Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring aprofessional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of thenew fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solutionare as follows, along with actual information for the month.DMDLVariable-MOHFixed-MOH●●●Standard Quantity per Unit0.5 gallons of solution0.3 DL hoursActual results for January:●2.0 machine hours2.0 machine hours.Show Transcribed TextShow Transcribed Text26,000 gallons were actually produced.Cost of DM purchased was $250,560 for 14,400 gallons of solution.DM used in production was 12,740 gallons.Cost of DL was $133,796 for 8,060 DL hours worked.Variable-MOH cost was $117,390 for 54,600 machine hours used.Fixed-MOH cost was $223,860.Fixed-MOH price variance$$17.00 per gallon$17.00per DL hour$2.20 per machine hour$4.00 per machine hourCFixed-MOH volume variance $Standard PriceSDetermine the fixed-MOH price and volume variances for the month.CUnfavorableFavorable

Name: Sunland Industries produces a cleaning product that works for the pes
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring aprofessional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first

The fixed overhead price variance is also known as the fixed overhead spending variance. It is the…

Business

Accounting

Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH Show Transcribed Text ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours 2.0 machine hours Actual results for January: ● 2.0 machine hours ● Show Transcribed Text Fixed-MOH price variance 3 26,000 gallons were actually produced. Cost of DM purchased was $250,560 for 14,400 gallons of solution. DM used in production was 12,740 gallons. Cost of DL was $133,796 for 8,060 DL hours worked. Variable-MOH cost was $117,390 for 54,600 machine hours used. Fixed-MOH cost was $223,860. $ Fixed-MOH volume variance $ $17.00 per gallon $17.00 per DL hour $2.20 per machine hour $4.00 per machine hour C Standard Price Determine the fixed-MOH price and volume variances for the month. J Unfavorable Favorable

Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH Show Transcribed Text ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours 2.0 machine hours Actual results for January: ● 2.0 machine hours ● Show Transcribed Text Fixed-MOH price variance 3 26,000 gallons were actually produced. Cost of DM purchased was $250,560 for 14,400 gallons of solution. DM used in production was 12,740 gallons. Cost of DL was $133,796 for 8,060 DL hours worked. Variable-MOH cost was $117,390 for 54,600 machine hours used. Fixed-MOH cost was $223,860. $ Fixed-MOH volume variance $ $17.00 per gallon $17.00 per DL hour $2.20 per machine hour $4.00 per machine hour C Standard Price Determine the fixed-MOH price and volume variances for the month. J Unfavorable Favorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Pease Contractors is a local home remodeling company. In analyzing financial performance, the accountant compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at the time the annual plan is formulated and held constant for the entire year. The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for August are shown in the following schedule. Worker Classification Standard Direct Labor Rate per Hour Standard Direct Labor-Hours Allowed for Output Supervisor $ 50 1,800 Skilled 30 2,250 General 20 4,950 The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of August were as follows. Worker Classification Actual Direct Labor Rate per Hour Actual Direct Labor-Hours Supervisor $ 54 2,112 Skilled 32 2,112 General 18 5,376 Required: Calculate the dollar…
The Terminator Inc. provides on-site residential pest extermination services. The company has severalmobile teams who are dispatched from a central location in company-owned trucks. The company usesthe number of jobs to measure activity. At the beginning of April, the company budgeted for 100 jobs, butthe actual number of jobs turned out to be 105. A report comparing the budgeted revenues and costs to theactual revenues and costs appears below:The Terminator Inc.Variance ReportFor the Month Ended April 30Planning ActualBudget Results VariancesJobs ............................................ 100 105Revenue ...................................... $19,500 $20,520 $1,020 FExpenses:Mobile team operating costs ..... 10,000 10,320 320 UExterminating supplies ............ 1,800 960 840 FAdvertising ............................... 800 800 0Dispatching costs .................... 2,200 2,340 140 UOffice rent ................................ 1,800 1,800 0Insurance .................................…
The manager of the main laboratory facility at UrbanFit Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed I that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. (Click the icon to view the data.) Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,500 lab tests are performed next month. Let's begin by determining the formula that is used to calculate the variable cost (slope). Data table Variable cost (slope) Number of Lab Month Tests Performed Total Laboratory Overhead Costs January 2,800 $21,500 February 2,600 $22,700 March 3,100 $27,900 April.... 3,550 $31,400 May 3,700 $28,500 June.. 1,200 $19,500 July 1,400 $14,500 Print Done X
Lily Painting Service specializes in painting tall office buildings. During a recent month, the company worked on three painting projects (the Arrow Building, the Besler Building and the Cartrwright Building). The company is interested in controlling the materials costs, namely the paint, used for these painting contracts. In order to provide management with useful cost control information, the company uses standard costs and prepares monthly variance reports. Analysis reveals that the purchasing agent mistakenly purchased poor-quality paint for the Arrow Building project. The Besler Building project, however, received higher-than-standard-quality paint that was on sale. The Cartwright Building project received standard-quality paint. However, the price had increased and a new employee was used to paint the building. Shown below are quantity and cost data for each project. Project Arrow Building Besler Building Total variance (a) Cartwright Building 4,540 Project Arrow Building Besler…
Surrey Bikes, Inc. manufactures double bench bikes for resorts and other vacation properties. 　　　　　　　　　　　 Management now wants the accountants to complete an analysis to compare the budgeted costs to standard costs for 2021. During the year 2021, the company completed 680 bikes. 　　　　　　　　　　　　　 Let's discuss changes from budget and standard that occurred during 2021. 　　　　　 Overall, the company was able to increase several efficiencies. 　　　　　　　 However, the company also experienced some increased costs. 　　　　　　　 Use this information to complete the CH24 Budet Variances tab; the green section. 　　　　　　　　　　　　　　　　　　　　　 Electrical Parts Direct Materials 　　　　　　　 The purchase price, net of discounts increase by $2.50 per set. 　　　　　　　 There was also an increase in freight of by $0.25 per set. 　　　　　　　　　　　　　　　 Wheel Sets Direct Materials: 　　　　　　　 The company was able to secure…
Lily Painting Service specializes in painting tall office buildings. During a recent month, the company worked on three painting projects (the Arrow Building, the Besler Building and the Cartrwright Building). The company is interested in controlling the materials costs, namely the paint, used for these painting contracts. In order to provide management with useful cost control information, the company uses standard costs and prepares monthly variance reports. Analysis reveals that the purchasing agent mistakenly purchased poor-quality paint for the Arrow Building project. The Besler Building project, however, received higher-than-standard-quality paint that was on sale. The Cartwright Building project received standard-quality paint. However, the price had increased and a new employee was used to paint the building. Shown below are quantity and cost data for each project. Project Arrow Building Costs 3,720 gallons $275,280 3,500 gallons $273,000 bring $290,320 4,000 $363,200 4,220…
Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47 per boat. For the month of April, the company planned for activity of 60 boats, but the actual level of activity was 14 boats. The actual cleaning equipment and supplies for the month was $3,420. The activity variance for cleaning equipment and supplies in April would be closest to:
Anders Painting Service specializes in painting tall office buildings. During a recent month, the company worked on three painting projects (the Arrow Building, the Besler Building and the Cartrwright Building). The company is interested in controlling the materials costs, namely the paint, used for these painting contracts. In order to provide management with useful cost control information, the company uses standard costs and prepares monthly variance reports. Analysis reveals that the purchasing agent mistakenly purchased poor-quality paint for the Arrow Building project. The Besler Building project, however, received higher-than-standard-quality paint that was on sale. The Cartwright Building project received standard-quality paint. However, the price had increased and a new employee was used to paint the building. Shown below are quantity and cost data for each project. Actual Project Arrow Building Besler Building Cartwright Building 4,500 Total variance Quantity 3,750 gallons…
Carad Co. is an electronics company which makes two types of televisions – plasma screenTVs and LCD TVs. It operates within a highly competitive market and is constantly underpressure to reduce prices and develop new products. Carad Co. operates a standard costingsystem and performs a detailed variance analysis of both products on a monthly basis. Extracts from the management information for the month of November are shown below:NoteTotal number of units made and sold 1,400 1Material price variance $28,000 A 2 Notes.(1) The budgeted total sales volume for TVs was 1,180 units, consisting of an equal mixof plasma screen TVs and LCD screen TVs. Actual sales volume was 750 plasmaTVs and 650 LCD TVs. Standard sales prices are $350 per unit for the plasma TVsand $300 per unit for the LCD TVs. The actual sales prices achieved duringNovember were $330 per unit for plasma TVs and $290 per unit for LCD TVs. Thestandard contributions…
Finch Car Wash, Incorporated expected to wash 1,000 cars during the month of August. Washing each car was expected to require 0.2 hour of labor. The company actually used 216 hours of labor to wash 930 cars. The labor usage variance was $540 unfavorable. Required e. Determine the standard labor price. b. If the actual labor rate is $13, calculate the labor price variance and indicate whether it would be favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). a Standard labor price. b. Total labor price variance
Washington WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,000 pounds of plastic to use in its dive masks, at a cost of $6,800. The standard price for the plastic is $1.60 per pound. The company actually used 3,800 pounds of the plastic to produce 15,000 dive masks. Required Calculate Washington's direct materials price variance for the month. What's the equation/steps to do this problem?
Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following standard cost card for each dog bath given: Shampoo Water Direct labor Standard Quantity 1.4 ounces gallons 12 0.9 hour Standard Rate $0.40 $0.04 $9.00 Required 1 per ounces per gallons per hour During the month of July, Collin's employees gave 320 baths. The actual results were 710 ounces of shampoo used (cost of $340.80), 6,200 gallons of water used (cost of $434), and labor costs for 260 hours (cost of $2,756). Complete this question by entering your answers in the tabs below. Required 2 Required: 1. Calculate Suds & Cuts, direct materials variances for both shampoo and water for the month of July. 2. Calculate Suds & Cuts, direct labor variances for the month of July. Standard Unit Cost