Goldman Company manufactures shirts. During Juneâ, Goldman made1 comma 600 shirts and gathered the following additionalâ data:LOADING...â(Click on the icon to view theâ data.) Read therequirements LOADING....
7. Calculate the direct materials cost variance. Select theâformula, then enter the amounts and compute the cost variance fordirect materials and identify whether the variance is favorableâ(F) or unfavorableâ (U). ( Actual Cost - â¼ ) x Actual Quantity =Direct Materials Cost Variance ( - ) x =
8. Calculate the direct materials efficiency variance. Selecttheâ formula, then enter the amounts and compute the efficiencyvariance for direct materials and identify whether the variance isfavorableâ (F) or unfavorableâ (U). ( Actual Quantity - â¼ ) xStandard Cost = Direct Materials Efficiency Variance ( - ) x =
9. Calculate the total direct materials variance and identifywhether the variance is favorable or unfavorable. The total directmaterials variance is .
10. Calculate the direct labor cost variance. Select theâformula, then enter the amounts and compute the cost variance fordirect labor and identify whether the variance is favorableâ (F) orunfavorableâ (U). ( Actual Cost - Standard Cost ) x â¼ = DirectLabor Cost Variance ( - ) x =
11. Calculate the direct labor efficiency variance. Select theâformula, then enter the amounts and compute the efficiency variancefor direct labor and identify whether the variance is favorableâ(F) or unfavorableâ (U). ( Actual Quantity - Standard Quantity ) xâ¼ = Direct Labor Efficiency Variance ( - ) x =
12. Calculate the total direct labor variance and identifywhether the variance is favorable or unfavorable. The total directlabor variance is . Choose from any list or enter any number in theinput fields and then continue to the next question.
Data Table
Direct materials cost standard $7.00 per yard of fabric
Direct materials efficiency standard 1.70 yards per shirt
Actual amount of fabric purchased and used 2,620 yards
Actual cost of fabric purchased and used $18,602
Direct labor cost standard $12.00 per DLHr
Direct labor efficiency standard 3.00 DLHr per shirt
Actual amount of direct labor hours 4,890 DLHr
Actual cost of direct labor $57,702
Goldman Company manufactures shirts. During Juneâ, Goldman made1 comma 600 shirts and gathered the following additionalâ data:LOADING...â(Click on the icon to view theâ data.) Read therequirements LOADING....
7. Calculate the direct materials cost variance. Select theâformula, then enter the amounts and compute the cost variance fordirect materials and identify whether the variance is favorableâ(F) or unfavorableâ (U). ( Actual Cost - â¼ ) x Actual Quantity =Direct Materials Cost Variance ( - ) x =
8. Calculate the direct materials efficiency variance. Selecttheâ formula, then enter the amounts and compute the efficiencyvariance for direct materials and identify whether the variance isfavorableâ (F) or unfavorableâ (U). ( Actual Quantity - â¼ ) xStandard Cost = Direct Materials Efficiency Variance ( - ) x =
9. Calculate the total direct materials variance and identifywhether the variance is favorable or unfavorable. The total directmaterials variance is .
10. Calculate the direct labor cost variance. Select theâformula, then enter the amounts and compute the cost variance fordirect labor and identify whether the variance is favorableâ (F) orunfavorableâ (U). ( Actual Cost - Standard Cost ) x â¼ = DirectLabor Cost Variance ( - ) x =
11. Calculate the direct labor efficiency variance. Select theâformula, then enter the amounts and compute the efficiency variancefor direct labor and identify whether the variance is favorableâ(F) or unfavorableâ (U). ( Actual Quantity - Standard Quantity ) xâ¼ = Direct Labor Efficiency Variance ( - ) x =
12. Calculate the total direct labor variance and identifywhether the variance is favorable or unfavorable. The total directlabor variance is . Choose from any list or enter any number in theinput fields and then continue to the next question.
Data Table
Direct materials cost standard $7.00 per yard of fabric
Direct materials efficiency standard 1.70 yards per shirt
Actual amount of fabric purchased and used 2,620 yards
Actual cost of fabric purchased and used $18,602
Direct labor cost standard $12.00 per DLHr
Direct labor efficiency standard 3.00 DLHr per shirt
Actual amount of direct labor hours 4,890 DLHr
Actual cost of direct labor $57,702
Related questions
Longman Company manufactures shirts. During Juneâ, Longman made 1,900 shirts but had budgeted production at 2,150 shirts. Longman gathered the following additionalâ data:
| Variable overhead cost standard | $0.80 per DLHr |
| Direct labor efficiency standard | 4.50 DLHr per shirt |
| Actual amount of direct labor hours | 8,620 DLHr |
| Actual cost of variable overhead | $10,344 |
| Fixed overhead cost standard | $0.10 per DLHr |
| Budgeted fixed overhead | $968 |
| Actual cost of fixed overhead | $1,033 |
Calculate the variable overhead cost variance.
Select theâ formula, then enter the amounts and compute the cost variance for variable overheadâ (VOH) and identify whether the variance is favorableâ (F) or unfavorableâ (U).
| ( | - | ) | x | = | VOH Cost Variance | |||||||||||
| ( | - | ) | x | = | ||||||||||||
Calculate the variable overhead efficiency variance.
