Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.55BP
Comprehensive standards and variances problem (Learning Objectives 1, 2, 3, 5, & 6)
Nautical Awning manufactures awnings and uses a
| Direct material 18.0 yards per awning at $10.00 per yard |
| Direct labor 2.0 hours per awning at $13.00 per hour |
| Variable MOH standard rate $5.00 per direct labor hour |
| Predetermined fixed MOH standard rate $10.00 per direct labor hour |
| Total budgeted fixed MOH cost $34,000 |
Actual cost and operating data from the most recent month follows:
| Purchased 35.460 yards at a total cost of $333,324 |
| Used 31,300 yards in producing 1.800 awnings |
| Actual direct labor cost of $45,457 for a total of 3,470 hours |
| Actual variable MOH cost $19,085 |
| Actual fixed MOH cost $39,500 |
All manufacturing overhead is allocated on the basis of direct labor hours.
Requirements
- 1. Calculate the standard cost of one awning.
- 2. Calculate the following variances:
- a. The direct material variances.
- b. The direct labor variances.
- c. The variable manufacturing overhead variances.
- d. The fixed manufacturing overhead variances.
- 3. Explain what each of the variances you calculated means and give at least one possible explanation for each of those variances. Are any of the variances likely to be interrelated?
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Please answer parts 5-8 according to the images attached below.
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost
Direct materials
?
$ 5.00
per yard
$ ?
Direct labor
?
?
?
Variable manufacturing overhead
?
$ 2
per direct labor-hour
?
Total standard cost per unit
$ ?
Overhead is applied to production on the basis of direct labor-hours. During March, 780 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:
Materials Used
Direct Labor
Variable Manufacturing Overhead
Total standard cost allowed*
$ 15,600
$ 13,104
$ 2,496
Actual costs incurred
$ 13,112
?
$ 5,491
Materials price variance
?
Materials quantity variance
$ 790
U
Labor rate variance
?
Labor efficiency variance
?
Variable…
A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for
selected activities for next year follows.
Activity
Purchasing
Cleaning factory
Providing utilities
Activity cost pool
Purchasing
Factory
Expected Cost
$127,600
31,500
63,070
Expected
Costs
Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.)
Expected
Amount of
Cost Driver
Cost Driver
Purchase orders
Square feet
Square feet
4,400
4,900
Activity Overhead Rate
Expected Usage of Cost Driver
4,488 purchase orders
4,900 square feet
4,900 square feet
per purchase order
per square foot
Required information
Use the following information for the Problems below. (Algo)
Skip to question
[The following information applies to the questions displayed below.]Tent Master produces Pup tents and Pop-up tents. The company budgets $360,000 of overhead cost and 60,000 direct labor hours. Additional information follows.
Per Unit
Selling Price
Direct Materials
Direct Labor
Pup tent
$ 85
$ 20
$ 47
Pop-up tent
80
27
31
Problem 17-3A (Algo) Using activity-based costing to allocate overhead cost, and compute overhead cost per unit and gross profit per unit LO P3
Activity
Budgeted Cost
Activity Cost Driver
Budgeted Activity Usage
Assembly
$ 240,000
Direct labor hours (DLH)
60,000
Electricity
42,000
Machine hours (MH)
10,000
Materials purchasing
78,000
Purchase orders (PO)
500
Total
$ 360,000
Required:1. Compute an activity rate for each activity using activity-based costing.2. The following actual activity usage produced 10,000 Pup tents and…
Chapter 11 Solutions
Managerial Accounting (5th Edition)
Ch. 11 - (Learning Objective 1) Which of the following is...Ch. 11 - (Learning Objective 2) The direct material price...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - (Learning Objective 4) Which of the following is...Ch. 11 - Prob. 7QCCh. 11 - (Learning Objective 6) Which of the following is...Ch. 11 - Prob. 9QCCh. 11 - (Learning Objective 7Appendix) Which of the...
Ch. 11 - Compute the standard cost of direct materials...Ch. 11 - Compute the standard cost of direct labor...Ch. 11 - Explain a direct material variance (Learning...Ch. 11 - Prob. 11.4SECh. 11 - Calculate direct material variances when the...Ch. 11 - Calculate direct labor variances (Learning...Ch. 11 - Prob. 11.7SECh. 11 - Prob. 11.8SECh. 11 - Calculate fixed overhead variances (Learning...Ch. 11 - Calculate and interpret fixed overhead variances...Ch. 11 - Prob. 11.11SECh. 11 - Calculate and interpret overhead variances...Ch. 11 - Record costing transactions (Learning Objective 7)...Ch. 11 - Record standard costing transactions (Learning...Ch. 11 - Identify ethical standards violated (Learning...Ch. 11 - Vocabulary (Learning Objectives 1, 2, 3, 4, 5, 6)...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Calculate and interpret direct material and direct...Ch. 11 - Calculate the material and labor variances...Ch. 11 - Record materials and labor transactions (Learning...Ch. 11 - Calculate the standard cost of a product before...Ch. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Compute and interpret overhead variances (Learning...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Make journal entries in a standard costing system...Ch. 11 - Prepare a standard cost income statement (Learning...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate the standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Prob. 11.38BECh. 11 - Prob. 11.39BECh. 11 - Prob. 11.40BECh. 11 - Prob. 11.41BECh. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Calculate and interpret overhead variances...Ch. 11 - Prob. 11.44BECh. 11 - Prob. 11.45BECh. 11 - Prob. 11.46BECh. 11 - Prob. 11.47BECh. 11 - Prob. 11.48BECh. 11 - Prob. 11.49APCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Prob. 11.52APCh. 11 - Prob. 11.53APCh. 11 - Prob. 11.54BPCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Work backward through labor variances (Learning...Ch. 11 - Determine all variances and make journal entries...Ch. 11 - Calculate labor variances in a hotel (Learning...
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