eD Cost Accountung&Budgetary; Control DeBean white 11/2/178:30 PM Homework: Chap
ID: 2561736 • Letter: E
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eD Cost Accountung&Budgetary; Control DeBean white 11/2/178:30 PM Homework: Chapter 7 Score: 0 of 5 pts P7-39 (similar to Oso Bay Sufboards manufactures iberglass sunboards. The standard cost of direct materials and direct manufacturing labor is $166 per board. This includes 20 pounds of direct materials, at the budgeted price of $2 Save 5of6pcomplete) Hw Score: 0%, 0 of 18pts Question Help per pound, and 9 hours of direct manufacturing labor, at the budgebed rate of $14.00 per hour. Following are additional data for the month of July. (Cick the icon to view the data.) Read the requirements Data Table nt 1·Compte direct manuadring labor variances Price variance Emiciency variance Flexible-budget variance 5,800 units 140,000 pounds 462,000 Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labor-hours Actual direct labor cost Direct materials efficienay variance 42,000 hours ,400 F There were no beginning inventories Print Done Choose from any list or enter any number in the input fields and then click Check Answer Clear All Check AnswerExplanation / Answer
Req1: Actual production 5800 units Std hours allowed per unit 9 hours Total std hours allowed 52200 hours (5800*9) Std rate per hour $ 14 per hour Std labour cost fr actual ouput $730,800 (52200 hours@14) Actual labour cost Labour cost variance = Std labour cost for actual ouput - Actual labour cost incurred (730800-609,000) = $121,800 favorable Req 2: Std pound of material required per unit of output 20 pounds per unit Total Std Qty required fr actual output(5800*20)= 116,000 pounds Std price per pound $2 per pound Actual material purchase 140,000 pounds Actual material cost $462,000 Actual price per pound ( 462,000/140000) = $ 3.30 per pound Material efficeincy variance= Std price per pound (Std Qty allowed for actual production- Actual Qty consumed) 1400 = 2 ( 116,000 - Actual Material Qty consumed) Therfore, Actual Quantity used during production = 115,300 pounds Req3: Actual material purchase 140,000 pounds Actual material cost $462,000 Actual price per pound ( 462,000/140000) = $ 3.30 per pound Req4: Material Price Variance = Actual Qty consumed (Std price per pound - Actual price per pound) 115,300 ( 2.00 -3.30 ) = $ 149,890 unfavorable
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