Principal Managerial Chapter 8

x Data table Direct materials (cloth) Direct labor Variable overhead 20,200 yards @ $2.10 per yard 2,800 hours @ $13.00 per hour $5,300 Fixed overhead 99,000 Data table Direct materials (cloth) Direct labor Variable overhead 2 yard(s) per book bag @ $2.10 per yard 0.80 direct labor hours per book bag @ $13.60 per direct labor hour 0.80 direct labor hours per book bag @ $1.90 per direct labor hour $96,800 (0.80 direct labor hours per book bag @ $11.00 per direct labor hour based on expected production of 11,000 book bags) Fixed overhead Wooten Company produced 10,000 book bags in June, and actual amounts were as follows: B (Click the icon to view the actual amounts.) Wooten's standards were as follows: E: (Click the icon to view the standards.) Requirements 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. 2. Compute the cost and volume variances for fixed overhead. ... Requirement 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Select the formulas to calculate direct materials cost and efficiency variances, then enter the variance amounts and the total. (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label each variance as favorable (F) or unfavorable (U). Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Formula Variance Direct materials cost variance Direct materials efficiency variance = II Total direct materials variance x Data table Direct materials (cloth) Direct labor Variable overhead 20,200 yards @ $2.10 per yard 2,800 hours @ $13.00 per hour $5,300 Fixed overhead 99,000 Data table Direct materials (cloth) Direct labor Variable overhead 2 yard(s) per book bag @ $2.10 per yard 0.80 direct labor hours per book bag @ $13.60 per direct labor hour 0.80 direct labor hours per book bag @ $1.90 per direct labor hour $96,800 (0.80 direct labor hours per book bag @ $11.00 per direct labor hour based on expected production of 11,000 book bags) Fixed overhead Wooten Company produced 10,000 book bags in June, and actual amounts were as follows: B (Click the icon to view the actual amounts.) Wooten's standards were as follows: E: (Click the icon to view the standards.) Requirements 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. 2. Compute the cost and volume variances for fixed overhead. ... Requirement 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Select the formulas to calculate direct materials cost and efficiency variances, then enter the variance amounts and the total. (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label each variance as favorable (F) or unfavorable (U). Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Formula Variance Direct materials cost variance Direct materials efficiency variance = II Total direct materials variance