Bramble, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bramble, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Standard Price Standard Quantity Standard Cost Direct materials $3 per yard 2.00 yards $6.00 Direct labor $14 per DLH 0.75 DLH 10.50 Variable overhead $3.20 per DLH 0.75 DLH 2.40 Fixed overhead $3 per DLH 0.75 DLH 2.25 $21.15 Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased 81,300 yards of fabric and used 92,900 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $450,800, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 593,000 shirts, using 443,000 direct labor hours. Though the budget for November was based on 44,800 shirts, the company actually produced 41,300 shirts during the month. Variable Overhead Budget November-Actual Annual Budget Per Shirt Indirect material $453,000 $1.20 $48,700 Indirect labor 301,000 0.75 31,400 Equipment repair 197,000 0.30 20,400 Equipment power 52,000 0.15 7,300 Total $1,003,000 $2.40 $107,800 Fixed Overhead Budget Annual Budget November-Actual Supervisory salaries $258,000 $21,600 Insurance 349,000 27,600 Property taxes 77,000 6,200 Depreciation 319,000 25,700 Utilities 220,000 20,600 Quality inspection 277,000 24,900 Total $1,500,000 $126,600 (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter O for the amounts.) (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter O for the amounts.) $ 18580 Direct material price variance Favorable $ Direct material quantity variance (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) Direct labor rate variance Direct labor efficiency variance $ (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance $ (d) Calculate the fixed overhead spending variance for November. (Round answer to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) Fixed overhead spending variance $ Bramble, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Standard Price Standard Quantity Standard Cost Direct materials $3 per yard 2.00 yards $6.00 Direct labor $14 per DLH 0.75 DLH 10.50 Variable overhead $3.20 per DLH 0.75 DLH 2.40 Fixed overhead $3 per DLH 0.75 DLH 2.25 $21.15 Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased 81,300 yards of fabric and used 92,900 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $450,800, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 593,000 shirts, using 443,000 direct labor hours. Though the budget for November was based on 44,800 shirts, the company actually produced 41,300 shirts during the month. Variable Overhead Budget November-Actual Annual Budget Per Shirt Indirect material $453,000 $1.20 $48,700 Indirect labor 301,000 0.75 31,400 Equipment repair 197,000 0.30 20,400 Equipment power 52,000 0.15 7,300 Total $1,003,000 $2.40 $107,800 Fixed Overhead Budget Annual Budget November-Actual Supervisory salaries $258,000 $21,600 Insurance 349,000 27,600 Property taxes 77,000 6,200 Depreciation 319,000 25,700 Utilities 220,000 20,600 Quality inspection 277,000 24,900 Total $1,500,000 $126,600 (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter O for the amounts.) (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter O for the amounts.) $ 18580 Direct material price variance Favorable $ Direct material quantity variance (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) Direct labor rate variance Direct labor efficiency variance $ (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance $ (d) Calculate the fixed overhead spending variance for November. (Round answer to O decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter O for the amounts.) Fixed overhead spending variance $
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Stratton, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Sandy Robison, operations...
-
Gerald/Brooke, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Bobby Brickley, operations...
-
A close company which prepares accounts to 31 March each year is owned and managed by a single shareholder/director who is not a Scottish taxpayer and who is paid a salary of 5,000 per month. In...
-
A new high-efficiency home heating system includes an air-to-air heat exchanger which uses energy from outgoing stale air to heat the fresh incoming air. If the outside ambient temperature is -10C...
-
Find the area of the region that is bounded by the given curve and lies in the specified sector. (a) r = e -/4, /2 (b) r2 = 9 sin 2, r 0, 0 /2
-
Find the Fourier transform of the functions shown in Figs. 14.27 and plot the corresponding spectrum. Figure 14.27:- x(t) A Ae-aln FIGURE 14.27 Function considered in Problem 14.15.
-
C-Spec, Inc., is attempting to determine whether an existing machine is capable of milling an engine part that has a key specification of 4 6 .003 inches. After a trial run on this machine, C- Spec...
-
How could this situation be examined under the lens of business law and criminal law in general? Explain what due diligence means in this context. How could allegations of sexual assault at work be...
-
Ira Icandoit is a staff auditor in the internal audit function of a small manufacturing company located in western Kansas. Ira recently completed a professional development course on a statistical...
-
At Enron Energy Services, many of the contracts were overvalued, as the energy loads required by its customers were based on guesswork and excessively optimistic assumptions. True/False
-
WorldCom improperly accounted for its line cost expense by: (a) Allocating line-cost expense to PPE in its first recording of the line-cost transactions. (b) Initially properly debiting the line-cost...
-
If a parent company discovers that the assets of an acquired company are worth less than it believed at the time of the acquisition, it is appropriate to increase goodwill because this means that the...
-
Complete the MPS record shown in Figure 11.30 for a single item. Item: A Quantity on Hand: Forecast Customer orders (booked) Projected on-hand inventory MPS quantity MPS start 75 1 65 January 2 65 40...
-
The decline of a companys asset-turnover ratio is an indication that assets are impaired. True/False
-
Prepare the Bartrand Irrigation Systems statement of retained earnings for the year ended December 31, 2016. Enter any increases in retained earnings prior to the subtotal and any decreases to...
-
Why is a help desk and production support critical to system implementations? Discuss its interrelationship with the problem management and reporting system.
-
Discuss the significance of discounting in business decision making.
-
What are the main components of corporate directional strategies?
-
Discuss the advantages of real options over other capital budgeting evaluation techniques.
Study smarter with the SolutionInn App