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Great Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.40 per square foot. Production required 420 direct labor hours that cost $12.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.45 per square foot. The labor standard was 0.023 direct labor hour per fender, at a standard cost of $11.50 per hour. Read the requiremen). Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Variance Direct materials cost variance Direct labor cost variance Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) = Formula Direct materials efficiency variance Direct labor efficiency variance Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain. = The The net effect on the total direct materials variance is Formula direct materials cost variance combined with the ▼ direct labor cost variance combined with the performed more efficiently. The net effect on the total direct labor variance is Variance = ✓direct materials efficiency variance suggests that managers may have used direct labor efficiency variance suggests that managers may have used direct materials. The workers who

Great Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.40 per square foot. Production required 420 direct labor hours that cost $12.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.45 per square foot. The labor standard was 0.023 direct labor hour per fender, at a standard cost of $11.50 per hour. Read the requiremen). Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Variance Direct materials cost variance Direct labor cost variance Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) = Formula Direct materials efficiency variance Direct labor efficiency variance Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain. = The The net effect on the total direct materials variance is Formula direct materials cost variance combined with the ▼ direct labor cost variance combined with the performed more efficiently. The net effect on the total direct labor variance is Variance = ✓direct materials efficiency variance suggests that managers may have used direct labor efficiency variance suggests that managers may have used direct materials. The workers who

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...
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Great Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.40 per square foot. Production required 420 direct labor hours that cost $12.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.45 per square foot. The labor standard was 0.023 direct labor hour per fender, at a standard cost of $11.50 per hour. Read the requiremen). Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance = = Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) The = Direct materials efficiency variance Direct labor efficiency variance Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain. = Formula The net effect on the total direct materials variance is (...) direct materials cost variance combined with the direct labor cost variance combined with the performed more efficiently. The net effect on the total direct labor variance is Variance direct materials efficiency variance suggests that managers may have used direct labor efficiency variance suggests that managers may have used direct materials. The workers who
Transcribed Image Text:Great Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.40 per square foot. Production required 420 direct labor hours that cost $12.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.45 per square foot. The labor standard was 0.023 direct labor hour per fender, at a standard cost of $11.50 per hour. Read the requiremen). Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance = = Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) The = Direct materials efficiency variance Direct labor efficiency variance Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain. = Formula The net effect on the total direct materials variance is (...) direct materials cost variance combined with the direct labor cost variance combined with the performed more efficiently. The net effect on the total direct labor variance is Variance direct materials efficiency variance suggests that managers may have used direct labor efficiency variance suggests that managers may have used direct materials. The workers who
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