Great Guard, which uses a standard cost accounting system, manufactured 210,000 boat fenders during the year, using 1,730,000 m of extruded vinyl purchased at $1.45 per metre. Production required 4,500 direct labour hours that cost $14.50 per hour. The materials standard was 8 m of vinyl per fender at a standard cost of $1.60 per metre. The labour standard was 0.023 direct labour hour per fender, at a standard cost of $13.00 per hour. Compute the price and efficiency variances for direct materials and direct labour. Does the pattern of variances suggest that Great Guard’s managers have been making trade-offs? Explain.
Answer to relevant QuestionsRecall that Kool-Time’s relevant range is 0 to 11 pools per month. Explain whether Kool Time would have a sales volume variance for fixed expenses in Exhibit 10-7 if In exhibit a. Kool-Time installs 14 pools per month. b. ...Refer to the Groovy Bottles Data Set in E10-53B. In Exercise Groovy Bottles is a manufacturer of ceramic bottles. The company has the following standards: Direct materials (clay)....................... 1.3 kg per ...The managers of Monachino, a contract manufacturer of DVD drives, are seeking explanations for the variances in the following report. Explain the meaning of each of Monachino’s materials, labour, and overhead variances. The Bolognese Corporation is in the process of setting price standards for its direct materials. Polymer clay is used in one product. The polymer clay is purchased for $14 per kilogram. The Bolognese Corporation always pays ...Austin Landers is the accountant for Sun Coast, a manufacturer of outdoor furniture that is sold through specialty stores and internet companies. Annually, Landers is responsible for reviewing the standard costs for the ...
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