Jeffrey Dickens is a cost accountant and business analyst for Datura Design Company (DDC), which manufactures...
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Jeffrey Dickens is a cost accountant and business analyst for Datura Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labour. Dickens feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon kilograms of materials used (Click the icon to view the standards.) (Click the icon to view the actual results for April.) Required Requirement 1. For the month of April, computo the variances, indicating whether each is favourable (F) or unfavourable (U). a. Direct materials price variance (based on purchases) is b. The direct materia's efficiency variance is c. The direct manufacturing labour price variance is d. The direct manufacturing labour efficiency variance is e. The variable manufacturing overhead spending variance is + The ho manifart winnerhend clon Choose from any list or enter any number in the input fields and then continue to the next question. f. The variable manufacturing overhead efficiency variance is g. The production-volume variance is h. The fixed manufacturing overhead spending variance is Requirement 2. Can Dickens use any of the variances to help explain any of the other variances? Give examples. The direct materials price variance indicates that DDC paid than expected (anding to a(n) | for brass than they had planned. If this is because they purchased a material efficiency variance). quality brass, it may explain why they used brass The purchase of this quality of brass may also explain why it look labour time to produce the doorknobs than expected (the direct labour officiency variance). Choose from any list or enter any number in the input fields and then continue to the next question. h. The fixed manufacturing overhead sponding variance is Requirement 2. Can Dickens use any of the variances to help explain any of the other variances? Give examples The direct materials price variance Indicates that DDC paid than expected (leading to a(n) The purchase of this quality of brass may also explain why it took for brass than they had planned. If this is because they purchased a material efficiency variance). quality brass, it may explain why they used brass labour time to produce the doorknobs than expected (the Finally, the direct labour price variance could imply that the workers who were hired were direct labour efficiency variance). experienced than expected, which could also be related to the direct material and direct labour officiency variances. estion Data Table Actual results for April 2017 were as follows: Production Direct materials purchased Direct materials used Direct manufacturing labour Variable manufacturing overhoad Fixed manufacturing overhead - Data Table - X ories: direct materials and dire At the beginning of 2017, DDC budgeted annual production of 400,000 doorknobs and adopted the following standards for each doorknob: Input Cost/Doorknob 31,000 doorknobs 12,200 kg at $12/kg. 7.500 kgs. Direct materials (brass) Direct manufacturing labour Manufacturing overhead 0.3 kg. @$10/kg. $ 3.00 1.2 hours @ $19/hour 22.80 29,300 hours for $615,300 Variable $64,600 Flood $155,000 $7/kg. x 0.3 kg $14/kg. x 0.3 kg. 2.10 4.20 $ 32.10 Standard cost per doorknob Print Done . The fixed manufacturing overhead spending variance is Required 1. For the month of April, compute the following variances, indicating whether each is favourable (F) or unfavourable (U). a. Direct materials price variance (based on purchases) c. Direct manufacturing labour price variance tequirement 2. Can Dickans use any of the variances to help explain any of the other variances? Give The direct materials price variance indicates that DDC paid efficiency variance) for brass than they had planned. If b. Direct materials efficiency variance labour time to produce the do direct labour price variance could imply that the workers who were hired we The purchase of this quality of brass may also explain why it took Finally, the hoose from any list or enter any number in the input fields and then continue to the next questi d. Direct manufacturing labour efficiency variance e. Variable manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance h. Fixed manufacturing overhead spending variance 2. Can Dickens use any of the variances to help explain any of the other variances? Give examples Print Done X brass th terial and Jeffrey Dickens is a cost accountant and business analyst for Datura Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labour. Dickens feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon kilograms of materials used (Click the icon to view the standards.) (Click the icon to view the actual results for April.) Required Requirement 1. For the month of April, computo the variances, indicating whether each is favourable (F) or unfavourable (U). a. Direct materials price variance (based on purchases) is b. The direct materia's efficiency variance is c. The direct manufacturing labour price variance is d. The direct manufacturing labour efficiency variance is e. The variable manufacturing overhead spending variance is + The ho manifart winnerhend clon Choose from any list or enter any number in the input fields and then continue to the next question. f. The variable manufacturing overhead efficiency variance is g. The production-volume variance is h. The fixed manufacturing overhead spending variance is Requirement 2. Can Dickens use any of the variances to help explain any of the other variances? Give examples. The direct materials price variance indicates that DDC paid than expected (anding to a(n) | for brass than they had planned. If this is because they purchased a material efficiency variance). quality brass, it may explain why they used brass The purchase of this quality of brass may also explain why it look labour time to produce the doorknobs than expected (the direct labour officiency variance). Choose from any list or enter any number in the input fields and then continue to the next question. h. The fixed manufacturing overhead sponding variance is Requirement 2. Can Dickens use any of the variances to help explain any of the other variances? Give examples The direct materials price variance Indicates that DDC paid than expected (leading to a(n) The purchase of this quality of brass may also explain why it took for brass than they had planned. If this is because they purchased a material efficiency variance). quality brass, it may explain why they used brass labour time to produce the doorknobs than expected (the Finally, the direct labour price variance could imply that the workers who were hired were direct labour efficiency variance). experienced than expected, which could also be related to the direct material and direct labour officiency variances. estion Data Table Actual results for April 2017 were as follows: Production Direct materials purchased Direct materials used Direct manufacturing labour Variable manufacturing overhoad Fixed manufacturing overhead - Data Table - X ories: direct materials and dire At the beginning of 2017, DDC budgeted annual production of 400,000 doorknobs and adopted the following standards for each doorknob: Input Cost/Doorknob 31,000 doorknobs 12,200 kg at $12/kg. 7.500 kgs. Direct materials (brass) Direct manufacturing labour Manufacturing overhead 0.3 kg. @$10/kg. $ 3.00 1.2 hours @ $19/hour 22.80 29,300 hours for $615,300 Variable $64,600 Flood $155,000 $7/kg. x 0.3 kg $14/kg. x 0.3 kg. 2.10 4.20 $ 32.10 Standard cost per doorknob Print Done . The fixed manufacturing overhead spending variance is Required 1. For the month of April, compute the following variances, indicating whether each is favourable (F) or unfavourable (U). a. Direct materials price variance (based on purchases) c. Direct manufacturing labour price variance tequirement 2. Can Dickans use any of the variances to help explain any of the other variances? Give The direct materials price variance indicates that DDC paid efficiency variance) for brass than they had planned. If b. Direct materials efficiency variance labour time to produce the do direct labour price variance could imply that the workers who were hired we The purchase of this quality of brass may also explain why it took Finally, the hoose from any list or enter any number in the input fields and then continue to the next questi d. Direct manufacturing labour efficiency variance e. Variable manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance h. Fixed manufacturing overhead spending variance 2. Can Dickens use any of the variances to help explain any of the other variances? Give examples Print Done X brass th terial and
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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