manufacturing costs:

Cost per Output Unit
$ 20.00
Input
5 lb. at $4 per Ib.
4 hrs. at $16 per hr.
Direct materials
Direct manufacturing labor
Manufacturing overhead:
64.00
$8 per DLH
$9 per DLH
Variable
32.00
Fixed
36.00
Standard manufacturing cost per output unit
$152.00

The denominator level for total manufacturing overhead per month in 2017 is 37,000 direct manufacturing
labor-hours. Beal's budget for January 2017 was based on this denominator level. The records for January
indicated the following:
Direct materials purchased
40,300 lb. at $3.80 per Ib.
Direct materials used
37,300 lb.
Direct manufacturing labor
Total actual manufacturing overhead (variable and fixed)
Actual production
31,400 hrs. at $16.25 per hr.
S650,000
7,600 output units
Required
1. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2017.
2. For the month of January 2017, compute the following variances, indicating whether each is favorable
(F) or unfavorable (U):
a. Direct materials price variance, based on purchases
b. Direct materials efficiency variance
c. Direct manufacturing labor price variance
d. Direct manufacturing labor efficiency variance
e. Total manufacturing overhead spending variance
f. Variable manufacturing overhead efficiency variance
g. Production-volume variance

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