Helix Company produces several products in its factory,including a karate robe. The company uses a standard cost system toassist in the control of costs. According to the standards thathave been set for the robes, the factory should work 780 directlabor-hours each month and produce 2,600 robes. The standard costsassociated with this level of production are as follows:
Total Per Unit
of Product Directmaterials $ 53,248 $ 20.48 Direct labor $ 8,580 3.30 Variable manufacturing overhead
(based on direct labor-hours)
$ 3,120 1.20 $ 24.98
During April, the factory worked only755 direct labor-hours and produced 2,700 robes. The followingactual costs were recorded during the month:
Total Per Unit
of Product Direct materials(9,180 yards) $ 55,080 $ 20.40 Direct labor $ 9,450 3.50 Variable manufacturing overhead
$ 4,860 1.80 $ 25.70
At standard, each robe should require 3.2 yards of material. Allof the materials purchased during the month were used inproduction.
Required: 1. Compute the materials price and quantity variances for April:(Input all amounts as positive values. Leave no cells blank- be certain to enter "0" wherever required. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zero variance). Round yourintermediate calculations to 2 decimal places and final answers tothe nearest dollar amount.)
Materials pricevariance $ (Click toselect)FUNone Materials quantityvariance $ (Click toselect)NoneFU
2. Compute the labor rate and efficiency variances for April:(Input all amounts as positive values. Leave no cells blank- be certain to enter "0" wherever required. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zero variance). Do not round yourintermediate calculations. Round your final answers to the nearestdollar.)
Labor ratevariance $ (Click toselect)FNoneU Labor efficiencyvariance $ (Click toselect)FNoneU
3. Compute the variable manufacturing overhead rate and efficiencyvariances for April: (Input all amounts as positive values.Leave no cells blank - be certain to enter "0" wherever required.Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces and final answers to the nearest dollaramount.)
Variable overheadrate variance $ (Click toselect)NoneFU Variable overheadefficiency variance $ (Click toselect)NoneUF
Helix Company produces several products in its factory,including a karate robe. The company uses a standard cost system toassist in the control of costs. According to the standards thathave been set for the robes, the factory should work 780 directlabor-hours each month and produce 2,600 robes. The standard costsassociated with this level of production are as follows: |
| Total | Per Unit of Product | ||
| Directmaterials | $ | 53,248 | $ 20.48 |
| Direct labor | $ | 8,580 | 3.30 |
Variable manufacturing overhead | $ | 3,120 | 1.20 |
$ 24.98 | |||
During April, the factory worked only755 direct labor-hours and produced 2,700 robes. The followingactual costs were recorded during the month: |
| Total | Per Unit of Product | ||
| Direct materials(9,180 yards) | $ | 55,080 | $ 20.40 |
| Direct labor | $ | 9,450 | 3.50 |
Variable manufacturing overhead | $ | 4,860 | 1.80 |
| $ 25.70 | |||
At standard, each robe should require 3.2 yards of material. Allof the materials purchased during the month were used inproduction. |
| Required: | |
| 1. | Compute the materials price and quantity variances for April:(Input all amounts as positive values. Leave no cells blank- be certain to enter "0" wherever required. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zero variance). Round yourintermediate calculations to 2 decimal places and final answers tothe nearest dollar amount.) |
| Materials pricevariance | $ | (Click toselect)FUNone |
| Materials quantityvariance | $ | (Click toselect)NoneFU |
| 2. | Compute the labor rate and efficiency variances for April:(Input all amounts as positive values. Leave no cells blank- be certain to enter "0" wherever required. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zero variance). Do not round yourintermediate calculations. Round your final answers to the nearestdollar.) |
| Labor ratevariance | $ | (Click toselect)FNoneU |
| Labor efficiencyvariance | $ | (Click toselect)FNoneU |
| 3. | Compute the variable manufacturing overhead rate and efficiencyvariances for April: (Input all amounts as positive values.Leave no cells blank - be certain to enter "0" wherever required.Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces and final answers to the nearest dollaramount.) |
| Variable overheadrate variance | $ | (Click toselect)NoneFU |
| Variable overheadefficiency variance | $ | (Click toselect)NoneUF |
