The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the...

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The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the product follows: Direct materials, 2 pounds at $10.00 per pound Direct labor, 0.8 hours at $31.25 per hour Factory overhead applied at 120% of direct labor (variable costs = $18; fixed costs = $12) Variable selling and administrative cost Fixed selling and administrative cost Total unit costs Standards have been computed based on a master budget activity level of 20,000 direct labor-hours per month. Actual activity for the past month was as follows: Materials used Direct labor Total factory overhead Production $20 25 30 10 12 $97 46,500 pounds at $9.90 per pound 17,800 hours at $32 per hour $657,000 22,500 units Required a. Prepare variance analyses for the variable and fixed costs. Indicate which variances cannot be computed. Materials are purchased as they are used. b. Complete the following table with the total variance for a resource. Be sure to indicate whether the variance is favorable or unfavorable. If the total cannot be determined, enter a "?". The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the product follows: Direct materials, 2 pounds at $10.00 per pound Direct labor, 0.8 hours at $31.25 per hour Factory overhead applied at 120% of direct labor (variable costs = $18; fixed costs = $12) Variable selling and administrative cost Fixed selling and administrative cost Total unit costs Standards have been computed based on a master budget activity level of 20,000 direct labor-hours per month. Actual activity for the past month was as follows: Materials used Direct labor Total factory overhead Production $20 25 30 10 12 $97 46,500 pounds at $9.90 per pound 17,800 hours at $32 per hour $657,000 22,500 units Required a. Prepare variance analyses for the variable and fixed costs. Indicate which variances cannot be computed. Materials are purchased as they are used. b. Complete the following table with the total variance for a resource. Be sure to indicate whether the variance is favorable or unfavorable. If the total cannot be determined, enter a "?".

Answer rating: 100% (QA)

a Variable cost variance Price variance 010 per pound x 46500 pounds 4... View the full answer