Select theâ formula, then enter the amounts and compute the efficiency variance for variable overhead and identify whether the variance is favorableâ (F) or unfavorableâ (U).
| ( | - | ) | x | = | VOH Efficiency Variance | |||||||||||
| ( | - | ) | x | = | ||||||||||||
Calculate the total variable overhead variance
| The total variable overhead variance is? Is it favorable or unfavorable? | . |
Calculate the fixed overhead cost variance
Select theâ formula, then enter the amounts and compute the cost variance for fixed overheadâ (FOH) and identify whether the variance is favorableâ (F) or unfavorableâ(U).
| - | = | Fixed Overhead Cost Variance | ||||
| - | = | |||||
Calculate the fixed overhead volume variance
âFirst, select theâ formula, then enter the amounts and compute the fixed overhead allocated to production. â(Abbreviations used: SQâ = standardâ quantity, AOâ = actualâoutput.)
| x | = | Overhead allocated to production | ||
| x | = |
âNow, select theâ formula, then enter the amounts and compute the fixed overhead volume variance and identify whether the variance is favorableâ (F) or unfavorableâ(U).
| - | = | Fixed Overhead Volume Variance | |||||||
| - | = | ||||||||
Calculate the total fixed overhead variance.
The total fixed overhead variance is BLANK, is it favorable or unfavorable?
Smithson Company Manufacturers shirts. During June, Smithson made 1,500 shirts but had budgeted production at 1,575 shirts. Smithson gathered the following additional data:
| Variable overhead cost standard | $1.00 per DLHr |
| Direct labor efficiency standard | 4.50 DLHr per shirt |
| Actual amount of direct labor hours | 6,890 DLHr |
| Actual cost of variable overhead | $7,579 |
| Fixed overhead cost standard | $0.40 per DLHr |
| Budgeted fixed overhead | $2,835 |
| Actual cost of fixed overhead | $2,945 |
Calculate the variable overhead cost variance.
Select theâ formula, then enter the amounts and compute the cost variance for variable overheadâ (VOH) and identify whether the variance is favorableâ (F) or unfavorableâ (U).
| ( | - | ) | x | = | VOH Cost Variance | |||||
| ( | - | ) | x | = | ||||||
Calculate the variable overhead efficiency variance.
Select theâ formula, then enter the amounts and compute the efficiency variance for variable overhead and identify whether the variance is favorableâ (F) or unfavorableâ (U).
| ( | - | ) | x | = | VOH Efficiency Variance | |||||
| ( | - | ) | x | = | ||||||
Calculate the total variable overhead variance
The total variable overhead variance is BLANK, is it favorable or unfavorable?
Calculate the fixed overhead cost variance
Select theâ formula, then enter the amounts and compute the cost variance for fixed overheadâ (FOH) and identify whether the variance is favorableâ (F) or unfavorableâ(U).
| - | = | Fixed Overhead Cost Variance | ||||
| - | = | |||||
âNow, select theâ formula, then enter the amounts and compute the fixed overhead volume variance and identify whether the variance is favorableâ (F) or unfavorableâ(U).
| - | = | Fixed Overhead Volume Variance | ||||
| - | = | |||||
Calculate the total fixed overhead variance.
The total fixed overhead variance is BLANK, is it favorable or unfavorable?
Topaz Company makes one product andhas set the following standards for materials and labor:
| DirectMaterials | Direct Labor | |||
| Standard quantity or hours per unit | ?pounds | 2.50 | hours | |
| Standard price or rate | ? perpound | $ | 8.50 | per hour |
| Standard cost per unit | ? | $ | 21.25 | |
During the past month, the companypurchased 6,700 pounds of direct materials at a cost of $17,085.All of this material was used in the production of 1,300 units ofproduct. Direct labor cost totaled $24,750 for the month. Thefollowing variances have been computed: |
| Materials quantity variance | $ | 1,120 | U |
| Total materials spending variance | $ | 555 | F |
| Labor efficiency variance | $ | 4,250 | F |
| Required: |
| 1. | Fordirect materials: |
| a. | Compute the standard price per poundfor materials. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.) |
| Standard price | $ |
| b. | Compute the standard quantityallowed for materials for the month%u2019s production. (Round your intermediatecalculation to 2 decimal places.) |
| Standard quantity | pounds |
| c. | Compute the standard quantity ofmaterials allowed per unit of product. (Round your answer to 2 decimalplaces.) |
| Standard quantity | pounds per unit |
| 2. | Fordirect labor: |
| a. | Compute the actual direct labor cost per hour for the month.(Round your answerto 2 decimal places.) |
| Actual direct labor cost per hour |
| b. | Compute the labor rate variance.(Do not roundintermediate calculations. Round your answer to the nearest dollar.Indicate the effect of variance by selecting "F" for favorable, "U"for unfavorable, and "None" for no effect (i.e., zero variance).Input all amounts as positive values. Leave no cells blank - becertain to enter "0" wherever required.) |
| Labor rate variance | $ |
