Question: PA9-5 Calculating Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances [LO 9-3, 9-4, 9-5] Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Quantity
PA9-5 Calculating Direct Materials, Direct Labor, Variable Manufacturing Overhead Variances [LO 9-3, 9-4, 9-5]
Bullseye Company manufactures dartboards. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (cork board) | 2.5 | sq. ft. | $ | 2.00 | per sq. ft. | $ | 5.00 | |
| Direct labor | 1 | hrs. | $ | 14.00 | per hr. | 14.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1 | hrs. | $ | 0.50 | per hr. | 0.50 | ||
| Fixed manufacturing overhead ($40,000 160,000 units) | 0.25 | |||||||
Bullseye has the following actual results for the month of September:
| Number of units produced and sold | 140,000 | |
| Number of square feet of corkboard used | 360,000 | |
| Cost of corkboard used | $ | 756,000 |
| Number of labor hours worked | 148,000 | |
| Direct labor cost | $ | 1,938,800 |
| Variable overhead cost | $ | 72,000 |
| Fixed overhead cost | $ | 50,000 |
Required: 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) 2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) 3. Calculate the variable overhead rate, efficiency, and total spending variances for Bullseye. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts