CUSTOM COST ACCT 2521 SWP W/ ACCESS
17th Edition
ISBN: 9781323674116
Author: Pearson
Publisher: Pearson Custom Publishing
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Chapter 8, Problem 8.44P
Review of Chapters 7 and 8, 3-
| Input | Cost per Output Unit | |
| Direct materials | 5 lb. at $4 per lb. | $ 20.00 |
| Direct manufacturing labor | 4 hrs. at $16 per hr. | 64.00 |
| Manufacturing overhead: | ||
| Variable | $8 per DLH | 32.00 |
| Fixed | $9 per DLH | 36.00 |
| $152.00 |
The denominator level for total manufacturing overhead per month in 2017 is 37,000 direct manufacturing labor-hours. Beal’s budget for January 2017 was based on this denominator level. The records for January indicated the following:
| Direct materials purchased | 40,300 lb. at $3.80 per lb. |
| Direct materials used | 37,300 lb. |
| Direct manufacturing labor | 31,400 hrs. at $16.25 per hr. |
| Total actual manufacturing overhead (variable and fixed) | $650,000 |
| Actual production | 7,600 output units |
- A. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2017.
Required
- B. For the month of January 2017, compute the following variances, indicating whether each is favorable (F) or unfavorable (U):
- a. Direct materials price variance, based on purchases
- b. Direct materials efficiency variance
- c. Direct manufacturing labor price variance
- d. Direct manufacturing labor efficiency variance
- e. Total manufacturing overhead spending variance
- f. Variable manufacturing overhead efficiency variance
- g. Production-volume variance
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Chapter 8 Solutions
CUSTOM COST ACCT 2521 SWP W/ ACCESS
Ch. 8 - How do managers plan for variable overhead costs?Ch. 8 - How does the planning of fixed overhead costs...Ch. 8 - How does standard costing differ from actual...Ch. 8 - What are the steps in developing a budgeted...Ch. 8 - What are the factors that affect the spending...Ch. 8 - Assume variable manufacturing overhead is...Ch. 8 - Describe the difference between a direct materials...Ch. 8 - What are the steps in developing a budgeted fixed...Ch. 8 - Why is the flexible-budget variance the same...Ch. 8 - Explain how the analysis of fixed manufacturing...
Ch. 8 - Provide one caveat that will affect whether a...Ch. 8 - The production-volume variance should always be...Ch. 8 - What are the variances in a 4-variance analysis?Ch. 8 - Overhead variances should be viewed as...Ch. 8 - Describe how flexible-budget variance analysis can...Ch. 8 - Each of the following statements is correct...Ch. 8 - Steed Co. budgets production of 150,000 units in...Ch. 8 - As part of her annual review of her companys...Ch. 8 - Culpepper Corporation had the following...Ch. 8 - Fordham Corporation produces a single product. The...Ch. 8 - Variable manufacturing overhead, variance...Ch. 8 - Fixed manufacturing overhead, variance analysis...Ch. 8 - Variable manufacturing overhead variance analysis....Ch. 8 - Fixed manufacturing overhead variance analysis...Ch. 8 - Manufacturing overhead, variance analysis. The...Ch. 8 - 4-variance analysis, fill in the blanks. ProChem...Ch. 8 - Straightforward 4-variance overhead analysis. The...Ch. 8 - Straightforward coverage of manufacturing...Ch. 8 - Overhead variances, service sector. Meals Made...Ch. 8 - Total overhead, 3-variance analysis. Pampered...Ch. 8 - Production-volume variance analysis and...Ch. 8 - Overhead variances, service setting. Carlyle...Ch. 8 - Identifying favorable and unfavorable variances....Ch. 8 - Flexible-budget variances, review of Chapters 7...Ch. 8 - Comprehensive variance analysis. Cooking Whiz...Ch. 8 - Journal entries (continuation of 8-35). A. Prepare...Ch. 8 - Graphs and overhead variances. Best Around, Inc.,...Ch. 8 - Overhead variance, missing information. Consider...Ch. 8 - Flexible budgets, 4-variance analysis. (CMA,...Ch. 8 - Activity-based costing, batch-level variance...Ch. 8 - Overhead variances and sales-volume variance. The...Ch. 8 - Activity-based costing, batch-level variance...Ch. 8 - Comprehensive review of Chapters 7 and 8, working...Ch. 8 - Review of Chapters 7 and 8, 3-variance analysis....Ch. 8 - Nonfinancial variances. Kathys Kettle Potato Chips...Ch. 8 - Overhead variances, service sector. Cavio is a...Ch. 8 - Direct-cost and overhead variances, income...Ch. 8 - Overhead variances, ethics. Carpenter Company uses...
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY