ing P23-338 Mancini manufactures embroidered jackets. The company prepares flex ible budgets and uses a standard...

 

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ing P23-338 Mancini manufactures embroidered jackets. The company prepares flex ible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a jacket is based on static budget volume of 14,000 jackets per month: Direct mariah (3.0 sq.34.00 per $12.00 18.00 Direct labor 12 hours 39.40 per houd Manufacturing overhead $1.30 Wble (2 hours 30.65 per hour $2.20 per ho Fised (2 hours 4.40 5.70 Total cost per jacket $36.30 Actual cost and production information a. Actual production was 13,600 jackets. b. Actual direct materials usage was 2.8 square feet per jacket, at an actual price of $4.10 per square foot. c. Actual direct labor usage of 25,000 hours at a total cost of $237,500, d. Total actual overhead cost was $79,000. Requirements 1. Compute the price and efficiency variances for direct materials and direct labor. (pp. 1168, 1170) 2. Journalize the usage of direct materials and the assignment of direct labor, including the related variances. (pp. 1175, 1177) 3. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. (Hint: Remember that the fixed overhead in the flexible budget equals the fixed overhead in the static budget.) (pp. 1173, 1174) 4. Mancini's management intentionally purchased superior materials for November production. How did this decision affect the cost vari ances? Overall, was the decision wise? (p. 1171) ing P23-338 Mancini manufactures embroidered jackets. The company prepares flex ible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a jacket is based on static budget volume of 14,000 jackets per month: Direct mariah (3.0 sq.34.00 per $12.00 18.00 Direct labor 12 hours 39.40 per houd Manufacturing overhead $1.30 Wble (2 hours 30.65 per hour $2.20 per ho Fised (2 hours 4.40 5.70 Total cost per jacket $36.30 Actual cost and production information a. Actual production was 13,600 jackets. b. Actual direct materials usage was 2.8 square feet per jacket, at an actual price of $4.10 per square foot. c. Actual direct labor usage of 25,000 hours at a total cost of $237,500, d. Total actual overhead cost was $79,000. Requirements 1. Compute the price and efficiency variances for direct materials and direct labor. (pp. 1168, 1170) 2. Journalize the usage of direct materials and the assignment of direct labor, including the related variances. (pp. 1175, 1177) 3. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. (Hint: Remember that the fixed overhead in the flexible budget equals the fixed overhead in the static budget.) (pp. 1173, 1174) 4. Mancini's management intentionally purchased superior materials for November production. How did this decision affect the cost vari ances? Overall, was the decision wise? (p. 1171)

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Inputs Standard data for 1 jacket Rate Value Direct material 3 3... View the full answer