Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,045 hours each month to produce 2,090 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $23.70 Total $ 49,533 $ 10,450 Direct materials Direct labor 5.00 Variable manufacturing overhead (based on direct labor-hours) $ 4,598 2.20 $30.90 During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $23.40 Total $ 44,460 $9,880 Direct materials (6,500 yards) Direct labor 5.20 Variable manufacturing overhead $ 4,560 2.40 $31.00 Variable manufacturing overhead $ 4,560 2.40 $31.00 At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 1. Materials price variance Materials quantity variance 12. Labor rate variance Labor efficiency variance 3. Variable overhead rate variance Variable overhead efficiency variance Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,045 hours each month to produce 2,090 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $23.70 Total $ 49,533 $ 10,450 Direct materials Direct labor 5.00 Variable manufacturing overhead (based on direct labor-hours) $ 4,598 2.20 $30.90 During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $23.40 Total $ 44,460 $9,880 Direct materials (6,500 yards) Direct labor 5.20 Variable manufacturing overhead $ 4,560 2.40 $31.00 Variable manufacturing overhead $ 4,560 2.40 $31.00 At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 1. Materials price variance Materials quantity variance 12. Labor rate variance Labor efficiency variance 3. Variable overhead rate variance Variable overhead efficiency variance
Expert Answer:
Answer rating: 100% (QA)
Budgeted Standard Actual QuantityHrs Rate Amount QuantityHrs Rate Amount QuantityHrs Rate Amount Mat... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most...
-
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most...
-
Mosbach Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most...
-
Which of the following is not a suggested procedure to establish internal control over cash disbursements? The bank statement is reconciled monthly. Anyone can sign the checks. Blank checks are...
-
Give three examples of how managers may improve short-run performance to the detriment of long-run results.
-
Suppose you are a salesperson working 50 weeks per year, five days a week, eight hours a day. You want to make \($50,000\) per year, which is based on a 10 percent commission of gross sales. How many...
-
What are the requirements of a modern surface condenser ?
-
Branson paid $465,000 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2011. On that date, the subsidiary had a book value of $340,000 ( common stock of $200,000 and...
-
(a) Suppose we have the following production function: Q = K/3L2/3 Suppose K is fixed in the short- run at 27. State the firm's short-run cost minimization problem given the fixed input. Discuss. (b)...
-
1. What is your assessment of the financial performance of Nelson Nurseries? 2. Do you agree with Christine Barton?s accounts-payable policy? 3. What explains the erosion of the cash balance? 4. What...
-
18) Which of the following statements correctly describes the term conversion costs? A) the cost to convert finished goods to sales to customers B) the cost of direct materials, direct labor, and...
-
An indorsement that limits the transfer of an instrument to a particular person or for a particular purpose. a. bearer ins trument b. blank indors ement c. counterclaim d. dishonorment e. holder in...
-
Obtain the complement function for the match logic of one word in an associative memory. In other words, show that M' i is the sum of exclusive-OR functions. Draw the logic diagram for M' i and...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. The Uniform Commercial Code attributes an implied warranty to an indorsed instrument that...
-
A law that sets minimum standards for water purity. a. National Environmental Policy Act b. environmental impact Statement c. Environmental Protection Agency d. Clean Air Act e. Clean Water Act f....
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. An indorser of an instrument is released from liability by any act that discharges the...
-
A related criticism on GDP is that it is not a good measure of human development, which the United Nations describes as the "expansion of people's freedoms to live long, healthy and creative lives."...
-
Per Bag Direct materials: 25 pounds of CWhiz-2000 @ $0.08/lb. = $ 2.00 Direct labor: 0.05 hour @ $32.00/hr. = $ 1.60 The company manufactured 100,000 bags of Cheese-Be-Good in December and used...
-
During Heaton Companys first two years of operations, it reported absorption costing net operating income as follows: The companys $18 unit product cost is computed as follows: Production and cost...
-
Refer to the financial statements for Rusco Company in Problem 1513. Because the Cash account decreased so dramatically during this year, the companys executive committee is anxious to see how the...
-
What effect does an increase in the activity level have on a. Average fixed costs per unit? b. Variable costs per unit? c. Total fixed costs? d. Total variable costs?
-
Using a financial calculator, solve for the unknowns in each of the following situations. a. On June 1, 2024, Holly Golightly purchases lakefront property from her neighbor, George Peppard, and...
-
Sally W. Emanual, a teacher, had the following dividends and interest during 2022: Additional information pertaining to Sally Emanual includes The taxable portion of the pension is \($7,000.\) Sally...
-
Ed owns Oak Knoll Apartments. During the year, Fred, a tenant, moved to another state. Fred paid Ed \($1,000\) to cancel the two-year lease he had signed. Ed subsequently began renting the unit to...
Study smarter with the SolutionInn App