The? Sudbury, South? Carolina, plant of Shannon Sports Companyhas the following standards for its soccer ball? production:
Standards:
0.1 yard
Material (leather) per soccer ball
$21
Material price per yard
0.40 Hour
Direct labor hours per soccer ball
$11 per hour
Wage rate per direct labor hour
$12 per direct labor hour
Variable support cost rate
Actual results for October:
Used 13500 yards of raw material, purchased for $280,530.00.
Paid for 8,200 direct labor hours at $11.30 per hour.
Incurred $82,000 of variable support costs
Manufactured 25,000 soccer balls
Requirements
Determine the following variances for? October:
?(a)
Total direct material cost variance and indicate whether thevariance is favorable or unfavorable
?(b)
Total direct labor cost variance
?(c)
Total variable support cost variance
?(d)
Direct material price variance
?(e)
Direct material quantity variance
?(f)
Direct labor rate variance
?(g)
Direct labor efficiency variance
?(h)
Variable support rate variance
?(i)
Variable support efficiency variance
AH? = Actual number of direct labor hours
AP? = Actual price per unit of materials
AQ? = Actual quantity of materials used
AR? = Actual wage rate
SH? = Number of direct labor hours allowed given the level ofoutput achieved
SP? = Estimated or standard price per unit of materials
SQ? = Standard quantity of materials allowed for the productionlevel achieved
SR? = Standard wage rate
The? Sudbury, South? Carolina, plant of Shannon Sports Companyhas the following standards for its soccer ball? production:
Standards: | 0.1 yard |
Material (leather) per soccer ball | $21 |
Material price per yard | 0.40 Hour |
Direct labor hours per soccer ball | $11 per hour |
Wage rate per direct labor hour | $12 per direct labor hour |
Variable support cost rate | |
Actual results for October: | |
| Used 13500 yards of raw material, purchased for $280,530.00. Paid for 8,200 direct labor hours at $11.30 per hour. Incurred $82,000 of variable support costs Manufactured 25,000 soccer balls |
Requirements
Determine the following variances for? October:
?(a) | Total direct material cost variance and indicate whether thevariance is favorable or unfavorable |
?(b) | Total direct labor cost variance |
?(c) | Total variable support cost variance |
?(d) | Direct material price variance |
?(e) | Direct material quantity variance |
?(f) | Direct labor rate variance |
?(g) | Direct labor efficiency variance |
?(h) | Variable support rate variance |
?(i) | Variable support efficiency variance |
AH? = Actual number of direct labor hours
AP? = Actual price per unit of materials
AQ? = Actual quantity of materials used
AR? = Actual wage rate
SH? = Number of direct labor hours allowed given the level ofoutput achieved
SP? = Estimated or standard price per unit of materials
SQ? = Standard quantity of materials allowed for the productionlevel achieved
SR? = Standard wage rate
Related questions
Requirements
| 1. | What is the standard direct material cost for oneâ blanket? |
| 2. | What is the actual cost per yard of fabricâ purchased? |
| 3. | Calculate the direct material price and quantity variances. |
| 4. | What is the standard direct labor cost for oneâ blanket? |
| 5. | What is the actual direct labor cost perâ hour? |
| 6. | Calculate the direct labor rate and efficiency variances. |
| 7. | Analyze each variance and speculate as to what may have caused that variance. |
| 8. | Look at all four variances togetherâ (the bigâ picture). How might they all beârelated? What variance is very likely to have caused the otherâ variances? |
Dazzle Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for thisâ blanket:
Data Table
Direct materials (fabric). . . . . . . . 2.0 yards per blanket at $7.00 per yard
Direct labor. . . . . . . . . . . . . . . . . 0.5 direct labor hours per blanket at $19.00 per hour
Actual results from lastâ month's production of 2,400 blankets are as follows
Data Table
Actual cost of 6,240 yards of direct material (fabric) purchased. . . . . .$40,560
Actual yards of direct material (fabric) used. . . . . . . . . . . . . . . . . .5,540
Actual wages for 1,350 direct labor hours worked. . . . . . . . . . . . .$24,840
Vitalite, Inc., produces a number of products, including abody-wrap kit. Standard variable costs relating to a single kit aregiven below: |
| StandardQuantity or Hours | StandardPrice or Rate | Standard Cost | ||
| Directmaterials | ? | $6.00 peryard | $ ? | |
| Direct labor | ? | ? | ? | |
| Variable manufacturingoverhead | ? | $2.00 perdirect labor-hour | ? | |
| Total standard costper kit | $46.80 | |||
During August, 530 kits weremanufactured and sold. Selected information relating to the monthâsproduction is given below: |
| MaterialsUsed | DirectLabor | Variable Manufacturing Overhead | ||
| Total standardcost* | ? | $7,420 | $1,484 | |
| Actual costsincurred | $14,100 | ? | $1,570 | |
| Materials pricevariance | ? | |||
| Materials quantityvariance | $ 1,020 U | |||
| Labor ratevariance | ? | |||
| Labor efficiencyvariance | ? | |||
| Variable overheadrate variance | ? | |||
| Variable overheadefficiency variance | ? | |||
| *For the month'sproduction. |
| The following additionalinformation is available for Augustâs production of kits: |
| Actual directlabor-hours | 880 | |
| Difference betweenstandard and actual cost per kit produced during August | $0.20 | U |
| Required: |
| 1. | What was the total standard cost of the materials used duringAugust?
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| 5. | What was the labor rate variance for August? The laborefficiency variance? (Do not round your intermediatecalculations. Indicate the effect of each variance by selecting "F"for favorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance)) | ||||||||||||
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| 6. | What was the variable overhead rate variance for August? Thevariable overhead efficiency variance?(Do not roundintermediate calculations. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance)) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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