Sven Enterprises is a large producer of gourmet pet food. During April, it produ

Question

Sven Enterprises is a large producer of gourmet pet food. During April, it produced 147 batches of
puppy meal. Each batch weighs 1,000 pounds. To produce this quantity of output, the company pur-
chased and used 148,450 pounds of direct materials at a cost of $593,800. It also incurred direct labor
costs of $17,600 for the 2,200 hours worked by employees on the puppy meal crew. Manufacturing
overhead incurred at the puppy meal plant during April totaled $3,625, of which $2,450 was consid-
ered fixed. Sven

Explanation / Answer

a Materials Price Variance = $593,800 - ($4.20 x 148,450) = $29,690 Favorable Materials Quantity Variance = ($4.20 x 148,450) - ($4.20 x 147 x 1,000) = $6,090 Unfavorable b Labor Rate Variance = $17,600 - ($8.50 x 2,200) =$1,100 Favorable Labor Efficiency Variance = ($8.50 x 2,200) - ($8.50 x 147 x 14) = $1,207 Unfavorable c VOH Spending Variance = $1,175 - ($9 x 140) = $85 Favorable VOH Efficiency Variance =($9 x 140) - ($9 x 147) = $63 Favorable FOH Spending Variance = $2,450 - ($20 x 140) = $350 Favorable FOH Efficiency Variance = ($20 x 140) - ($20 x 147) = $140 Favorable d Work In Process Inventory    6,17,400 Materials Quantity Variance-Unfavorable         6,090 Materials Price Variance-Favorable       29,690 Materials Inventory    5,93,800 e Work In Process Inventory       17,493 Labor Efficiency Variance-Unfavorable         1,207 Labor Rate Variance-Favorable         1,100 Factory Labor       17,600 f Work In Process Inventory         4,263 VOH Spending Variance (Favorable)             85 VOH Efficiency Variance (Favorable)             63 FOH Spending Variance (Favorable)            350 FOH Efficiency Variance (Favorable)            140 Manufacturing Overhead         3,625 g Finished Goods Inventory    6,39,156 Work In Process Inventory    6,39,156 h Materials Price Variance-Favorable       29,690 Labor Rate Variance-Favorable         1,100 VOH Spending Variance (Favorable)             85 VOH Efficiency Variance (Favorable)             63 FOH Spending Variance (Favorable)            350 FOH Efficiency Variance (Favorable)            140 Materials Quantity Variance-Unfavorable         6,090 Labor Efficiency Variance-Unfavorable         1,207 Cost of Goods Sold       24,131

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

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