Wear Well Products makes a line of countertop grills for making hamburgers and related grilled products like panini. The following table contains information about the production of its countertop grill for last month.

REQUIRED:

a. Using the table- based approach pictured in Table 7.7, decompose the variances for the month into price and usage variances. Do this for every cost element in the table.

b. How does performance for the month look? Explain your reasoning.

Table 7.7

Transcribed Image Text:

WearWell Products-Countertop Grill Results Standard Cost Estimates Actual Results Amount Allowed Standard Cost Materials Standard Rate Actual Rate Amount Used Actudl Cost Metal casing S200 per pound 3pounds $6.00 $2 0 per pound 32 pounds $6.72 Hinges $0.50 each 2 $1.00 S0.55 each 2 $1.10 Heating elements $5.0 each 2 $10.000 SA.75 each 2 $9.50 Ridged grill panels S0.75 each 2 $1.50 $0.80 each 2 $1.60 Hat grill panels $0.75 each 2 $1.50 $0.80 each 2 $1.60 Electric cord $125 each $1.25 SIBeach $1.15 Dials $0.40 each 3 $1.20 $0.45 each 3 $1.35 Screws and grommets S0.05 each $0.50 $O.04 each 12 $0.48 Total Materials at Standard $22.95 Actual Materials $23.50 Conversion and Other Activities Standard Amount Standard Rate Standard Cost Actual Rate Actual Cost Activity Stamp metd casing Amount Used $60.00 per hour 2minutes $2.00 $54.00 per hour 3minutes $2.70 Assemble gril SE00 per hour 5minutes $1.50 $I.00 per hour 6 minutes $1.50 Set up mochines SA8.00 per hour 8 minutes $6.40 $4500 per hour D minutes $7.50 Kit materials $4.00 per kit 3kits $12.00 $3.75 per kit 3kits $11.25 Inspection SR00 per hour 3minutes $0.90 $5.00 per hour 4 minutes $1.00 Packaging $.00 per hour 2minutes $0.50 SK.00 per hour 3 minutes $0.80 Standard Conversion and Activities $23.30 Actual Activities $24.75 Total Standard Cost $46.25 Total Actual Cost $48.25