Problem 16-64 Comprehensive Variance Problem (LO 16 - 5, 6)The standard cost sheet for...

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Accounting

Problem 16-64 Comprehensive Variance Problem (LO 16 - 5, 6)
The standard cost sheet for Chambers Company, which manufacturesone product, follows:

Direct materials, 40yards at $3.00 per yard $ 120
Direct labor, 5 hours at $30 perhour 150
Factory overhead applied at 70%of direct labor 105
(variable costs = $70; fixedcosts = $35)
Variable selling andadministrative 74
Fixed selling andadministrative 50
Total unit costs $ 499

Standards have been computed based on a master budget activitylevel of 29,800 direct labor-hours per month. Actual activity forthe past month was as follows:

Materials used 238,000 yards at $3.15 peryard
Direct labor 28,100 hours at $31.00 per hour
Total factory overhead $ 650,000
Production 5,500 units

Required:
Prepare variance analyses for the variable and fixed costs.Materials are purchased as they are used.(Do not round intermediate calculations.Indicate the effect of each variance by selecting "F" forfavorable, or "U" for unfavorable. If there is no effect, do notselect either option.)
Directmaterials:
Pricevariance
Efficiency variance
Directlabor:
Pricevariance
Efficiency variance
Variableoverhead:
Efficiency variance
Fixedoverhead:
Production volume variance

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4.5 Ratings (835 Votes)

Direct materials 40 yards at 300 per yard 120 Direct labor 5 hours at 30 per hour 150 Factory overhead applied at 70 of direct labor 105 variable costs 70 fixed costs 35 Variable selling and administrative 74 Fixed selling and administrative 50 Total unit costs 499 SP Standard material Price per See Answer

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In: AccountingProblem 16-64 Comprehensive Variance Problem (LO 16 - 5, 6)The standard cost sheet for Chambers...Problem 16-64 Comprehensive Variance Problem (LO 16 - 5, 6)The standard cost sheet for Chambers Company, which manufacturesone product, follows: Direct materials, 40yards at $3.00 per yard$120Direct labor, 5 hours at $30 perhour150Factory overhead applied at 70%of direct labor105(variable costs = $70; fixedcosts = $35)Variable selling andadministrative74Fixed selling andadministrative50Total unit costs$499 Standards have been computed based on a master budget activitylevel of 29,800 direct labor-hours per month. Actual activity forthe past month was as follows: Materials used238,000yards at $3.15 peryardDirect labor28,100hours at $31.00 per hourTotal factory overhead$650,000Production5,500units Required:Prepare variance analyses for the variable and fixed costs.Materials are purchased as they are used.(Do not round intermediate calculations.Indicate the effect of each variance by selecting "F" forfavorable, or "U" for unfavorable. If there is no effect, do notselect either option.)Directmaterials:PricevarianceEfficiency varianceDirectlabor:PricevarianceEfficiency varianceVariableoverhead:Efficiency varianceFixedoverhead:Production volume variance


Direct materials, 40yards at $3.00 per yard	$	120
Direct labor, 5 hours at $30 perhour		150
Factory overhead applied at 70%of direct labor		105
(variable costs = $70; fixedcosts = $35)
Variable selling andadministrative		74
Fixed selling andadministrative		50
Total unit costs	$	499


Materials used		238,000	yards at $3.15 peryard
Direct labor		28,100	hours at $31.00 per hour
Total factory overhead	$	650,000
Production		5,500	units