Question 1

Question 2

I'd appreciate the help on these, will leave a thumbs up!

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control, After much effort and analysis, you determined the following cost formules and gathered the following actual cost data for March: Actual Cost Cost Formula in March Utilities $16,500 + $0.16 per machine-hour $ 20,700 Maintenance $38,700 $1.60 per machine-hour $ 56,500 Supplies $0.50 per machine hour $ 7,300 Indirect labor $94.600 $1.50 per machine-hour $ 118,000 Depreciation $67,600 $ 69, 300 During March, the company worked 13,000 machine hours and produced 7000 units. The company had originally planned to work 15,000 machine-hours during March Required: 1. Calculate the activity variances for March 2. Calculate the spending variances for March 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 1,035 hours each month to produce 2,070 sets of covers. The standard costs associated with this level of production are: Per Set of Total Covers Direct materials $ 31,878 $ 15.40 Direct labor $ 6,210 Variable manufacturing overhead (based on direct labor-hours) $ 4,347 2.10 $ 20.50 3.00 During August, the factory worked only 500 direct labor-hours and produced 1700 sets of covers. The following actual costs were recorded during the month: Direct materials (5,000 yards) Direct labor Variable manufacturing overhead Total $ 25,500 $ 5,440 $ 4,080 Per Set of Covers $ 3.20 2.40 $20.60 At standard, each set of covers should require 2.0 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 (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.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