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Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory has a denominator activity level of 780 direct labour-hours each month, which should result in the production of 1,950 robes. The standard costs associated with this level of production are as follows: 80 Direct materials Direct labour Variable manufacturing overhead* Fixed manufacturing overhead* *Based on direct labour-hours Direct materials (6,000 metres) Direct labour Variable manufacturing overhead Fixed manufacturing overhead During April, the factory worked only 760 direct labour-hours and produced 2,000 robes. The following actual costs were recorded during the month: ssibility: Good to go Total $35,490 $7,020 $2,340 $4,680 O Total d Per Unit of Product $36,000 $7,600 $3,800 $4,600 $18.20 3.60 1.20 2.40 $25.40 Per Unit of Product At standard, each robe should require 2.8 metres of material. All of the materials purchased during the month were used in production. $18.00 3.80 1.90 Required: Compute the following variances for April: 1. The materials price and quantity variances. 2. The labour rate and efficiency variances. 3. The variable manufacturing overhead spending and efficiency variances. 4. The fixed manufacturing overhead budget and volume variances. 2.30 $26.00 8 DII →>

Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory has a denominator activity level of 780 direct labour-hours each month, which should result in the production of 1,950 robes. The standard costs associated with this level of production are as follows: 80 Direct materials Direct labour Variable manufacturing overhead* Fixed manufacturing overhead* *Based on direct labour-hours Direct materials (6,000 metres) Direct labour Variable manufacturing overhead Fixed manufacturing overhead During April, the factory worked only 760 direct labour-hours and produced 2,000 robes. The following actual costs were recorded during the month: ssibility: Good to go Total $35,490 $7,020 $2,340 $4,680 O Total d Per Unit of Product $36,000 $7,600 $3,800 $4,600 $18.20 3.60 1.20 2.40 $25.40 Per Unit of Product At standard, each robe should require 2.8 metres of material. All of the materials purchased during the month were used in production. $18.00 3.80 1.90 Required: Compute the following variances for April: 1. The materials price and quantity variances. 2. The labour rate and efficiency variances. 3. The variable manufacturing overhead spending and efficiency variances. 4. The fixed manufacturing overhead budget and volume variances. 2.30 $26.00 8 DII →>

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
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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te. Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory has a denominator activity level of 780 direct labour-hours each month, which should result in the production of 1,950 robes. The standard costs associated with this level of production are as follows: 80 Direct materials Direct labour Variable manufacturing overhead* Fixed manufacturing overhead* *Based on direct labour-hours Direct materials (6,000 metres) Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total $35,490 $7,020 $2,340 $4,680 During April, the factory worked only 760 direct labour-hours and produced 2,000 robes. The following actual costs were recorded during the month: Accessibility: Good to go Total $36,000 $ 7,600 Per Unit of Product $3,800 $4,600 $18.20 3.60 1.20 2.40 $25.40 Per Unit of Product $18.00 3.80 1.90 2.30 $26.00 At standard, each robe should require 2.8 metres of material. All of the materials purchased during the month were used in production. Required: Compute the following variances for April: 1. The materials price and quantity variances. 2. The labour rate and efficiency variances. 3. The variable manufacturing overhead spending and efficiency variances. 4. The fixed manufacturing overhead budget and volume variances. DII го F9 Focus
Transcribed Image Text:te. Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory has a denominator activity level of 780 direct labour-hours each month, which should result in the production of 1,950 robes. The standard costs associated with this level of production are as follows: 80 Direct materials Direct labour Variable manufacturing overhead* Fixed manufacturing overhead* *Based on direct labour-hours Direct materials (6,000 metres) Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total $35,490 $7,020 $2,340 $4,680 During April, the factory worked only 760 direct labour-hours and produced 2,000 robes. The following actual costs were recorded during the month: Accessibility: Good to go Total $36,000 $ 7,600 Per Unit of Product $3,800 $4,600 $18.20 3.60 1.20 2.40 $25.40 Per Unit of Product $18.00 3.80 1.90 2.30 $26.00 At standard, each robe should require 2.8 metres of material. All of the materials purchased during the month were used in production. Required: Compute the following variances for April: 1. The materials price and quantity variances. 2. The labour rate and efficiency variances. 3. The variable manufacturing overhead spending and efficiency variances. 4. The fixed manufacturing overhead budget and volume variances. DII го F9 Focus
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