Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.58BP
Determine all variances and make
Figaro Company manufactures embroidered jackets. The company uses a
Direct materials (3.0 sq. ft. × $3.95 per sq. ft) | $11.85 | |
Direct labor (2.0 hours × $9.20 per hour) | 18.40 | |
Manufacturing |
||
Variable (2.0 hours × $0.60 per hour) | $1.20 | |
Fixed (2.0 hours × $2.30 per hour) | 4.60 | 5.80 |
Total standard cost per jacket | $36.05 |
Fixed overhead in total was budgeted to be $63,600 for each month.
Actual data for November of the current year include the following:
- a. Actual production was 13,800 jackets.
- b. Actual direct materials usage was 2.50 square feet per jacket at an actual cost of $4.10 per square foot.
- c. Actual direct labor usage of 25,400 hours for a total cost of $238,760.
- d. Actual fixed overhead cost was $59,202, while actual variable overhead cost was $19,050.
Requirements
- 1. Compute the price and quantity variances for direct materials.
- 2. Compute the rate and efficiency variances for direct labor.
- 3. Compute the rate and efficiency variances for variable overhead.
- 4. Compute the fixed overhead
budget variance and the fixed overhead volume variance. - 5. Company management intentionally purchased superior materials for November production. How did this decision affect the other cost variances? Overall, was the decision wise? Explain.
- 6. Journalize the usage of direct materials and the assignment of direct labor, including the related variances.
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Michael Roberts is a cost accountant and business analyst for HP Clothing Company (HPCC).
which manufactures expensive T-shirts. HPCC uses two direct cost categories: direct materials
and direct manufacturing labor. It allocates manufacturing overhead to production based upon
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At the beginning of 2020, HPCC adopted the following standards for cach Tshirt:
Input
Direct materials
Standard Quantity Standand Price
Or Hour
3.1 kg
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$9 kg
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2 hours
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Actual results for April 2020 were as follows:
Production
Direct materials purchased
Direct materials used
Direct labor
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Required:
a) Compute the standard variable product cost per unit.
b) For the month of April 2020, compute the following variances, indicating whether each is
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i. Direct materials price variance, based on purchases
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Please answer parts 5-8 according to the images attached below.
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:
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?
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$ ?
Direct labor
?
?
?
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$ ?
Overhead is applied to production on the basis of direct labor-hours. During March, 780 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:
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Direct Labor
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$ 15,600
$ 13,104
$ 2,496
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$ 13,112
?
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?
Materials quantity variance
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U
Labor rate variance
?
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Designer Furniture Company manufactures designer home furniture. Designer Furniture uses a standard cost system. The direct labor, direct materials, and factory overhead standards for a finished dining room table are as follows:
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$24.00 per hr.
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$8.50 per bd. ft.
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standard quantity
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Variable factory overhead:
standard rate
$3.20 per direct labor hr.
Fixed factory overhead:
standard rate
$0.80 per direct labor hr.
a. Determine the standard cost per dining room table. Round to two decimal places.fill in the blank 1 of 1$ per table
Chapter 11 Solutions
Managerial Accounting (5th Edition)
Ch. 11 - (Learning Objective 1) Which of the following is...Ch. 11 - (Learning Objective 2) The direct material price...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - (Learning Objective 4) Which of the following is...Ch. 11 - Prob. 7QCCh. 11 - (Learning Objective 6) Which of the following is...Ch. 11 - Prob. 9QCCh. 11 - (Learning Objective 7Appendix) Which of the...
Ch. 11 - Compute the standard cost of direct materials...Ch. 11 - Compute the standard cost of direct labor...Ch. 11 - Explain a direct material variance (Learning...Ch. 11 - Prob. 11.4SECh. 11 - Calculate direct material variances when the...Ch. 11 - Calculate direct labor variances (Learning...Ch. 11 - Prob. 11.7SECh. 11 - Prob. 11.8SECh. 11 - Calculate fixed overhead variances (Learning...Ch. 11 - Calculate and interpret fixed overhead variances...Ch. 11 - Prob. 11.11SECh. 11 - Calculate and interpret overhead variances...Ch. 11 - Record costing transactions (Learning Objective 7)...Ch. 11 - Record standard costing transactions (Learning...Ch. 11 - Identify ethical standards violated (Learning...Ch. 11 - Vocabulary (Learning Objectives 1, 2, 3, 4, 5, 6)...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Calculate and interpret direct material and direct...Ch. 11 - Calculate the material and labor variances...Ch. 11 - Record materials and labor transactions (Learning...Ch. 11 - Calculate the standard cost of a product before...Ch. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Compute and interpret overhead variances (Learning...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Make journal entries in a standard costing system...Ch. 11 - Prepare a standard cost income statement (Learning...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate the standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Prob. 11.38BECh. 11 - Prob. 11.39BECh. 11 - Prob. 11.40BECh. 11 - Prob. 11.41BECh. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Calculate and interpret overhead variances...Ch. 11 - Prob. 11.44BECh. 11 - Prob. 11.45BECh. 11 - Prob. 11.46BECh. 11 - Prob. 11.47BECh. 11 - Prob. 11.48BECh. 11 - Prob. 11.49APCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Prob. 11.52APCh. 11 - Prob. 11.53APCh. 11 - Prob. 11.54BPCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Work backward through labor variances (Learning...Ch. 11 - Determine all variances and make journal entries...Ch. 11 - Calculate labor variances in a hotel (Learning...
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