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Benson Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow: Planned production Per unit direct materials Per unit direct labor Total estimated fixed overhead costs Benson purchased and used 44,370 pounds of material at an average cost of $1.93 per pound. Labor usage amounted to 55,210 hours at an average of $8.32 per hour. Actual production amounted to 22,600 units. Actual fixed overhead costs amounted to $536,200. The company completed and sold all inventory for $1,980,000. Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Benson uses the number of units as the allocation base. 22,000 units 1.98 pounds@1.90 per pound 2.68 hours@$ 8.28 per hour $ 508,200 f. Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U). g. Determine the amount of gross margin Benson would report on the year-end income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. Materials Variance Information Table Standard price Actual price Standard quantity for flexible budget Actual quantity used per pound per pound pounds pounds < Required A Required B >

Benson Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow: Planned production Per unit direct materials Per unit direct labor Total estimated fixed overhead costs Benson purchased and used 44,370 pounds of material at an average cost of $1.93 per pound. Labor usage amounted to 55,210 hours at an average of $8.32 per hour. Actual production amounted to 22,600 units. Actual fixed overhead costs amounted to $536,200. The company completed and sold all inventory for $1,980,000. Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Benson uses the number of units as the allocation base. 22,000 units 1.98 pounds@1.90 per pound 2.68 hours@$ 8.28 per hour $ 508,200 f. Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U). g. Determine the amount of gross margin Benson would report on the year-end income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. Materials Variance Information Table Standard price Actual price Standard quantity for flexible budget Actual quantity used per pound per pound pounds pounds < Required A Required B >

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 25BEA: During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum...
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Benson Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow: Planned production Per unit direct materials Per unit direct labor Total estimated fixed overhead costs Benson purchased and used 44,370 pounds of material at an average cost of $1.93 per pound. Labor usage amounted to 55,210 hours at an average of $8.32 per hour. Actual production amounted to 22,600 units. Actual fixed overhead costs amounted to $536,200. The company completed and sold all inventory for $1,980,000. Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Benson uses the number of units as the allocation base. 1. Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U). g. Determine the amount of gross margin Benson would report on the year-end income statement. Complete this question by entering your answers in the tabs below. Required C Required A Required B Required D Required E Required F Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. 22,000 units 1.90 pounds@1.90 per pound 2.60 hours@$ 8.20 per hour $ 508,200 Materials Variance Information Table Standard price Actual price Standard quantity for flexible budget Actual quantity used per pound per pound pounds pounds < Required A Required B > Required G
Transcribed Image Text:Benson Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow: Planned production Per unit direct materials Per unit direct labor Total estimated fixed overhead costs Benson purchased and used 44,370 pounds of material at an average cost of $1.93 per pound. Labor usage amounted to 55,210 hours at an average of $8.32 per hour. Actual production amounted to 22,600 units. Actual fixed overhead costs amounted to $536,200. The company completed and sold all inventory for $1,980,000. Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Benson uses the number of units as the allocation base. 1. Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U). g. Determine the amount of gross margin Benson would report on the year-end income statement. Complete this question by entering your answers in the tabs below. Required C Required A Required B Required D Required E Required F Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. 22,000 units 1.90 pounds@1.90 per pound 2.60 hours@$ 8.20 per hour $ 508,200 Materials Variance Information Table Standard price Actual price Standard quantity for flexible budget Actual quantity used per pound per pound pounds pounds < Required A Required B > Required G
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