Marvel Parts, Incorporated, 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, Incorporated, 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 1,035 hours each month to produce 2,070 sets of covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Total $ 31,878 $ 6,210 $ 4,347 Direct materials (5,000 yards) Direct labor Variable manufacturing overhead. Per Set of Covers $15.40 3.00 During August, the factory worked only 500 direct labor-hours and produced 1,700 sets of covers. The following actual costs were recorded during the month: Total $ 25,500 $5,440 $ 4,080 2.10 $20.50 Per Set of Covers $ 15.00 3.20 2.40 $20.60 At standard, each set of covers should require 2.0 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 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance F None U Marvel Parts, Incorporated, 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 1,035 hours each month to produce 2,070 sets of covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Total $ 31,878 $ 6,210 $ 4,347 Direct materials (5,000 yards) Direct labor Variable manufacturing overhead. Per Set of Covers $15.40 3.00 During August, the factory worked only 500 direct labor-hours and produced 1,700 sets of covers. The following actual costs were recorded during the month: Total $ 25,500 $5,440 $ 4,080 2.10 $20.50 Per Set of Covers $ 15.00 3.20 2.40 $20.60 At standard, each set of covers should require 2.0 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 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance F None U
Expert 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
-
4. (9 pts) For each of the following amino acids provide: a. The full structure under physiological conditions. b. The 3 and 1 letter codes. c. Draw the intermolecular interactions it would...
-
A Company is considering the possibility of buying a new machine: this machine cost 50000 dinars, and the value of the scrape of the machine at the end of the expected useful life is 3000 dinars of...
-
During one month, 45 preflight inspections were performed on an airplane at Southstar Airlines. 15 nonconformances were noted. Each inspection checks 50 items. Assuming 2 sigma off-centering, what...
-
Explain why each of the following statements about profit-maximizing competitive firms is incorrect. Restate each one correctly. a. A competitive firm will produce output up to the point where price...
-
Name five of the ten features and capabilities of a modern CNC machine control unit listed in the text.
-
A newly released smartphone operating system gives users an update notice every time they download a new app. The percentage P of users that have installed the new update after t days is given by (A)...
-
Jakes Roasted Peanuts, Inc., supplies snack foods. The business experienced the following events. a. Jakes Roasted Peanuts issued common stock after receiving cash from the sole stockholder. b. Cash...
-
The production function is Q = ALa Kb, where a > 0 and b > 0. a. The marginal product of labor is MPL = __________________ . b. The marginal product of capital is MPK = __________________ . c. The...
-
Blazingame Inc.'s capital components have the following market values. Debt Preferred Stock Common equity $34,790,000 18,700,000 50,890,000 Calculate the firm's capital structure and show the weights...
-
Euro Corporation, a U.S. corporation, operates through a branch in Germany. During 2022, the branch reported taxable income of $1,000,000 and paid German income taxes of $300,000. In addition, Euro...
-
Building B: Lease for 2 5 years with annual lease payments of $ 7 2 , 0 0 0 being made at the beginning of the year. Building C: Purchase for $ 6 8 1 , 0 0 0 cash. This building is larger than...
-
What is a Mission System (Producer) role?
-
Discuss the guidelines that project mangers can use to improve cash flow.
-
What is an Enabling System (Supplier) role?
-
What is a retention and why is it used in managing project work?
-
What is the difference between a system, a product, and a tool?
-
Based on the new Department of Labor guidelines (October 2022) - would Uber drivers be classified as employees or contractors? Fully explain your answer. Note: These are DOL guidelines and are not...
-
Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled
-
Flash Express purchases USB flash drives from suppliers and then applies corporate logos to the exterior of those flash drives for its customers. The company maintains a dedicated piece of equipment...
-
How do you compute the cost of goods manufactured?
-
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $8 per unit, and fixed expenses total $180,000 per year. Its operating results...
-
Explain what the following terms mean a. Accounts receivable f. Accounts payable b. Supplies g. Unearned service revenue c. Prepaid rent h. Service revenue d. Furniture i. Rent expense e. Accumulated...
-
Which columns of the accounting work sheet show unadjusted amounts? a. Trial balance b. Adjustments c. Income Statement d. Balance Sheet
-
Riley Insurance Agency reported the following items at May 31: Make Riley's closing entries, as needed, for these accounts. Sales and marketing expense Other assets Depreciation expense Long-term...
Study smarter with the SolutionInn App