Snoopy's Workshop has one product and the following costs per unit to make one Snoopy: Direct...

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Snoopy's Workshop has one product and the following costs per unit to make one Snoopy: Direct materials per unit: 4 bags of stuffing @ $1 per bag Direct labor per unit: 3 minutes to stuff one Snoopy @ $10/hour Variable overhead (based on Direct Labor Hours): 3 minutes at $5/DLH The planning budget was based on producing and selling 5,000 units. However, during the period, the company incurred the following costs: (a) 18,700 bags of stuffing were used to produce 4900 Snoopies. Cost per bag was $1.10 (b) Direct laborers worked 270 hours at a rate of $12.00 per hour (c) Total variable manufacturing overhead for the month was $1300 (d) Fixed Expense information is not given in this example (e) Sales price per unit is $25 Prepare three budgets. A Planning Budget at 5000 units. A Flexible Budget at 4900 units. An Actual Results Budget at 4900 units. Prepare a Variance Analysis by comparing the Flexible Budget to the Actual Results Budget. Showing the formulas, calculate the following variances: a) Materials Quantity Variance b) Materials Price Variance c) Labor Rate Variance d) Labor Efficiency Variance e) Variable overhead Rate Variance f) Variable Overhead Efficiency Variance. Snoopy's Workshop has one product and the following costs per unit to make one Snoopy: Direct materials per unit: 4 bags of stuffing @ $1 per bag Direct labor per unit: 3 minutes to stuff one Snoopy @ $10/hour Variable overhead (based on Direct Labor Hours): 3 minutes at $5/DLH The planning budget was based on producing and selling 5,000 units. However, during the period, the company incurred the following costs: (a) 18,700 bags of stuffing were used to produce 4900 Snoopies. Cost per bag was $1.10 (b) Direct laborers worked 270 hours at a rate of $12.00 per hour (c) Total variable manufacturing overhead for the month was $1300 (d) Fixed Expense information is not given in this example (e) Sales price per unit is $25 Prepare three budgets. A Planning Budget at 5000 units. A Flexible Budget at 4900 units. An Actual Results Budget at 4900 units. Prepare a Variance Analysis by comparing the Flexible Budget to the Actual Results Budget. Showing the formulas, calculate the following variances: a) Materials Quantity Variance b) Materials Price Variance c) Labor Rate Variance d) Labor Efficiency Variance e) Variable overhead Rate Variance f) Variable Overhead Efficiency Variance.

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A Planning Budget at 5000 Units Bags of Stuffing materials costs 5000 x 4 20000 bags 1bag 20000 Direct Labor costs 5000 x 3 minutes 10hour 150 Variabl... View the full answer