Related questions
Helix Company produces several products in its factory, including akarate robe. The company uses a standard cost system to assist inthe control of costs. According to the standards that have been setfor the robes, the factory should work 780 direct labor-hours eachmonth and produce 3,900 robes. The standard costs associated withthis level of production are as follows: |
| Total | Per Unit of Product | ||
| Direct materials | $ | 78,624 | $ 20.16 |
| Direct labor | $ | 12,870 | 3.30 |
Variable manufacturing overhead | $ | 2,340 | 0.60 |
$24.06 | |||
| | |||
During April, the factory worked only 755direct labor-hours and produced 4,000 robes. The following actualcosts were recorded during the month: |
| Total | Per Unit of Product | ||
| Direct materials (14,000 yards) | $ | 84,000 | $ 21.00 |
| Direct labor | $ | 14,000 | 3.50 |
Variable manufacturing overhead | $ | 7,200 | 1.80 |
| $ 26.30 | |||
| | |||
At standard, each robe should require 3.2 yards of material. All ofthe materials purchased during the month were used inproduction. |
| Required: | |
| 1. | Compute the materials price and quantity variances for April:(Inputall amounts as positive values. Leave no cells blank - be certainto enter "0" wherever required. Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Round your intermediatecalculations to 2 decimal places and final answers to the nearestdollar amount.) |
| Materials price variance | $ | (Click to select)UFNone |
| Materials quantity variance | $ | (Click to select)NoneFU |
| 2. | Compute the labor rate and efficiency variances for April:(Input all amounts as positive values. Leave no cells blank - becertain to enter "0" wherever required. Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Do not round yourintermediate calculations. Round your final answers to the nearestdollar.) |
| Labor rate variance | $ | (Click to select)NoneFU |
| Labor efficiency variance | $ | (Click to select)UNoneF |
| 3. | Compute the variable manufacturing overhead rate and efficiencyvariances for April: (Inputall amounts as positive values. Leave no cells blank - be certainto enter "0" wherever required. Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Round your intermediatecalculations to 2 decimal places and final answers to the nearestdollar amount.) |
| Variable overhead rate variance | $ | (Click to select)UFNone |
| Variable overhead efficiency variance | $ | (Click to select)NoneUF |
Helix Company produces several products in itsfactory, including a karate robe. The company uses a standard costsystem to assist in the control of costs. According to thestandards that have been set for the robes, the factory should work780 direct labor-hours each month and produce 2,600 robes. Thestandard costs associated with this level of production are asfollows:
| Total | Per Unit of Product | ||
| Direct materials | $ | 49,920 | $19.20 |
| Direct labor | $ | 8,060 | 3.10 |
Variable manufacturing overhead | $ | 2,340 | 0.90 |
$ 23.20 | |||
| | |||
During April, thefactory worked only 760 direct labor-hours and produced 2,700robes. The following actual costs were recorded during themonth: |
| Total | Per Unit of Product | ||
| Direct materials (8,370 yards) | $ | 50,220 | $18.60 |
| Direct labor | $ | 8,910 | 3.30 |
Variable manufacturing overhead | $ | 5,670 | 2.10 |
| $ 24.00 | |||
| | |||
At standard, each robe should require 3.0 yardsof material. All of the materials purchased during the month wereused in production. |
| Required: | |
| 1. | Compute the materials price and quantityvariances for April: (Input all amounts as positivevalues. Leave no cells blank - be certain to enter "0" whereverrequired. Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces and final answers to the nearest dollar amount.) |
| Materials price variance | $ | |
| Materials quantity variance | $ | |
| 2. | Compute the labor rate and efficiency variancesfor April: (Inputall amounts as positive values. Leave no cells blank - be certainto enter "0" wherever required. Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Do not round yourintermediate calculations. Round your final answers to the nearestdollar.) |
| Labor rate variance | $ | |
| Labor efficiency variance | $ | |
| 3. | Compute the variable manufacturing overhead rateand efficiency variances for April: (Input all amounts as positivevalues. Leave no cells blank - be certain to enter "0" whereverrequired. Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces and final answers to the nearest dollar amount.) |
| Variable overhead rate variance | $ | |
| Variable overhead efficiency variance | $ | |
