Requirement $1.$ Compute the cost and efficiency variances for direct materials and direct labor.

standard cost; SQA $=$ standard quantity allowed. Label the variance as favorable $($F$)$ or unfavorable $($U$),$ in the input field after the amount you enter.$)$

fixed overhead; SC $=$ standard cost; SQA $=$ standard quantity allowed. Label the variance as favorable $($F$)$ or unfavorable $($U$),$ in the input field after the amount you enter.$)$

Requirement $2.$ For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances.

fixed overhead; SC $=$ standard cost; SQA $=$ standard quantity allowed. Label the variance as favorable $($F$)$ or unfavorable $($U$),$ in the input field after the amount you enter.$)$

Requirement $3.$ HeadSound Company's management used better quality materials during September. Discuss the trade$-$off between the two direct material variances.

HeadSound Company's management knew that using higher quality materials would result in $a(n)$

They hoped these materials would result in more efficient usage than "standard" materials. The

result was an overall $(18)2$: Standard Cost Information

Standard Cost Information

Fixed Manufacturing Overhead $($ $$40,320$ for static budget volume of $96,000$

units and $1,920$ hours, or $$21$ per hour$)$

$3$: Actual Cost Information

Actual Cost Information

$4$: Requirements

Compute the cost and efficiency variances for direct materials and direct labor.

For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances.

HeadSound Company's management used better quality materials during September. Discuss the trade$-$off between the two direct material variances.

$(1)$

$(AC-SC)AQ$

$(AC-SC)$SQA

$(AQ-$SQA$)AC$

$(9)$

$,(AQ-$ SQA $)SC$

$(AC-SC)AQ$ Actual FOH $-$ Allocated FOH

$(AC-SC)$ SQA Actual FOH $-$ Budgeted FOH

$(AQ-$SQA$)AC$ Budgeted FOH $-$ Allocated FOH

Actual FOH $-$ Allocated FOH

Actual FOH $-$ Budgeted FOH

Budgeted FOH $-$ Allocated FOH

$(AQ-$SQA$)SC$

Actual FOH $-$ Allocated FOH

Actual FOH $-$ Budgeted FOH

Budgeted FOH $-$ Allocated FOH

$($AQ $-$ SQA$)$ SC

Actual FOH $-$ Allocated FOH

Actual FOH $-$ Budgeted FOH

Budgeted FOH $-$ Allocated FOH

OF

$(11)$

$(6)$

$(AC-SC)AQ$

$(AC-SC)$ SQA

$($AQ $-$ SQA$)$ AC

$(AC-SC)AQ$

$(AC-SC)$ SQA

$-$ SQA$)$ AC

Budgeted FOH $-$ Allocated FOH

$(3)$

F

$(AC-SC)AQ$

$(AC-SC)$ SQA

$(AQ-$SQA$)AC$

F

U

F

$U$

$O$

$(15)$

$(AC-SC)AQ$

$(AC-SC)$SQA

$(AQ-$SQA$)AC$

$U$

$(AQ-$SQA$)SC$

Actual FOH $-$ Allocated FOH

Actual FOH $-$ Budgeted FOH

Budgeted FOH $-$ Allocated FOH

$(AQ-$SQA$)SC$

$(8)$

Actual FOH $-$ Allocated FOH

Actual FOH $-$ Budgeted FOH

Budgeted FOH $-$ Allocated FOH

$(AQ-$SQA$)SC$

$(12)$

$(4)$

$(4)$

F

$U$

Actual FOH $-$ Allocated FOH

Actual FOH $-$ Budgeted FOH

Budgeted FOH $-$ Allocated FOH

$(AQ-$SQA$)SC$

$(16)$

F

O

$(17)$ favorable direct material cost variance

favorable direct material cost variance

favorable direct material efficiency variance

favorable direct material flexible budget variance

unfavorable direct material cost variance

unfavorable direct labor flexible budget variance

unfavorable direct material efficiency variance

unfavorable direct material flexible budget variance