Having trouble with number 2 parts e, f, and g. 8-39 Rewiew of Chapers 7 and 8,

Question

Having trouble with number 2 parts e, f, and g.

8-39 Rewiew of Chapers 7 and 8, 3-variance analysis. ICPA, adapted) The Brown Manufacturing Company?s costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of 2014, Beal adapted the following standards for its manufacturing costs: The denominator level for total manufacturing overhead per month in 2014 is 37,000 direct manufacturing labor-hours. Bears flexible budget for January 2014 was based on this denominator level. The records for January indicated the fallowing 1. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2014. 2. Far the month of January 2014, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance, based on purchases b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance

Explanation / Answer

Total cost

Standard manufacturing Cost jan 2014. Actual Budgeted standard Details Qty/unit Per unit Total Total Actual Qty/unit Per unit Total Prodcution              7,600             9,250 Qty/unit Rate Per unit Amt/Unit Qty/unit Rate Per unit Amt/Unit Direct Material used                                    4.91                  3.80              18.65                       5                          4                   20 Direct Labor                                    4.13                16.25              67.14                       4                        16                   64 Variable Mfg OH                33.04              33.04          251,104                        32                   32 Fixed MFG OH                52.49              52.49          398,896                        36                   36

Total cost

                 171                 152 Std qty of material for output 7600            38,000 Std DLH for 7600 output            30,400 Actual direct material used for 7600 unit            37,300 Actual DLH for 7600 units            31,400 Direct Material Price Variance = Actual Qty ( Actual Price-Std Price)            7,460.00 F Dierct Material Efficicency Variance = Std Rate( Actual qty-std qty)          2,800.00 F Direct Labor Price variance = Actual DLH ( Actual labor rate-Std labor rate)            7,850.00 U Direct Labor Efficiciency variance    = Std labor Rate( Actual DLH-std DLH)        16,000.00 U Total Mfg OH spending Variance Total OH Spending variance = Actual Direct Labor Hr*( Actual total OH rate-Std total OH Rate)     550,442.00 U Variable OH Efficiency Variance= Std OH rate ( Actual hrs -Std Hrs)        32,000.00 U Production volume variance= Actual production-budgeted production=          1,650.00 U

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.