Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,040 hours each month to produce 2,080 sets of covers. The standard costs associated with this level of production are: Per Set of Total Covers $ 40,560 $ 7,280 Direct materials $ 19.50 Direct labor 3.50 Variable manufacturing overhead (based on direct labor-hours) $ 4,160 2.00 $ 25.00 During August, the factory worked only 600 direct labor-hours and produced 1,800 recorded during the month: ets of covers. The following actual costs were Per Set of Total Covers $ 34,200 $ 6,660 $ 4,140 Direct materials (5,000 yards) $ 19.00 Direct labor 3.70 Variable manufacturing overhead 2.30 $ 25.00 At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used in production. At standard, each set of covers should require 2.5 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. (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.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,040 hours each month to produce 2,080 sets of covers. The standard costs associated with this level of production are: Per Set of Total Covers $ 40,560 $ 7,280 Direct materials $ 19.50 Direct labor 3.50 Variable manufacturing overhead (based on direct labor-hours) $ 4,160 2.00 $ 25.00 During August, the factory worked only 600 direct labor-hours and produced 1,800 recorded during the month: ets of covers. The following actual costs were Per Set of Total Covers $ 34,200 $ 6,660 $ 4,140 Direct materials (5,000 yards) $ 19.00 Direct labor 3.70 Variable manufacturing overhead 2.30 $ 25.00 At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used in production. At standard, each set of covers should require 2.5 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. (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.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance
Expert Answer:
Answer rating: 100% (QA)
Standard materials price per yard 78 19525 Standard labor hour per unit 05 10402080 Standa... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
Students also viewed these accounting questions
-
Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most...
-
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most...
-
Mosbach Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most...
-
The core problem of a command-and-control approach to environmental policy is its inherent bias or tendency to standard-setting practice that is uniformly applicable to all situations. For example,...
-
Describe the general mechanism used by superantigens to activate T cells. How does superantigen activation differ from T cell activation by conventional antigens?
-
Dominique is single. She is filling out the Social Security worksheet so she can determine the amount of her Social Security benefits that she will pay federal income tax on. Fill in the following...
-
Discuss how you would use information systems to support succession planning.
-
On September 3, 2011, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: To equalize the exchange, Phifer paid Robers $5,000 in cash. Required:...
-
Based on the following information, compute cash flows from financing activities. Purchase of short-term investments Dividends paid Interest paid Additional short-term borrowing from bank $ 630 890...
-
You're very bullish about NVDA and want to initiate a bull spread with the company's stock options. The premium for options that mature in 6 months with OTM calls and OTM puts are as follow: Calls:...
-
This advertisement by "Reporters without Borders" (a non-profit group that supports free media globally) refers to the manipulation of media by Vladimir Putin's government. The message says,...
-
Compare and contrast two concepts, theories, and/or models of group dynamics. In your comparison, assess the importance of each for overall team effectiveness. Then explain how you would apply one of...
-
Explain how different elements of group dynamics influence the functioning and effectiveness of groups and teams. Articulate three reasons why manager must have access to information to perform their...
-
Generally, Crises affect businesses negatively and therefore, many businesses revise their policies to cope with the challenging situation. Currently, COVID-19 adversely affects almost every business...
-
Discuss why group dynamics should be taken into consideration when managing a meeting.
-
Evaluate the Sample Marketing Plan PDF for XYZ Energy Drink: One-Year Digital Marketing Campaign for XYZ Energy Drink Q1: We perform an audience audit to evaluate where the audience communicates...
-
Given two vectors A = 3.80 +6.90 and B = 5.10-1.903, find the scalar product of the two vectors A and B. A B = 6.27 Submit Correct Part B Previous Answers Find the angle between these two vectors....
-
1. Advertising for eyeglasses _________ (increases/decreases) the price of eyeglasses because advertising promotes _________. 2. An advertisement that succeeds in getting consumers to try the product...
-
The following information is for Kon Inc. for the year ended December 31, 2018: Common shares, Jan. 1.......................$20,000 Common shares issued during year..........10,000 Retained earnings,...
-
Refer to the financial statements presented in P13.5B for Nackawic Inc. In P 13.5 B Instructions (a) Prepare the statement of cash flows using the direct method. (b) Nackawic's cash position...
-
The following items are from the liability and shareholders' equity sections of WestJet Airlines Ltd. s December 31, 2015, statement of financial position (in thousands): Accounts payable and accrued...
-
What percentage of women have red blood cell counts in the normal range from 4.2 to 5.4? Assume that red blood cell counts of women are normally distributed with a mean of 4.577 and a standard...
-
Find P 80 , the 80th percentile for the red blood cell counts of women.
-
A new integrated circuit board is being developed for use in computers. In the early stages of development, a lack of quality control results in a 0.2 probability that a manufactured integrated...
Study smarter with the SolutionInn App