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
(based on direct labor-hours)
$ 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 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 |