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The following data were drawn from the records of Vernon Corporation. Planned volume for year (static budget) 4,900 units Standard direct materials cost per unit 3.60 pounds @ $ 1.20 per pound Standard direct labor cost per unit 3.10 hours @ $3.50 per hour Total expected fixed overhead costs $27,930 Actual volume for the year (flexible budget) 5, 100 units Actual direct materials cost per unit 3.10 pounds @ $1.60 per pound Actual direct labor cost per unit 3.40 hours @ $ 3.20 per hour Total actual fixed overhead costs $24, 330 Required Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). Calculate the predetermined overhead rate, assuming that Vernon uses the number of units as the allocation base. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).

The following data were drawn from the records of Vernon Corporation. Planned volume for year (static budget) 4,900 units Standard direct materials cost per unit 3.60 pounds @ $ 1.20 per pound Standard direct labor cost per unit 3.10 hours @ $3.50 per hour Total expected fixed overhead costs $27,930 Actual volume for the year (flexible budget) 5, 100 units Actual direct materials cost per unit 3.10 pounds @ $1.60 per pound Actual direct labor cost per unit 3.40 hours @ $ 3.20 per hour Total actual fixed overhead costs $24, 330 Required Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). Calculate the predetermined overhead rate, assuming that Vernon uses the number of units as the allocation base. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).

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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The following data were drawn from the records of Vernon Corporation. Planned volume for year (static budget) 4,900 units Standard direct materials cost per unit 3.60 pounds @ $ 1.20 per pound Standard direct labor cost per unit 3.10 hours @ $3.50 per hour Total expected fixed overhead costs $27,930 Actual volume for the year (flexible budget) 5, 100 units Actual direct materials cost per unit 3.10 pounds @ $1.60 per pound Actual direct labor cost per unit 3.40 hours @ $ 3.20 per hour Total actual fixed overhead costs $24, 330 Required Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). Calculate the predetermined overhead rate, assuming that Vernon uses the number of units as the allocation base. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).
Transcribed Image Text:The following data were drawn from the records of Vernon Corporation. Planned volume for year (static budget) 4,900 units Standard direct materials cost per unit 3.60 pounds @ $ 1.20 per pound Standard direct labor cost per unit 3.10 hours @ $3.50 per hour Total expected fixed overhead costs $27,930 Actual volume for the year (flexible budget) 5, 100 units Actual direct materials cost per unit 3.10 pounds @ $1.60 per pound Actual direct labor cost per unit 3.40 hours @ $ 3.20 per hour Total actual fixed overhead costs $24, 330 Required Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). Calculate the predetermined overhead rate, assuming that Vernon uses the number of units as the allocation base. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).
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