Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648b5641975a_0596648b563ae0c9.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648b564b34bf_0606648b56455046.jpg)
Transcribed Image Text:
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials Direct labor 210,000 lbs. at $5.80 per lb. 207,900 lbs. at $5.60 per lb. 17,500 hrs. at $16.90 per hr. 17,900 hrs. at $17.10 per hr. Rates per direct labor hr., based on 100% of normal Factory overhead $67,570 variable cost $113,212 fixed cost capacity of 18,260 direct labor hrs.: Variable cost, $3.90 Fixed cost, $6.20 Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance Direct Materials Quantity Variance Favorable Favorable Favorable Total Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number, Direct Labor Rate Variance Direct Labor Time Variance. Total Direct Labor Cost Variance Unfavorable Unfavorable Unfavorable c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance Favorable Favorable Favorable b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favoral minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance Unfavorable Unfavorable Unfavorable c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factor variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance Favorable Unfavorable 5063 X Unfavorable Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials Direct labor 210,000 lbs. at $5.80 per lb. 207,900 lbs. at $5.60 per lb. 17,500 hrs. at $16.90 per hr. 17,900 hrs. at $17.10 per hr. Rates per direct labor hr., based on 100% of normal Factory overhead $67,570 variable cost $113,212 fixed cost capacity of 18,260 direct labor hrs.: Variable cost, $3.90 Fixed cost, $6.20 Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance Direct Materials Quantity Variance Favorable Favorable Favorable Total Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number, Direct Labor Rate Variance Direct Labor Time Variance. Total Direct Labor Cost Variance Unfavorable Unfavorable Unfavorable c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance Favorable Favorable Favorable b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favoral minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance Unfavorable Unfavorable Unfavorable c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factor variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance Favorable Unfavorable 5063 X Unfavorable
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Consider the rigid aircraft in planar flight indicated below with points P and R separated by distance L. Known measurement data includes components of translational velocity and acceleration vectors...
-
Barry Egan is a currency speculator. Barry believes that the Japanese yen will fluctuate widely against the U.S. dollar in the coming month. Currently, one-month call options on Japanese yen () are...
-
On December 31, 2015, the following data were accumulated to assist the accountant in preparing the adjusting entries for Blue Realty: a. Fees accrued but unbilled at December 31 are $8,000. b. The...
-
Are stages with well-mixed liquids less or more efficient than stages with plug flow of liquid (assume \(\mathrm{K}_{\mathrm{G}} \mathrm{a}\) are the same)? Explain your result with a physical...
-
A sports apparel company has received an order for a college basketball teams national championship T-shirt. The company can purchase the T-shirts from textile factories in Mexico, Puerto Rico, and...
-
manufactures specialised high-tech products for a variety of customers including those in the aerospace, military, and medical industries. The operations manager at wants to prepare an Aggregate...
-
BE The circuit using BJT with B=50 and VB=0.7 V is shown in the figure. The base current I and collector voltage Vare respecively
-
Note: You may make necessary assumptions to solve the problem, but they must be clearly stated. Question 2 Jamie and Alex, a married couple, have been operating their food truck, Silver Spoon...
-
1. Is it customary for a company like HCP to hold quarterly review meetings without having representation from its contractor, SoftSmart? 2. Can project status be determined without the use of...
-
Much Meat Processing Corporation is a major processor of pork, and must determine whether to sell pork chops with the bone in or to process them further into pork tenderloin and porkloin. Management...
-
The HIT Innovation Steering Committee of a large, integrated healthcare system is in the process of examining the potential impact for new emerging technologies. The Committee is aware that HIT is...
-
Assume that everyone in America has finally agreed that we must have universal health care in the United States within the next 3 years. You have been appointed by the U.S Department of Health and...
-
Revise the heap definition of max-heap() to implement a min-heap().
-
Halley's comet travels in an ellipti- cal orbit with a = 17.95 and b = 4.44 and passes by Earth roughly every 76 years. Note that each unit represents one astronomical unit, or 93 million miles. The...
-
Taylor Company makes a variety of furniture. It is organized in two divisions, Office and Home. Home Division normally sells to outside customers but, on occasion, also sells to the Office Division....
-
Petes Taxi & Limo provides transportation services in and around Centerville. Its profits have been declining, and management is planning to add a package delivery service that is expected to...
-
Define cash equivalents and give three examples.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App