Cristol Company produces sheets. The master budget shows the following standards information and indicates the company expected
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Question:
Cristol Company produces sheets. The master budget shows the following standards information and indicates the company expected to produce and sell 27,000 units for the year. | ||||||
Direct Materials | 3 yards per unit at $3.10 per yard | |||||
Direct Labor | 2 hours per unit at $11 per hour | |||||
Variable Manufacturing Overhead | 2 direct labor hours per unit at $3.60 per hour | |||||
Bristol actually produced and sold 30,000 units for the year. During the year, the company purchased 120,000 yards of material for $349,000, and used 104,000 yards in production. A total of 49,000 labor hours were worked during the year at a cost of $547,000. Variable overhead costs totaled $211,000 for the year. | ||||||
Required: | ||||||
A. Calculate the materials price variance and the materials quantity variance. Clearly label each variance as either favorable or unfavorable immediately to the right of each variance. | ||||||
B.Calculate the labor rate variance and the labor efficiency variance. Clearly label each variance as either favorable or unfavorable immediately to the right of each variance | ||||||
C. Calculate the variable overhead spending variance and the variable overhead efficiency variance. Clearly label each variance as either favorable or unfavorable immediately to the right of each variance. | ||||||
Your answers to this open-ended assignment should be placed in the space below this line. | ||||||
A. | Materials Price Variance | |||||
Actual quantity | Actual quantity | |||||
Actual price | Standard price | |||||
Total dollars | Total dollars | |||||
Materials price variance | ||||||
Materials Quantity Variance | ||||||
Actual quantity | Standard quantity | |||||
Standard price | Standard price | |||||
Total dollars | Total dollars | |||||
Materials quantity variance | ||||||
B. | Labor Rate Variance | |||||
Actual hours | Actual hours | |||||
Actual rate | Standard rate | |||||
Total dollars | Total dollars | |||||
Labor rate variance | ||||||
Labor Efficiency Variance | ||||||
Actual hours | Standard hours | |||||
Standard rate | Standard rate | |||||
Total dollars | Total dollars | |||||
Labor efficiency variance | ||||||
C. | Variable Overhead Spending Variance | |||||
Actual hours | Actual hours | |||||
Actual rate | Standard rate | |||||
Total dollars | Total dollars | |||||
Variable overhead spending variance | ||||||
Variable Overhead Efficiency Variance | ||||||
Actual hours | Standard hours | |||||
Standard rate | Standard rate | |||||
Total dollars | Total dollars | |||||
Variable overhead efficiency variance |
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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