50.1K

Verified Solution

Link Copied!

Exercise 16-43 (Appendix used in requirement [c]) Comprehensive Cost Variance Analysis (LO 16-5, 6, 7) Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 92,000 tires for $40 each. Budgeted production was 100,000 tires. Standard variable costs per tire follow: Direct materials: 4 pounds at $2 Direct labor: 0.4 hours at $18 Variable production overhead: 0.18 machine-hours at $10 per hour Total variable costs $ 8.00 7.20 1.80 $17.00 Fixed production overhead costs: Monthly budget $1,350,000 Fixed overhead is applied at the rate of $15 per tire. Actual production costs: Direct materials purchased and used: 384.000 pounds at $1.80 Direct labor: 35,200 hours at $18.40 Variable overhead: 17,280 machine-hours at $10.20 per hour Fixed overhead $ 691,200 647,680 176,256 1,360,000 Required: a. Prepare a cost variance analysis for each variable cost for Maple Leaf Productions. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct Materials Direct Labor Variable Overhead Actual costs Actual inputs at standard price Flexible budget Price variance Efficiency variance Cost variance b. Prepare a fixed overhead cost variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Total fixed overhead cost variance View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 12 Record entry for direct material costs payable and material variances. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record entry for direct labor costs payable and labor variances. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the entry for variable overhead applied. Note: Enter debits before credits. Event General Journal Debit Credit 3 Record entry Clear entry View general journal Journal entry worksheet Record the variable overhead variances. Note: Enter debits before credits. General Journal Debit Credit Event 5 Record entry Clear entry View general journal Journal entry worksheet Record the fixed overhead variances. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record entry to transfer finished goods to inventory. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record entry to transfer finished goods to inventory. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer