Helix Company produces several products in its factory, including a karate robe. The company uses...

80.2K

Verified Solution

Question

Accounting

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 should work 1,230 direct labor-hours each month and produce 2,050 robes. The standard costs associated with this level of production are as follows:

Total Per Unit of Product
Direct materials $ 27,675 $ 13.50
Direct labor $ 8,610 4.20

Variable manufacturing overhead (based on direct labor-hours)

$ 4,920 2.40

$ 20.10

During April, the factory worked only 800 direct labor-hours and produced 1,500 robes. The following actual costs were recorded during the month:

Total Per Unit of Product
Direct materials (3,900 yards) $ 19,500 $ 13.00
Direct labor $ 6,600 4.40

Variable manufacturing overhead

$ 4,800 3.20
$ 20.60

At standard, each robe should require 1.80 yards of material. All of the materials purchased during the month were used in production.

Required:
1.

Compute the materials price and quantity variances for April: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)

Standard Price Actual Price Actual Quantity = Variance
Materials price variance 0
= Variance
Materials quantity variance 0

2.

Compute the labor rate and efficiency variances for April: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)

Standard Rate Actual Rate Actual Hours = Variance
Labor rate variance 0
= Variance
Labor efficiency variance 0

3.

Compute the variable manufacturing overhead rate and efficiency variances for April: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)

Standard Rate Actual Rate Actual Hours = Variance
Variable overhead rate variance 0
= Variance
Variable overhead efficiency variance 0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students