Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards:(Click the icon to view the standards.) (Click the icon to view the actual results.)Read the requirements.Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to thenearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL= Direct labor)Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor.DL rate variancex (x ()Requirements1. Compute the direct labor rate variance and the direct labor efficiency variance.2. What is the total variance for direct labor?3. Who is generally responsible for each variance?4. Interpret the variances.Print- XDone Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards:(Click the icon to view the standards.) (Click the icon to view the actual results.)Read the requirements.RequirenearestBegin wActual ResultsGrand Display allocated fixed manufacturing overhead to production based on standard direct laborhours. Last month, the company reported the following actual results for the production of 1,400flower pots:Direct materials..Direct labor....Actual variable manufacturingoverhead ......Actual fixed manufacturing overheadStandard fixed manufacturingoverhead allocated based on actualproduction......Purchased 13,700 pounds at a cost of $6.10 per pound;used 13,300 pounds to produce 1,400 potsWorked 2.4 hours per flower pot (3,360 total DLH) at acost of $10.00 per hour$5.70 per direct labor hour for total actual variablemanufacturing overhead of $19,152$25,500$28,000PrintDone- XStandard Price and Volume9 pounds per pot at a cost of $6.00 per. poundDirect materials (resin).Direct labor....Standard variable manufacturing overhead rate..... $5.00 per direct labor hourBudgeted fixed manufacturing overhead ... $26,000Standard fixed MOH rate.....….... $10.00 per direct labor hour (DLH)Print2.0 hours at a cost of $11.00 per hourDone-X

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Description: Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards:(Click the icon to view the standards.) (Click the icon to view the actual results.)Read the requirements.Requirement 1. Compute the direct labo

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Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the actual results.) (Click the icon to view the standards.) Read the requirements. Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL= Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. x( ) = DL rate variance Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances. Print Done - Х

Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the actual results.) (Click the icon to view the standards.) Read the requirements. Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL= Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. x( ) = DL rate variance Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances. Print Done - Х

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter24: Material And Labor Variances (primevar)

Section: Chapter Questions

Problem 4R: The worksheet you have developed will handle most simple variance analysis problems. Try the problem...

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Data table Last month, CenterWare reported the following actual results for the production of 70,000 bottles: Direct materials..... 1.5 kg per bottle, at a cost of $0.70 per kg Direct labour...... . 1/4 hour per bottle, at a cost of $13.20 per hour Actual variable overhead. ......... $104,600 Actual fixed overhead... $28,700 Done Data table The company has these standards: Direct materials (clay) 1.3 kg per bottle, at a cost of $0.40 per kg Direct labour... 1/5 hour per bottle, at a cost of $14.40 per hour Static budget variable overhead ......... $70,500 Static budget fixed overhead.... .... $30,500 Static budget direct labour hours......... 10,000 hours Static budget number of bottles.......... 52,000 CenterWare allocates manufacturing overhead to production based on standard direct labour hours. Print Done I Print
Complete the table below for the missing variances. 1(Click the icon to view the table.) Calculate the variances and identify whether the variance is favorable (F) or unfavorable (U). (b) Total Direct Materials Variance $125 F (c) Total Direct Labor Variance $255 F (e) Total Variable Overhead Variance $175 F (f) Total Fixed Overhead Variance (1) F (d) Total Manufacturing Overhead Variance (2) F (a) Total Flexible Budget Product Cost Variance (3) F 1: Data Table Total Flexible Budget Product Cost Variance (a) Total Direct Total Direct Total Manufacturing Materials Variance Labor Variance Overhead Variance (b) (c) (d) Direct Materials Direct Materials Direct Labor Direct Labor…
Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) variable overhead, $3,800; actual fixed overhead, $3, 500; actual direct labor hours, 1,400. Read the requirements. Data table Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standardco \table [[,, Formula,Variance], [VOH cost variance, = , 1 = , ], [VOH efficiency variance, =,1 =, 0
Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s performance report for April follows: REQUIRED: 1. Calculate the contribution margin variance and the contribution margin volume variance. 2. Calculate the market share variance and the market size variance. (CMA adapted)
Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.)
The president of McGrade Industries wants an analysis prepared to help explain why the variances computed in requirement 1 occurred. Using the worksheet called PRIMEVAR that follows these requirements, calculate the material and labor variances for McGrade Industries. The problem requires you to enter the input in the Data Section as well as formulas in the Answer Section.
The worksheet you have developed will handle most simple variance analysis problems. Try the problem below for Pscheidl, Inc.: Actual production for October was 11,500 units. Compute the direct materials and direct labor variances for Pscheidl, Inc. Be careful when entering your input because this problem presents the information in a different format from the McGrade Industries data. Save the file as PRIMEVAR4. Print the worksheet when done.
Acme Inc. has the following information available: A. Compute the material price and quantity, and the labor rate and efficiency variances. B. Describe the possible causes for this combination of favorable and unfavorable variances.
Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the material and $14 as the standard labor cost per hour. How has your explanation of the variances changed?
K Juda Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Juda allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: Data table X Sales Static Budget Actual Results (1,025 recliners) (1,005 recliners) (1,025 recliners x $515 each) (1,005 recliners x $480 each) $ 527 875 S 482 400 Variable Manufacturing Costs: Direct Materials (6,150 yds @ $8.90/ yd.) (6,300 yds @ $8.707 yd.) 54.735 54.810 Direct Labor (10,250 DLHr @ $11.30/DLHr) (9,850 DLHr @ $11.40/DLHr) 115 825 112 290 Variable Overhead (6,150 yds @ $5.107 yd.) 31,365 (6,300 yds. @$6.50/yd.) 40.950 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold 62,730 64,730 264,655 272,780 263,220 $ 209,620 Gross Profit
Tailored Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs). A (Click the icon to view additional information.) Read the requirements Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. Begin by computing the following amounts for the variable manufacturing overhead. Actual Input Qty. - X More info Actual Costs Allocated Incurred Budgeted Rate Flexible Budget Overhead Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct manufacturing labor-hours per suit. For June 2017, each suit is budgeted to take 3 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $11. The budgeted number of suits to be manufactured in June 2017 is 1,020. - X…
Pickul Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: (Click the icon to view the standards.) Requirement 1. Calculate the standard cost of one awning. Standard cost Direct materials Direct labor Variable MOH Fixed MOH Total standard cost Standard cost per unit Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variance as fa First determine the formula for the price variance, then compute the price variance for direct materials. Determine the formula for the quantity variance, then compute the quantity variance for direct materials. = DM price variance ) = First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. x( x( x ( x( = DM quantity…