The Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing l
Posted: Mon May 30, 2022 6:50 am
The Manufacturing Company's costing system has two direct-cost
categories: direct materials and direct manufacturing labor.
Manufacturing overhead (both variable and fixed) is allocated to
products on the basis of standard direct manufacturing labor-hours
(DLH). At the beginning of , adopted the following standards for
its manufacturing costs:
2.
2017,
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
Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Standard manufacturing cost per output unit Cost per Output Unit 14.00 60.00 24.00 40.00 138.00 Input 2 lb. at $7 per lb. $ 4 hrs. at $15 per hr. $6 per DLH $10 per DLH $
The denominator level for total manufacturing overhead per month in 2017 is 42,000 direct manufacturing labor-hours. Brown's budget for January 2017 was based on this denominator level. The records for January indicated the following: Direct materials purchased 18,400 lb. at $6.75 per lb. Direct materials used 15,900 lb. Direct manufacturing labor 30,800 hrs. at $15.40 per hr. Total actual manufacturing overhead (variable and fixed) $650,000 Actual production 8,200 output units
Requirement 1. Prepare a schedule of total standard manufacturing costs for the 8,200 output units in January 2017. Direct materials $ 114,800 Direct manufacturing labor 492,000 Variable manufacturing overhead 196,800 328,000 Fixed manufacturing overhead 1,131,600 Total Requirement 2. For the month of January 2017, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials. Actual Input Quantity x Budgeted Price Flexible Actual Costs Incurred Purchases Usage Budget Direct materials $ 124,200 $ 128,800 $ 111,300 114,800 $
categories: direct materials and direct manufacturing labor.
Manufacturing overhead (both variable and fixed) is allocated to
products on the basis of standard direct manufacturing labor-hours
(DLH). At the beginning of , adopted the following standards for
its manufacturing costs:
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2017,
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
Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Standard manufacturing cost per output unit Cost per Output Unit 14.00 60.00 24.00 40.00 138.00 Input 2 lb. at $7 per lb. $ 4 hrs. at $15 per hr. $6 per DLH $10 per DLH $
The denominator level for total manufacturing overhead per month in 2017 is 42,000 direct manufacturing labor-hours. Brown's budget for January 2017 was based on this denominator level. The records for January indicated the following: Direct materials purchased 18,400 lb. at $6.75 per lb. Direct materials used 15,900 lb. Direct manufacturing labor 30,800 hrs. at $15.40 per hr. Total actual manufacturing overhead (variable and fixed) $650,000 Actual production 8,200 output units
Requirement 1. Prepare a schedule of total standard manufacturing costs for the 8,200 output units in January 2017. Direct materials $ 114,800 Direct manufacturing labor 492,000 Variable manufacturing overhead 196,800 328,000 Fixed manufacturing overhead 1,131,600 Total Requirement 2. For the month of January 2017, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials. Actual Input Quantity x Budgeted Price Flexible Actual Costs Incurred Purchases Usage Budget Direct materials $ 124,200 $ 128,800 $ 111,300 114,800 $