Topic: Variance analysis Patio Corp manufactures residential home decks. The company has budgeted the production of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Topic: Variance analysis Patio Corp manufactures residential home decks. The company has budgeted the production of 15 home decks in the period. Standard prices for materials (pine wood) and labour are as follows: $18 per metre for pine wood and $30 per hour for direct labour. Each deck was expected to use 31 hours of direct labour and 160 metres of pine wood. During July, Patio Corp built 11 decks, using total 2160 metres of pine wood and 300 direct labour hours. The actual price for pine wood and labour are as follows: $14 per meter for pine wood and $24 per hour for direct labour. Required: Compute: 1. The standard cost of completing one deck. (Assume every deck built is identical.) 2. The direct materials price variance; Be sure to label each variance is favorable (F) or unfavorable (U). 3. The direct materials quantity/efficiency variance; 4. The direct labour price variance; 5. The direct labour efficiency variance. 6. After having seen the calculations of the variances, the company's manager is excited by the results. But the manager was confused because members of the sales team were getting customer complaints. Comment briefly. Should the manager be excited? Explain very briefly. Use point form. Do not worry about grammar. Topic: Variance analysis Patio Corp manufactures residential home decks. The company has budgeted the production of 15 home decks in the period. Standard prices for materials (pine wood) and labour are as follows: $18 per metre for pine wood and $30 per hour for direct labour. Each deck was expected to use 31 hours of direct labour and 160 metres of pine wood. During July, Patio Corp built 11 decks, using total 2160 metres of pine wood and 300 direct labour hours. The actual price for pine wood and labour are as follows: $14 per meter for pine wood and $24 per hour for direct labour. Required: Compute: 1. The standard cost of completing one deck. (Assume every deck built is identical.) 2. The direct materials price variance; Be sure to label each variance is favorable (F) or unfavorable (U). 3. The direct materials quantity/efficiency variance; 4. The direct labour price variance; 5. The direct labour efficiency variance. 6. After having seen the calculations of the variances, the company's manager is excited by the results. But the manager was confused because members of the sales team were getting customer complaints. Comment briefly. Should the manager be excited? Explain very briefly. Use point form. Do not worry about grammar.
Expert Answer:
Answer rating: 100% (QA)
Sure lets break it down 1 Standard cost of completing one deck Direct materials 18m 160m 2880 Direct ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
Students also viewed these accounting questions
-
Lucena Manufacturing Co. charges factory overhead to production at 80% of direct labor cost. Jobs 842 and 843 were completed and sold in July, 20B. Total direct materials cost and prime cost for Job...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Evenflow Power Co. is considering a new project that is a little riskier than the current operations of the company. Thus, management has decided to add an additional 1.5% to the company's overall...
-
Are there common factors among the weldability, solderability, castability, formability, and machin-ability of metals? Explain giving appropriate examples?
-
The Cash account of Renfro Corporation showed a balance of $21,749 at December 31 prior to preparing a bank reconciliation. The companys bank statement showed a balance of $22,000 at the same date....
-
The following information is available for Virginia Company: Calculate the following ratios for 2019: a. Gross profit percentage b. Return on sales c. Asset turnover d. Return on assets e. Return on...
-
Complete the operating income, ending assets invested, average assets invested, and residual income calculations, for investment centers H andF: Subsidiary H $20,000 S1,500 S4,000 S6,000 Subsidiary F...
-
Find out two Fads, two Trends and one Megatrends of any industry. please give correct answer don't copy from ai or any thing if know correct then answer if not leave it other wise i will report don't...
-
Ryan Ross (111-11-1112), Oscar Omega (222-22-2223), Clark Carey (333-33-3334), and Kim Kardigan (444-44-4445) are equal active members in ROCK the Ages LLC. ROCK serves as agent and manager for...
-
2 Sketch the root locus for the characteristic equation A(s) = 1 + kpGp, where 1 s(s + 2s +5)* Hint: You can check your answer using the rlocus (sys) command in MATLAB, where sys= Gp. a Plot the...
-
Explain virtual number of teeth on helical gears.
-
What are the types of gear trains?
-
What is a class-II double-rocker mechanism?
-
What is the difference between a simple and compound gear train?
-
What are the properties of pole points?
-
explain if you're a nurse and you're reporting about a physician? Or vice versa?
-
Explain how the graph of each function can be obtained from the graph of y = 1/x or y = 1/x 2 . Then graph f and give the (a) Domain (b) Range. Determine the largest open intervals of the domain over...
-
Asaya Clothing Inc. is a manufacturer of winter clothes. It has a Knitting department and a Finishing department. This exercise focuses on the Finishing department. Direct materials are added at the...
-
The Energy Products Company produces a gasoline additive, Gas Gain that increases engine efficiency and improves gasoline mileage. The actual and budgeted quantities (in litres) of materials required...
-
Beans Unlimited sells specialty coffees in 1-kilogram packages. Fixed costs are budgeted at $730,000 per year. For the upcoming year, revenues are forecasted to be $3,240,000 (selling price is $36...
-
Who trades with the United States?
-
What factors might explain the differential in average income between men and women?
-
Decisions as to the allocation of human organs for transplant are based on characteristics such as blood type, weight, and age;urgency of need; and length of time on the waiting list (quoted from the...
Study smarter with the SolutionInn App