Compuțing standard cost variances and reporting to management SoundSmart manufactures headphone cases. During September 2020, the company produced 108,000 cases and recorded the following cost data: Standard Cost Information Quantity Cost Direct Materials 2 parts $ 0.16 per part Direct Labor 0.02 hours 7.00 per hour Variable Manufacturing Overhead 0.02 hours 11.00 per hour Fixed Manufacturing Overhead ($29,400 for static budget volume of 98,000 units and 1,960 hours, or $15 per hour) Actual Information Direct Materials (193,000 parts @ $0.21 per part) $ 40,530 Direct Labor (1,760 hours @ $7.15 per hour) 12,584 Variable Manufacturing Overhead 12,000 Fixed Manufacturing Overhead 30,000 Requirements 1 Compute the cost and efficiency variances for direct materials and direct labor. 2 For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 3 SoundSmart's management used better quality materials during September. Discuss the trade-off between the two direct material variances.

Compuțing standard cost variances and reporting to management SoundSmart manufactures headphone cases. During September 2020, the company produced 108,000 cases and recorded the following cost data: Standard Cost Information Quantity Cost Direct Materials 2 parts $ 0.16 per part Direct Labor 0.02 hours 7.00 per hour Variable Manufacturing Overhead 0.02 hours 11.00 per hour Fixed Manufacturing Overhead ($29,400 for static budget volume of 98,000 units and 1,960 hours, or $15 per hour) Actual Information Direct Materials (193,000 parts @ $0.21 per part) $ 40,530 Direct Labor (1,760 hours @ $7.15 per hour) 12,584 Variable Manufacturing Overhead 12,000 Fixed Manufacturing Overhead 30,000 Requirements 1 Compute the cost and efficiency variances for direct materials and direct labor. 2 For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 3 SoundSmart's management used better quality materials during September. Discuss the trade-off between the two direct material variances.

Name: Compuțing standard cost variances and reporting to managementSoundSma
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Description: Compuțing standard cost variances and reporting to managementSoundSmart manufactures headphone cases. During September 2020, the companyproduced 108,000 cases and recorded the following cost data:Standard Cost InformationQuantityCostDirect Materials

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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