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Cruise Manufacturing has two direct cost categories direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs Direct Cost Categories Standard Quantity Cost per Input Unit Direct Materials 12 pounds per output unit $15 per pound Direct Labor 3 hours per output uve $21 per hour Manufacturing Overhead Cost per Input Unit Variable Manufacturing Overhead $12 per Direct Labor Hour By the end of Apr 2019 Cruise Manufacturing records indicated the following Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production $11.44 per pound 95,000 pounds $22 per hour 48,000 labor hours Do not enter dollar signs or commas in the input boxes Round all answers to the nearest whole number Enter the variances as positive values. Calculate the following variances. al Direct materials price variance 338200 Favorable $390,000 17,000 output units b) Direct materials quantity variance. 1635000 Favorable c) Direct labor rate variance 48000 Unfavorable d) Direct labor efficiency variance Favorable # e) Variable manufacturing overhead spending variance Favorable †) Variable manufacturing overhead efficiency variance Favorable

Cruise Manufacturing has two direct cost categories direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs Direct Cost Categories Standard Quantity Cost per Input Unit Direct Materials 12 pounds per output unit $15 per pound Direct Labor 3 hours per output uve $21 per hour Manufacturing Overhead Cost per Input Unit Variable Manufacturing Overhead $12 per Direct Labor Hour By the end of Apr 2019 Cruise Manufacturing records indicated the following Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production $11.44 per pound 95,000 pounds $22 per hour 48,000 labor hours Do not enter dollar signs or commas in the input boxes Round all answers to the nearest whole number Enter the variances as positive values. Calculate the following variances. al Direct materials price variance 338200 Favorable $390,000 17,000 output units b) Direct materials quantity variance. 1635000 Favorable c) Direct labor rate variance 48000 Unfavorable d) Direct labor efficiency variance Favorable # e) Variable manufacturing overhead spending variance Favorable †) Variable manufacturing overhead efficiency variance Favorable

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...
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Cruise Manufacturing has two direct cost categories direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs Direct Cost Categories. Standard Quantity Cost per Input Unit pound Direct Materials 12 pounds per output unit $15 per Direct Labor 3 hours per output unit $21 per hour Manufacturing Overhead Cost per Input Unit Variable Manufacturing Overhead $12 per Direct Labor Hour By the end of Apr 2019 Cruise Manufacturing records indicated the following Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production $11.44 per pound 95,000 pounds $22 per hour 48,000 labor hours Do not enter dollar signs or commas in the input boxes Round all answers to the nearest whole number Enter the variances as positive values. Calculate the following variances. al Direct materials price variance 338200 Favorable $390,000 17,000 output units b) Direct materials quantity variance. 1635000 Favorable c) Direct labor rate variance 48000 Unfavorable d) Direct labor efficiency variance Favorable # e) Variable manufacturing overhead spending variance Favorable †) Variable manufacturing overhead efficiency variance Favorable
Transcribed Image Text:Cruise Manufacturing has two direct cost categories direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs Direct Cost Categories. Standard Quantity Cost per Input Unit pound Direct Materials 12 pounds per output unit $15 per Direct Labor 3 hours per output unit $21 per hour Manufacturing Overhead Cost per Input Unit Variable Manufacturing Overhead $12 per Direct Labor Hour By the end of Apr 2019 Cruise Manufacturing records indicated the following Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production $11.44 per pound 95,000 pounds $22 per hour 48,000 labor hours Do not enter dollar signs or commas in the input boxes Round all answers to the nearest whole number Enter the variances as positive values. Calculate the following variances. al Direct materials price variance 338200 Favorable $390,000 17,000 output units b) Direct materials quantity variance. 1635000 Favorable c) Direct labor rate variance 48000 Unfavorable d) Direct labor efficiency variance Favorable # e) Variable manufacturing overhead spending variance Favorable †) Variable manufacturing overhead efficiency variance Favorable
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