The Chad Company produces and sells Bean Bag Chairs. Standards for the product follow: Direct materials, 8
Question:
The Chad Company produces and sells Bean Bag Chairs. Standards for the product follow:
Direct materials, 8 yards at $2.00 per yard
• Variable overhead. % direct labor hour at $2 per direct labor hour
• Fixed overhead, % direct labor hour at S6 per direct labor hour
• Standards are based on 24.000 budgeted direct labor hours per year
The company manufactured and sold 44.000 units of product during the year. A total of 360.000 yards of material was purchased and used during the year at a cost of $2.25 per yard The company worked 23.500 direct labor hours during the year at a rate of 58.10 per how, Actual variable overhead costs were S45,000 Actual fixed overhead costs were $143.000.
Indicate favorable variances with an F and unfavorable variances with a U.
1. Direct materials price variance:
2. Direct materials quantity variance:
3. Direct labor rate variance;
4. Direct labor efficiency variance:
5. Variable overhead spending variance
6. Variable overhead efficiency variance:
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin