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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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).
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education