required complete charts 1 through 3 hapter 08 Pre- built Assignment ztomheducat
ID: 2531015 • Letter: R
Question
required complete charts 1 through 3
hapter 08 Pre- built Assignment ztomheducation.com/hm.tpx Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,020 each month to produce 2,040 sets of covers. The standard costs associated with this level of production are Per Set Total of $37,740 $18.50 Direct materials Direct labor Variable manufacturing overhead $ 9,180 4.50 $ 2,448 1.20 $24 20 based on direct labor-hours) During August, the factory worked only 1,000 direct labor-hours and produced 2 900 sets of covers The following actual costs were recorded during the month Per Set of Covers Total Direct materials (9,100 yards) Direct labor $52 780 $18.20 $ 13,630 4.70 S 4,6401.60 Variable manufacturing overhead $24.50 At standard, each set of covers should require 2 50 yards of material All of the materials purchased during the month were used in production Required: 1 Compute the materials price and quantity variances for August Input all amounts as positive values Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and None for no effect (i.e, zero variance).) Materials price variance Materials quantity variance 2. Compute the labor rate and efficiency variances tor August. (Ioput all amounts as positive values. Indicate the effact of each variance by selecting " None" for no effect lie, zero variance) for favorable, U" for unfavorable, and O Type here to search ?? ..MExplanation / Answer
Std quantity allowed for actual output (2900*2.50): 7250 yards Std price per yard (18.50/2.50): $ 7.40 per yard. Actual Qty used: 9100 yards Actual price per yard (52780/9100): $ 5.80 per yard Material Price variance: Actual qty (Std price-Actual price) 9100 (7.40-5.80) = $ 14,560 Fav Material Quantity Variance: Std price (Std qty-Actual qty) 7.40 (7250-9100) = $ 13,690 Unfav Material price 14560 F Material Quantity 13690 U Std labour hours allowed (2900*0.50): 1450 hours Std labour rate per hour:(4.50/0.50): $ 9.00 per hour Actual labour hourrs: 1000 hours Actual rate per hour (13630/1000): $ 13.63 per hour Labour rate variance: Actual hours(Std rate-Actual rate) 1000 (9.00-13.63): 4630 Unfav Labour Efficiency Variance: Std rate (Std hours-Actual hours) 9.00 (1450-1000)= $ 4050 Fav Labour rate 4630 U Labour efficienccy 4050 F Std variable OH rate per hour: (1.20/0.50): $ 2.40 per hour Actual variable OH rate per hour: (4640/1000): $ 4.64 per hour Variable OH rate variance: Actual hours(Std rate -Actual rate per hour) 1000 (2.40-4.64)= $ 2240 Unfav Variable OH efficiency Variance: Std rate (Std hours-Actual hours) 2.40 (1450-1000)= $ 1080 Fav Variable Rate variance 2240 U Variable Efficiency 1080 F
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