Stained Glass, Inc., makes jewelry boxes out of scrap stained glass material. Budget and actual information for July $2020,$ follows first for direct manufacturing overhead costs.

INFORMATION:

Direct manufacturing labor

Actual direct manufacturing labor costs $,$$$178,125$

Direct manufacturing labor efficiency variance $$7,500U$

Direct manufacturing labor flexible$-$budget variance $,$$$1,875F$

Budgeted price of direct manufacturing labor $,$$$15$ per hour

Manufacturing overhead

Total actual manufacturing overhead costs $$133,000$

Budgeted variable manufacturing overhead rate $$7$ per direct manufacturing labor$-$hour

Budgeted fixed manufacturing overhead rate $$5$ per direct manufacturing labor$-$hour

Budgeted fixed manufacturing overhead costs $$44,000$

QUESTIONS:

$1.$ For July $2020,$ calculate $($a$)$ the direct manufacturing labor price variance, $($b$)$ the actual number of direct manufacturing labor$-$hours used, $($c$)$ the flexible$-$budget amount for direct manufacturing labor, and $($d$)$ the direct manufacturing labor$-$hours allowed for the actual output produced.

$2.$ Calculate the spending and efficiency variances for total overhead.

$3.$ Describe how individual variable overhead items are controlled from day to day. Also, describe how individual fixed overhead items are controlled.

Answer rating: 100% (QA)

ANSWER 1 Calculations for July 2020 a Direct manufacturing labor price variance Budgeted price per h... View the full answer