The roofing company manufactures shingles. Direct materials Direct labor Variable Manufacturing overhead Fixed Manufacturing overhead Standard...
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The roofing company manufactures shingles. Direct materials Direct labor Variable Manufacturing overhead Fixed Manufacturing overhead Standard Cost Sheet per shingle Asphalt Budgeted fixed manufacturing overhead for the period is Budgeted units to be produced Standard fixed manufacturing overhead based on expected capacity of Shingles produced Materials purchased: Asphalt Total standard cost per shingle Materials used: Asphalt Direct labor: 1.25 pounds Fixed 0.01 hour 2. Calculate the direct labor rate and efficiency variances. Labor rate variance Labor Efficiency variance direct labor Manufacturing overhead incurred: Variable 3. Variable manufacturing overhead spending and efficiency variances. Variable overhead spending variance Variable overhead efficiency variance 0.01 hour direct labor The following information is available regarding the company's actual operations for the period. 0.01 hour direct labor $0.08 per pound $15.00 per hour $2 per hour $10 per hour Required: Make sure you do not forget to label each variance U or F. You need to use cell references for your calculations. 1. Calculate the direct materials price and quantity variance. Material price variance should be based on material purchased, since you want to isolate the variance as soon as possible. Material Quantity variance should be based on materials used, since this is monitoring the production efficiency. Material purchase price variance Material Quantity variance 752,000 pounds 752,000 pounds 5,400 hours $60,350 600,000 Units 6000 direct labor hours 550,000 $0.07 per pound $16.00 per hour $11,880 $2.20 VOH rate per direct labor hour $59,000 4. Fixed manufacturing overhead budget variance. Fixed Manufacturing overhead budget variance 5. Pick out the two variances that you computed above that you think should be further investigated. Explain why you picked these 2 variances and what might be the possible cause of the variances. The roofing company manufactures shingles. Direct materials Direct labor Variable Manufacturing overhead Fixed Manufacturing overhead Standard Cost Sheet per shingle Asphalt Budgeted fixed manufacturing overhead for the period is Budgeted units to be produced Standard fixed manufacturing overhead based on expected capacity of Shingles produced Materials purchased: Asphalt Total standard cost per shingle Materials used: Asphalt Direct labor: 1.25 pounds Fixed 0.01 hour 2. Calculate the direct labor rate and efficiency variances. Labor rate variance Labor Efficiency variance direct labor Manufacturing overhead incurred: Variable 3. Variable manufacturing overhead spending and efficiency variances. Variable overhead spending variance Variable overhead efficiency variance 0.01 hour direct labor The following information is available regarding the company's actual operations for the period. 0.01 hour direct labor $0.08 per pound $15.00 per hour $2 per hour $10 per hour Required: Make sure you do not forget to label each variance U or F. You need to use cell references for your calculations. 1. Calculate the direct materials price and quantity variance. Material price variance should be based on material purchased, since you want to isolate the variance as soon as possible. Material Quantity variance should be based on materials used, since this is monitoring the production efficiency. Material purchase price variance Material Quantity variance 752,000 pounds 752,000 pounds 5,400 hours $60,350 600,000 Units 6000 direct labor hours 550,000 $0.07 per pound $16.00 per hour $11,880 $2.20 VOH rate per direct labor hour $59,000 4. Fixed manufacturing overhead budget variance. Fixed Manufacturing overhead budget variance 5. Pick out the two variances that you computed above that you think should be further investigated. Explain why you picked these 2 variances and what might be the possible cause of the variances.
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1 Direct Materials Variances a Material Price Variance Material Price Variance Actual Price Standard Price Actual Quantity 007 008 752000 pounds 7520 Favorable Explanation The negative value indicates ... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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