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Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials. Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead. Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance $ 20.60 $415,680 17,320 0.75 pounds at $7.40 per pound 1.25 hours at $25.40 per hour 10,000 pounds at $6.80 per pound 14,770 hours at $25.70 per hour $ 319,060 $ 383,740 K4 K4 12,140 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Efficiency Variance Production Volume Variance 1 pound at $8.00 per pound 1.50 hours at $30 per hour $ 22.40 $ 492,870 23,470 14,170 pounds at $8.30 per pound 22,270 hours at $32.00 per hour $ 461,212 $ 490,360 14,470 units X7 Price Variance X7 Efficiency Variance Production Volume Variance

Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials. Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead. Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance $ 20.60 $415,680 17,320 0.75 pounds at $7.40 per pound 1.25 hours at $25.40 per hour 10,000 pounds at $6.80 per pound 14,770 hours at $25.70 per hour $ 319,060 $ 383,740 K4 K4 12,140 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Efficiency Variance Production Volume Variance 1 pound at $8.00 per pound 1.50 hours at $30 per hour $ 22.40 $ 492,870 23,470 14,170 pounds at $8.30 per pound 22,270 hours at $32.00 per hour $ 461,212 $ 490,360 14,470 units X7 Price Variance X7 Efficiency Variance Production Volume Variance

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
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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( Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance $ 20.60 $415,680 17,320 0.75 pounds at $7.40 per pound. 1.25 hours at $25.40 per hour $ 319,060 $ 383,740 K4 10,000 pounds at $6.80 per pound 14,770 hours at $25.70 per hour K4 12,140 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Efficiency Variance Production Volume Variance 1 pound at $8.00 per pound 1.50 hours at $30 per hour $22.40 $ 492,870 23,470 14,170 pounds at $8.30 per pound 22,270 hours at $32.00 per hour $ 461,212 $ 490,360 14,470 units X7 Price Variance X7 Efficiency Variance Production Volume Variance
Transcribed Image Text:( Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance $ 20.60 $415,680 17,320 0.75 pounds at $7.40 per pound. 1.25 hours at $25.40 per hour $ 319,060 $ 383,740 K4 10,000 pounds at $6.80 per pound 14,770 hours at $25.70 per hour K4 12,140 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Efficiency Variance Production Volume Variance 1 pound at $8.00 per pound 1.50 hours at $30 per hour $22.40 $ 492,870 23,470 14,170 pounds at $8.30 per pound 22,270 hours at $32.00 per hour $ 461,212 $ 490,360 14,470 units X7 Price Variance X7 Efficiency Variance Production Volume Variance
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