Coronado, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows.     Standard Price   Standard Quantity   Standard Cost   Direct materials   $3 per yard   2.00  yards   $6.00   Direct labor   $14 per DLH   0.75  DLH   10.50   Variable overhead   $3.20 per DLH   0.75  DLH   2.40   Fixed overhead   $3 per DLH   0.75  DLH   2.25                 $21.15    Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased 82,400 yards of fabric and used 94,000 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $464,275, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 604,000 shirts, using 454,000 direct labor hours. Though the budget for November was based on 45,900 shirts, the company actually produced 42,400 shirts during the month.     Variable Overhead Budget     Annual Budget   Per Shirt   November—Actual   Indirect material   $445,000   $1.20   $49,300   Indirect labor   299,000   0.75   30,900   Equipment repair   201,000   0.30   20,600   Equipment power   48,000   0.15   6,900        Total   $993,000   $2.40   $107,700         Fixed Overhead Budget     Annual Budget   November—Actual   Supervisory salaries   $256,000   $21,000   Insurance   346,000   27,300   Property taxes   80,000   6,900   Depreciation   325,000   26,400   Utilities   210,000   19,900   Quality inspection   283,000   24,500        Total   $1,500,000   $126,000   (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct material price variance $enter the direct material price variance in dollars  select an option                                                            Direct material quantity variance $enter the direct material quantity variance in dollars  select an option                                                            (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct labor rate variance $enter the direct labor rate variance in dollars  select an option                                                            Direct labor efficiency variance $enter the direct labor efficiency variance in dollars  select an option                                                            (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable overhead spending variance $enter the variable overhead spending variance in dollars  select an option                                                            Variable overhead efficiency variance $enter the variable overhead efficiency variance in dollars  select an option                                                            (d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Fixed overhead spending variance $enter the fixed overhead spending variance in dollars  select an option

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Coronado, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows.

    Standard Price   Standard Quantity   Standard Cost  
Direct materials
  $3 per yard   2.00  yards   $6.00  
Direct labor
  $14 per DLH   0.75  DLH   10.50  
Variable overhead
  $3.20 per DLH   0.75  DLH   2.40  
Fixed overhead
  $3 per DLH   0.75  DLH   2.25  
              $21.15  
 


Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November.

The company purchased 82,400 yards of fabric and used 94,000 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $464,275, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 604,000 shirts, using 454,000 direct labor hours. Though the budget for November was based on 45,900 shirts, the company actually produced 42,400 shirts during the month.

   
Variable Overhead Budget
   
Annual Budget
 
Per Shirt
 
November—Actual
 
Indirect material
  $445,000   $1.20   $49,300  
Indirect labor
  299,000   0.75   30,900  
Equipment repair
  201,000   0.30   20,600  
Equipment power
  48,000   0.15   6,900  
     Total
  $993,000   $2.40   $107,700  

 

   
Fixed Overhead Budget
   
Annual Budget
 
November—Actual
 
Supervisory salaries
  $256,000   $21,000  
Insurance
  346,000   27,300  
Property taxes
  80,000   6,900  
Depreciation
  325,000   26,400  
Utilities
  210,000   19,900  
Quality inspection
  283,000   24,500  
     Total
  $1,500,000   $126,000  



(a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct material price variance
$enter the direct material price variance in dollars  select an option                                                           
Direct material quantity variance
$enter the direct material quantity variance in dollars  select an option                                                           


(b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct labor rate variance
$enter the direct labor rate variance in dollars  select an option                                                           
Direct labor efficiency variance
$enter the direct labor efficiency variance in dollars  select an option                                                           


(c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Variable overhead spending variance
$enter the variable overhead spending variance in dollars  select an option                                                           
Variable overhead efficiency variance
$enter the variable overhead efficiency variance in dollars  select an option                                                           


(d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Fixed overhead spending variance $enter the fixed overhead spending variance in dollars  select an option                                                           
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