Variances, Entries, and Income Statement A summary of Blake Company's manufacturing variance report for June follows....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Variances, Entries, and Income Statement A summary of Blake Company's manufacturing variance report for June follows. Total Standard Costs (7,600 units) Actual Costs (7,600 units) Variances Direct material Direct labor Variable overhead Fixed overhead $66,880 77,520 34,200 102,600 $281,200 $65,100 $1,780 F 82,800 5,280 U 33,000 102,600 1,200 F $283,500 $2,300 U Standard material cost per unit of product is 4 pounds at $2.20 per pound, and standard direct labor cost is 0.75 hours at $13.60 per hour. Total actual material cost represents 31,000 pounds purchased at $2.10 per pound. Total actual labor cost represents 6,000 hours at $13.80 per hour. According to standards, variable overhead rate is applied at $6 per direct labor hour (based on a normal capacity of 6,000 direct labor hours or 8,000 units of product). Assume that all fixed overhead is applied to work in progress inventory. a. Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ 0 Split cost: $ 0 Standard cost: $ 0 Materials price $ 0 = Materials efficiency $ 0 Labor Variances Actual cost: $ Split cost: $ Standard cost: $ Labor rate $ Labor efficiency $ OOOOO 0 0 0 0 0 Variable Overhead Variances Actual cost: $ Split cost: $ Standard cost: $ Variable overhead spending $ Variable overhead efficiency $ ooooo 0 0 0 0 0 = Variances, Entries, and Income Statement A summary of Blake Company's manufacturing variance report for June follows. Total Standard Costs (7,600 units) Actual Costs (7,600 units) Variances Direct material Direct labor Variable overhead Fixed overhead $66,880 77,520 34,200 102,600 $281,200 $65,100 $1,780 F 82,800 5,280 U 33,000 102,600 1,200 F $283,500 $2,300 U Standard material cost per unit of product is 4 pounds at $2.20 per pound, and standard direct labor cost is 0.75 hours at $13.60 per hour. Total actual material cost represents 31,000 pounds purchased at $2.10 per pound. Total actual labor cost represents 6,000 hours at $13.80 per hour. According to standards, variable overhead rate is applied at $6 per direct labor hour (based on a normal capacity of 6,000 direct labor hours or 8,000 units of product). Assume that all fixed overhead is applied to work in progress inventory. a. Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ 0 Split cost: $ 0 Standard cost: $ 0 Materials price $ 0 = Materials efficiency $ 0 Labor Variances Actual cost: $ Split cost: $ Standard cost: $ Labor rate $ Labor efficiency $ OOOOO 0 0 0 0 0 Variable Overhead Variances Actual cost: $ Split cost: $ Standard cost: $ Variable overhead spending $ Variable overhead efficiency $ ooooo 0 0 0 0 0 =
Expert Answer:
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
Students also viewed these accounting questions
-
Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 8 % , and its common stock currently pays a $ 4 . 0 0 dividend per share ( D 0 = $ 4 . 0 0 ) ....
-
Sue invested $15,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership The partnership had $40,000 of qualified nonrecourse debt and $40,000 of debt she is not...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
If Y = $200 billion, c = 0.75, autonomous consumption = $10 billion, and T = $20 billion, induced consumption expenditure is Question 5 options: a) $135 billion. b) $200 billion. c) $180 billion. d)...
-
List and describe the four main types of information captured in project meeting minutes.
-
What is meant by "reasonable expectation of privacy"? Provide an example of a situation in which an individual has such an expectation.
-
Phototronic Services Ltd has employed you as its accountant to record its business transactions. On 1 September 20x8, the following balance sheet is presented: Required 1 Produce the general journal...
-
Be-at-Ease Industries manufactures a series of three models of molded plastic chairs: standard (without arms), deluxe (with arms), and executive (with arms and padding). All are variations of the...
-
The Student Government Association is making Mother's Day gift baskets to sell at a fund-raiser. If the SGA makes a larger quantity of baskets, it can purchase materials in bulk. The total c hundreds...
-
TB Problem Qu. 11-171 (Algo) Brissett Corporation makes three products... Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data...
-
How do cultural intelligence and cross-cultural competence contribute to successful global team collaborations and international business operations ?
-
Consider the following information for NetixX Inc. (INFLX) Netflix, Inc. (unaudited) Consolidated Balance Sheets, in thousands Liabilities and Stockholders' Equity 2018 2019 Current liabilities:...
-
Community General Hospital is experiencing downward trending over the past two years for both patient experience and caregiver engagement scores. Organizational annual goals have included targets for...
-
Sam & Caloy are partners with capital balances of Php 160,000 and Php 80,000. They share profits in the ratio of 3:1. The partners agree to admit Ted as a member of the firm. Give the required...
-
How might a small manufacturing company use both the prevention and the preparation stages of crisis planning with respect to supply chain disruptions?
-
The rejection and nonrejection regions are divided by a point called the critical value. True False
-
Air pollution generated by a steel mill is an example of a) a positive production externality. b) a negative production externality. c) a public good. d) the free-rider problem. State and local taxes...
-
Diane Oil Company obtained shooting rights on 10,000 acres at $2/acre and then hired an independent geological firm to conduct the initial G&G work for \($60,000\). As a result of the G&G work, Diane...
-
Gusher Petroleum obtained a lease on March 1, 2015. Being short of funds, Gusher Petroleum did not begin drilling operations during the first year of the primary term and on March 1, 2016, made a...
-
During 2016, the exploration department of Black Gold Oil Corporation incurred the following costs in exploring the Oklahoma Anadarko Basin. Give the entries. Shooting rights.. Bottom-hole...
Study smarter with the SolutionInn App