k I t nces Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance 0.75 pounds at $8.60 per pound 1.25 hours at $26.60 per hour $ 21.80 $ 417,120 17,380 Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. K4 10,600 pounds at $8.00 per pound 14,830 hours at $26.90 per hour $ 343,060 $ 389,740 12,260 units Production Volume Variance Price Variance X7 1 pound at $9.20 per pound 1.50 hours at $30 per hour $ 23.60 $ 494,130 23,530 X7 14,230 pounds at $9.50 per pound 22,330 hours at $33.20 per hour $ 467,212 $ 491,320 14,530 units Efficiency Variance Production Vorumne Variance
k I t nces Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance 0.75 pounds at $8.60 per pound 1.25 hours at $26.60 per hour $ 21.80 $ 417,120 17,380 Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. K4 10,600 pounds at $8.00 per pound 14,830 hours at $26.90 per hour $ 343,060 $ 389,740 12,260 units Production Volume Variance Price Variance X7 1 pound at $9.20 per pound 1.50 hours at $30 per hour $ 23.60 $ 494,130 23,530 X7 14,230 pounds at $9.50 per pound 22,330 hours at $33.20 per hour $ 467,212 $ 491,320 14,530 units Efficiency Variance Production Vorumne Variance
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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