Standard Standard Price Standard Quantity 4.00 sq. ft. $ 2.60 per sq. ft. 1 hrs. (Rate) Unit Cost Direct materials (cork board) $10.40 Direct labor $10.00 per hr. 10.00 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($52,500 + 150,000 units) 1 hrs. $ 0.65 per hr. 0.65 0.35 Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard used 130,000 530,000 $1,325,000 140,000 $1,274,000 93,000 67,000 Cost of corkboard used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Required: 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. 2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye. 3. Calculate the variable overhead rate, efficiency, and total spending variances for Bullseye. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the direct materials price, quantity, and total spending variances for Bullseye. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance

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 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...

See similar textbooks

Related questions

Concept explainers

Question

Bullseye Company manufactures dartboards. Its standard cost information follows:

	Standard Quantity	Standard Price (Rate)	Standard Unit Cost
Direct materials (cork board)	4.00	sq. ft.	$	2.60	per sq. ft.	$	10.40
Direct labor	1	hrs.	$	10.00	per hr.		10.00
Variable manufacturing overhead (based on direct labor hours)	1	hrs.	$	0.65	per hr.		0.65
Fixed manufacturing overhead ($52,500 ÷ 150,000 units)							0.35

Bullseye has the following actual results for the month of September:


Number of units produced and sold		130,000
Number of square feet of corkboard used		530,000
Cost of corkboard used	$	1,325,000
Number of labor hours worked		140,000
Direct labor cost	$	1,274,000
Variable overhead cost	$	93,000
Fixed overhead cost	$	67,000

Required:
1. Calculate the direct materials price, quantity, and total spending variances for Bullseye.
2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.
3. Calculate the variable overhead rate, efficiency, and total spending variances for Bullseye.

Standard
Standard Price
Standard
Quantity
4.00 sq. ft. $ 2.60 per sq. ft.
1 hrs.
(Rate)
Unit Cost
Direct materials (cork board)
$10.40
Direct labor
$10.00 per hr.
10.00
Variable manufacturing overhead
(based on direct labor hours)
Fixed manufacturing overhead
($52,500 + 150,000 units)
1 hrs.
$ 0.65 per hr.
0.65
0.35
Bullseye has the following actual results for the month of September:
Number of units produced and sold
Number of square feet of corkboard used
130,000
530,000
$1,325,000
140,000
$1,274,000
93,000
67,000
Cost of corkboard used
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
Required:
1. Calculate the direct materials price, quantity, and total spending variances for Bullseye.
2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.
3. Calculate the variable overhead rate, efficiency, and total spending variances for Bullseye.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Calculate the direct materials price, quantity, and total spending variances for Bullseye. (Do not round your intermediate
calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect
(i.e., zero variance).)
Direct Materials Price Variance
Direct Materials Quantity Variance
Direct Materials Spending Variance

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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