Reference no: EM13488664
Variances for direct materials and direct labor
Banner Company manufactures flags of various countries. Each flag has a standard of eight square feet of fabric and three hours of direct labor time. Information about recent production activity follows.
Actual cost of fabric: $4.50 per square foot
Fabric consumed: 32,080 square feet
Standard price per square foot of fabric: $4.25
Standard direct labor rate: $10.00 per hour
Actual direct labor rate: $10.20 per hour
Actual labor hours worked: 11,940
Actual production completed: 4,000 flags
a. Compute the materials price variance and the materials quantity variance.
b. Compute the labor rate variance and the labor efficiency variance.
Overhead variances
Nova Manufacturing applies factory overhead to products on the basis of direct labor hours. At the beginning of the current year, the company's accountant made the following estimates for the forthcoming period:
- Estimated variable overhead: $500,000
- Estimated fixed overhead: $400,000
- Estimated direct labor hours: 40,000
It is now 12 months later. Actual total overhead incurred in the manufacture of 7,900 units amounted to $895,100. Actual labor hours totaled 39,800. Assuming a direct labor standard of five hours per finished unit, calculate the following:
a. Variable overhead efficiency variance
b. Fixed overhead volume variance
c. Overhead spending variance
|
What wavelength is detected by a person on the platform
: A commuter train passes a passenger platform at a constant speed of 42.9 m/s. The train horn is sounded at its characteristic frequency of 320 Hz. What wavelength is detected by a person on the platform as the train approaches
|
|
Find the intensity level in decibels at that distance
: An outside loudspeaker (considered a small source) emits sound waves with a power output of 80 W. Find the intensity level in decibels at that distance
|
|
Compute arrows direct labor variances
: Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year.
|
|
Explain the benefit of using flexible budgets
: The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500, respectively.
|
|
Compute the materials price variance
: Banner Company manufactures flags of various countries. Each flag has a standard of eight square feet of fabric and three hours of direct labor time. Information about recent production activity follows.
|
|
Prepare a forecasted balance sheet for the months
: Prepare a budgeted income statement, under absorption costing for Mile-High for the months of April, May and June assuming that Mile High opts to use the variable delivery service.
|
|
Find direction of the final velocity of the composite object
: An object with a mass of 3.00 kg, moving with an initial velocity of 5.00i m/s, find the direction of the final velocity of the composite object
|
|
Define comprehensive budgeting
: Watson uses four units of direct material in each finished unit. The direct material price has been stable and is expected to remain so over the next six months. Management wants to maintain the ending direct materials inventory at 60% of the f..
|
|
Find the average power generated by the horn
: A train sounds its horn as it approaches an intersection. The horn can just be heard at a level of 56 dB by an observer 10 km away. What is the average power generated by the horn
|