Homework Help is Here – Start Your Trial Now!
Business
Accounting
Drifblim Fine Furniture Inq Drifblim Fine Furniture Inc manufactures house decors. Brass sculptures are its best seller. The normal selling price of a piece of sculpture is P3,000. Drifblim has total assets amounting to P2,500,000 and liabilities of P1,500,000. Cost structure of the firm: • Fixed Costs: producing and marketing their pieces brass of sculptures is P500,000 • Variable costs per unit are the manufacturing costs (materials, labor and overhead) and marketing costs of P400. Production data: After careful study of the production processes, it was determined that manufacturing overhead was closely related to material usage. Thus manufacturing overhead to production is allocated based on pounds of materials used. The following are the production standards: (5) Labor Efficiency Variance (6) Variable MOH Rate Variance (7) Input 0.3 lb at P100/lb 1.2 hrs at P200/hr P60/lb x 0.3 lb Direct Material (brass) Direct Labor Variable Manufacturing overhead Actual results for August 2022 are as follows: Production Direct Material Purchased Direct Materials Used Direct Labor Variable Manufacturing overhead As a management accountant and business analyst for Drifblim, the undertakings are as follows: A. Variance Analysis. Ascertain whether each is favorable (F) or unfavorable (U) and recommendations for improvement. Variable MOH Efficiency Variance: 35,000 sculptures 12,000 lb at P110/lb 10,450 lbs Cost/ Sculpture 38,500 hrs for P8,085,000 P641,500 30.00 240.00 18.00

Drifblim Fine Furniture Inq Drifblim Fine Furniture Inc manufactures house decors. Brass sculptures are its best seller. The normal selling price of a piece of sculpture is P3,000. Drifblim has total assets amounting to P2,500,000 and liabilities of P1,500,000. Cost structure of the firm: • Fixed Costs: producing and marketing their pieces brass of sculptures is P500,000 • Variable costs per unit are the manufacturing costs (materials, labor and overhead) and marketing costs of P400. Production data: After careful study of the production processes, it was determined that manufacturing overhead was closely related to material usage. Thus manufacturing overhead to production is allocated based on pounds of materials used. The following are the production standards: (5) Labor Efficiency Variance (6) Variable MOH Rate Variance (7) Input 0.3 lb at P100/lb 1.2 hrs at P200/hr P60/lb x 0.3 lb Direct Material (brass) Direct Labor Variable Manufacturing overhead Actual results for August 2022 are as follows: Production Direct Material Purchased Direct Materials Used Direct Labor Variable Manufacturing overhead As a management accountant and business analyst for Drifblim, the undertakings are as follows: A. Variance Analysis. Ascertain whether each is favorable (F) or unfavorable (U) and recommendations for improvement. Variable MOH Efficiency Variance: 35,000 sculptures 12,000 lb at P110/lb 10,450 lbs Cost/ Sculpture 38,500 hrs for P8,085,000 P641,500 30.00 240.00 18.00

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
See similar textbooks
icon
Related questions
Question

Please help me to solve this problem 

Drifblim Fine Furniture Inc Drifblim Fine Furniture Inc manufactures house decors. Brass sculptures are its best seller. The normal selling price of a piece of sculpture is P3,000. Drifblim has total assets amounting to P2,500,000 and liabilities of P1,500,000. Cost structure of the firm: • Fixed Costs: producing and marketing their pieces brass of sculptures is P500,000 • Variable costs per unit are the manufacturing costs (materials, labor and overhead) and marketing costs of P400. Production data: After careful study of the production processes, it was determined that manufacturing overhead was closely related to material usage. Thus manufacturing overhead to production is allocated based on pounds of materials used. The following are the production standards: Input 0.3 lb at P100/lb 1.2 hrs at P200/hr P60/lb x 0.3 lb Direct Material (brass) Direct Labor Variable Manufacturing overhead Actual results for August 2022 are as follows: Production Direct Material Purchased Direct Materials Used Direct Labor Variable Manufacturing overhead As a management accountant and business analyst for Drifblim, the undertakings are as follows: (5) Labor Efficiency Variance (6) Variable MOH Rate Variance (7) Variable MOH Efficiency Variance: 35,000 sculptures 12,000 lb at P110/lb 10,450 lbs 38,500 hrs for P8,085,000 P641,500 Cost/ Sculpture A. Variance Analysis. Ascertain whether each is favorable (F) or unfavorable (U) and recommendations for improvement. P P P 30.00 240.00 18.00
Transcribed Image Text:Drifblim Fine Furniture Inc Drifblim Fine Furniture Inc manufactures house decors. Brass sculptures are its best seller. The normal selling price of a piece of sculpture is P3,000. Drifblim has total assets amounting to P2,500,000 and liabilities of P1,500,000. Cost structure of the firm: • Fixed Costs: producing and marketing their pieces brass of sculptures is P500,000 • Variable costs per unit are the manufacturing costs (materials, labor and overhead) and marketing costs of P400. Production data: After careful study of the production processes, it was determined that manufacturing overhead was closely related to material usage. Thus manufacturing overhead to production is allocated based on pounds of materials used. The following are the production standards: Input 0.3 lb at P100/lb 1.2 hrs at P200/hr P60/lb x 0.3 lb Direct Material (brass) Direct Labor Variable Manufacturing overhead Actual results for August 2022 are as follows: Production Direct Material Purchased Direct Materials Used Direct Labor Variable Manufacturing overhead As a management accountant and business analyst for Drifblim, the undertakings are as follows: (5) Labor Efficiency Variance (6) Variable MOH Rate Variance (7) Variable MOH Efficiency Variance: 35,000 sculptures 12,000 lb at P110/lb 10,450 lbs 38,500 hrs for P8,085,000 P641,500 Cost/ Sculpture A. Variance Analysis. Ascertain whether each is favorable (F) or unfavorable (U) and recommendations for improvement. P P P 30.00 240.00 18.00
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Chain Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS