First Trax Company manufactures snowboards. Its standard cost information follows. Direct materials (fiberglass) Direct labor Standard Quantity 12 square feet 5 hours Variable manufacturing overhead (25% of direct labor cost) Fixed manufacturing overhead ($60,000 = 500 units) First Trax has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass purchased and used Cost of fiberglass purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 5 hours Standard Price (Rate) $6 per square feet $ 16 per hour $4 per hour 600 7,800 $ 42,900 2,700 $ 40,500 $ 12,600 $ 62,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for First Trax 2. Calculate the direct labor rate, efficiency, and total spending variances for First Trax. 3. Calculate the variable overhead rate, efficiency, and total spending variances for First Trax. Standard Unit Cost $ 72.00 80.00 20.00 120.00
First Trax Company manufactures snowboards. Its standard cost information follows. Direct materials (fiberglass) Direct labor Standard Quantity 12 square feet 5 hours Variable manufacturing overhead (25% of direct labor cost) Fixed manufacturing overhead ($60,000 = 500 units) First Trax has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass purchased and used Cost of fiberglass purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 5 hours Standard Price (Rate) $6 per square feet $ 16 per hour $4 per hour 600 7,800 $ 42,900 2,700 $ 40,500 $ 12,600 $ 62,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for First Trax 2. Calculate the direct labor rate, efficiency, and total spending variances for First Trax. 3. Calculate the variable overhead rate, efficiency, and total spending variances for First Trax. Standard Unit Cost $ 72.00 80.00 20.00 120.00
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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