Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars. According to its standards, the factory should work 1,000 hours each month to produce 2,000 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 41,400 Direct labor $ 8,000 Per Set of Covers $ 20.70 4.00 Variable manufacturing overhead (based on direct labor-hours) $ 3,400 1.70 $ 26.40 During August, the factory worked 1,050 direct labor-hours and produced 2,400 sets of covers. The following actual costs were recorded during the month: Total Direct materials (7,500 yards) Direct labor $ 48,000 $ 10,080 Variable manufacturing overhead $ 5,040 Per Set of Covers $ 20.00 4.20 2.10 $ 26.30 At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars. According to its standards, the factory should work 1,000 hours each month to produce 2,000 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 41,400 Direct labor $ 8,000 Per Set of Covers $ 20.70 4.00 Variable manufacturing overhead (based on direct labor-hours) $ 3,400 1.70 $ 26.40 During August, the factory worked 1,050 direct labor-hours and produced 2,400 sets of covers. The following actual costs were recorded during the month: Total Direct materials (7,500 yards) Direct labor $ 48,000 $ 10,080 Variable manufacturing overhead $ 5,040 Per Set of Covers $ 20.00 4.20 2.10 $ 26.30 At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
Expert Answer:
Answer rating: 100% (QA)
1 Materials Price and Quantity Variances for August Materials Price Variance Standard price per yard ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
Information about case report #1 1.Case: Acpana Business Systems Inc.: Effect of Currency Exposure on Revenue 2.Due time: 12:00 pm, July 7, 2020. 3.Your case report MUST be typed, and must be...
-
Following are the Balance Sheet accounts for Year 1 of ABC Company: Accounts Payable Accounts Receivable Bond Payable Cash Equipment Inventory Wages Payable $10,000 12,000 50,000 8,000 80,000 14,000...
-
Frank F . X . Gong, chief economist for China at J . P . Morgan has forecast that the Yuan will rise to 7 . 7 4 Yuan / $ by the end of 2 0 0 5 and to 7 . 2 Yuan / $ by the end of 2 0 0 6 . If the...
-
BA%20508%202022%20Sprg%20Group%20Proj%202%20instructions.pdf ^ Total variable OH incurred during the year was $83,420 and total fixed OH incurred was $140,540. OH gets applied to products using...
-
1. What were the advantages and disadvantages of Daewoos original strategy of manufacturing goods for marketing by other companies under the brand names of those companies? 2. Was Daewoos original...
-
Given the circuit in Fig. 2.78, use KVL to find the branch voltages V1 to V4. 5 V
-
Taking the LP formulation of the transfer pricing problem of the Jayfax Company as your starting point, analyse the effect of having an additional constraint that limits the total production of A 2...
-
Enders, Inc., a domestic corporation that invests in foreign securities, reports total taxable income for the tax year of $290,000, consisting of $208,800 in U.S.-source business profits and $81,200...
-
5.5 Insurance. The idea of insurance is that we all face risks that are unlikely but carry high cost. Think of a fire or flood destroying your apartment. Insur- ance spreads the risk: we all pay a...
-
Cassie began trading on 1 July 2020. For the 7 months to 31 January 2021, she made potentially taxable supplies (standard rated) totalling 56,500, and zero-rated supplies amounting to 20,000. Over...
-
Studies have found that managers spend about percent of their time resolving workplace conflicts. a. 2 b. 9 c. 13 d. 25
-
Discuss the major challenges a firm should expect when implementing an integrated ERP system, including financial, supply chain, service, and human resource applications.
-
Briefly explain the differences between a preventive control, a detective control, and a corrective control. Give an example of each.
-
In a manufacturing setting, employees whose performance is similar to the standard performance of other employees (i.e., group norm) who perform similar tasks are said to be operating in the...
-
Briefly describe the different types of unlawful events that can occur in a system.
-
TGA Processing plans to produce and sell potato chips to its customers in West Malaysia. The factory consists of 5 departments: Storage, Production, Maintenance, Quality Control and Warehouse. The...
-
Could the owner of a business prepare a statement of financial position on 9 December or 23 June or today?
-
In this chapter, we discussed the personal qualifications, educational requirements, and experience requirements of different countries. Develop a matrix that includes countries down one side and the...
-
Why are the audits of most of the largest global companies done by the Big Five auditing firms?
-
What are some of the challenges global auditing firms face in trying to service their clients?
Study smarter with the SolutionInn App