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Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of...
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3]
Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,005 hours each month to produce 2,010 sets of covers. The standard costs associated with this level of production are:
| Total | Per Set of Covers |
||||
| Direct materials | $ | 28,542 | $ | 14.20 | |
| Direct labor | $ | 8,040 | 4.00 | ||
| Variable manufacturing overhead (based on direct labor-hours) | $ | 3,618 | 1.80 | ||
| $ | 20.00 | ||||
During August, the factory worked only 1,200 direct labor-hours and produced 2,600 sets of covers. The following actual costs were recorded during the month:
| Total | Per Set of Covers |
||||
| Direct materials (6,000 yards) | $ | 35,100 | $ | 13.50 | |
| Direct labor | $ | 10,920 | 4.20 | ||
| Variable manufacturing overhead | $ | 5,460 | 2.10 | ||
| $ | 19.80 | ||||
At standard, each set of covers should require 2.0 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 August.
2. Compute the labor rate and efficiency variances for August.
3. Compute the variable overhead rate and efficiency variances for August.
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of...
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2,
LO10-3]
Marvel Parts, Inc., manufactures auto accessories. One of the
company’s products is a set of seat covers that can be adjusted to
fit nearly any small car. The company has a standard cost system in
use for all of its products. According to the standards that have
been set for the seat covers, the factory should work 1,070 hours
each month to produce 2,140 sets of covers. The standard costs
associated with...
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of...
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2,
LO10-3]
Marvel Parts, Inc., manufactures auto accessories. One of the
company’s products is a set of seat covers that can be adjusted to
fit nearly any small car. The company has a standard cost system in
use for all of its products. According to the standards that have
been set for the seat covers, the factory should work 1,045 hours
each month to produce 2,090 sets of covers. The standard costs
associated with...
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of...
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2,
LO10-3]
Marvel Parts, Inc., manufactures auto accessories. One of the
company’s products is a set of seat covers that can be adjusted to
fit nearly any small car. The company has a standard cost system in
use for all of its products. According to the standards that have
been set for the seat covers, the factory should work 990 hours
each month to produce 1,980 sets of covers.
The standard costs associated with...
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of...
Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2,
LO10-3]
Marvel Parts, Inc., manufactures auto accessories. One of the
company’s products is a set of seat covers that can be adjusted to
fit nearly any small car. The company has a standard cost system in
use for all of its products. According to the standards that have
been set for the seat covers, the factory should work 1,010 hours
each month to produce 2,020 sets of covers. The standard costs
associated with...
Problem 8-24A Comprehensive Variance Analysis [LO8-4, LO8-5, LO8-6] Marvel Parts, Inc., manufactures auto accessories. One of...
Problem 8-24A Comprehensive Variance Analysis [LO8-4, LO8-5,
LO8-6]
Marvel Parts, Inc., manufactures auto accessories. One of the
company’s products is a set of seat covers that can be adjusted to
fit nearly any small car. The company has a standard cost system in
use for all of its products. According to the standards that have
been set for the seat covers, the factory should work 980 hours
each month to produce 1,960 sets of covers. The standard costs
associated with...
9. Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of...
9. Marvel Parts, Inc., manufactures auto accessories. One of the
company’s products is a set of seat covers that can be adjusted to
fit nearly any small car. The company has a standard cost system in
use for all of its products. According to the standards that have
been set for the seat covers, the factory should work 980 hours
each month to produce 1,960 sets of covers. The standard costs
associated with this level of production are: Total Per...
Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Miller Toy Company manufactures a plastic swimming pool...
Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2,
LO10-3]
Miller Toy Company manufactures a plastic swimming pool at its
Westwood Plant. The plant has been experiencing problems as shown
by its June contribution format income statement below:
Flexible Budget
Actual
Sales (4,000 pools)
$
210,000
$
210,000
Variable
expenses:
Variable cost of goods sold*
50,680
63,710
Variable selling
expenses
12,000
12,000
Total variable
expenses
62,680
75,710
Contribution margin
147,320
134,290
Fixed
expenses:
Manufacturing
overhead
61,000
61,000
Selling and administrative
76,000
76,000...
Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Miller Toy Company manufactures a plastic swimming pool...
Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2,
LO10-3]
Miller Toy Company manufactures a plastic swimming pool at its
Westwood Plant. The plant has been experiencing problems as shown
by its June contribution format income statement below:
Flexible Budget
Actual
Sales (6,000
pools)
$
240,000
$
240,000
Variable expenses:
Variable cost of goods sold*
57,900
74,210
Variable selling expenses
18,000
18,000
Total variable expenses
75,900
92,210
Contribution margin
164,100
147,790
Fixed expenses:
Manufacturing overhead
66,000
66,000
Selling and administrative
84,000
84,000...
Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Miller Toy Company manufactures a plastic swimming pool...
Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2,
LO10-3]
Miller Toy Company manufactures a plastic swimming pool at its
Westwood Plant. The plant has been experiencing problems as shown
by its June contribution format income statement below:
Flexible Budget
Actual
Sales (7,000 pools)
$
255,000
$
255,000
Variable expenses:
Variable cost of goods sold*
85,400
104,590
Variable selling expenses
15,000
15,000
Total variable expenses
100,400
119,590
Contribution margin
154,600
135,410
Fixed expenses:
Manufacturing overhead
64,000
64,000
Selling and administrative
79,000
79,000...
Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Miller Toy Company manufactures a plastic swimming pool...
Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2,
LO10-3]
Miller Toy Company manufactures a plastic swimming pool at its
Westwood Plant. The plant has been experiencing problems as shown
by its June contribution format income statement below:
Flexible Budget
Actual
Sales (3,000 pools)
$
179,000
$
179,000
Variable expenses:
Variable cost of goods sold*
33,390
44,540
Variable selling expenses
11,000
11,000
Total variable expenses
44,390
55,540
Contribution margin
134,610
123,460
Fixed expenses:
Manufacturing overhead
50,000
50,000
Selling and administrative
75,000
75,000...
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