Question

In: Accounting

Hawley Inc. manufactures designer iPod cases for national distribution. The standard costs for the manufacture of...

Hawley Inc. manufactures designer iPod cases for national distribution. The standard costs for the manufacture of designer iPod cases were as follows:

Standard Costs Actual Costs

Direct materials 1,500 lbs. at $35 1,600 lbs. at $32

Direct labor 4,800 hrs. at $11 4,500 hrs. at $11.80

Factory overhead Rates per labor hour, based on 100% of normal capacity of 5,500 labor hrs.:

Variable cost, $2.40 $12,300 variable cost

Fixed cost, $3.50 $19,250 fixed cost

Instructions

1. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance for the designer iPod cases.

2. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance for the designer iPod cases.

3. Determine the variable factory overhead controllable variance, fixed factory overhead volume

variance, and total factory overhead cost variance for the designer iPod cases.

Solutions

Expert Solution

Please find below answer of your question. If this helped, please hit LIKE button. If need any explanation, put it in comment.

Standard Quantity (SQ) Standard Price (SP) Standard Unit Cost
Direct Material 1500 35 52500
Direct Labor 4800 11 52800
Actual Quantity Actual Rate (AP) Given Actual Cost
Direct Material 1600 1600 32 51200
Direct Labor 4500 4500 11.8 53100
Direct Material Price Variance (SP-AP)*AQ (35-32)*1600 4800 Favorable
Direct Material Quantity Variance (SQ-AQ)*SP (1500-1600)*35 -3500 Unfavorable
Total Material Variance Price Var+Quantity Var 1300 Favorable
Direct Labor Rate Variance (SP-AP)*AQ (11-11.8)*4500 -3600 Unfavorable
Direct Labor Efficiency Variance (SQ-AQ)*SP (4800-4500)*11 3300 Favorable
Total Labor Variance Price Var+Quantity Var -300 Unfavorable
Controllable Variable Ovrhead Variance: 11520-12300= 780 U
Fixed Overhead Volume Variance: (5500-4800)*3.5=2450 U
Total Overhead Variance: 780+2450=3230 U

Related Solutions

Hawley Inc. manufactures designer iPod cases for national distribution. The standard costs for the manufacture of...
Hawley Inc. manufactures designer iPod cases for national distribution. The standard costs for the manufacture of designer iPod cases were as follows:     Standard Costs Actual Costs Direct materials 1,500 lbs. at $35 1,600 lbs. at $32 Direct labor 4,800 hrs. at $11 4,500 hrs. at $11.80 Factory overhead Rates per labor hour, based on 100% of the normal capacity of 5,500 labor hrs.: Variable cost, $2.40 $12,300 variable cost Fixed cost, $3.50 $19,250 fixed cost Instructions 1. Determine the...
The Johnson Company manufactures designer blankets for international distribution. The standard costs for the manufacturer of...
The Johnson Company manufactures designer blankets for international distribution. The standard costs for the manufacturer of these high-quality blankets are:                                                 Standard Costs                                   Actual Costs Direct Materials                      4,000 pounds at $42                           4,300 pounds at $40 Direct Labor                            5,200 hours at $15                              5,500 hours at $14 Instructions: Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance for the designer blankets. Determine the (a) direct labor rate variance, (b) direct labor time...
Redlands, Inc. reported standard and actual costs for the product that it manufactures: Item Standard Actual...
Redlands, Inc. reported standard and actual costs for the product that it manufactures: Item Standard Actual Direct materials quantity 2 lbs. 4 lbs. Direct material price $3 per lb. $2 per lb. Direct labor quantity 3 hours 2 hours Direct labor price $5 $7 Factory overhead $1 per machine hour $2 per machine hour Total machine hours 10 machine hours 18 machine hours Number of finished products made 10 12 Number of finished products sold 10 11 Sales price per...
The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of...
The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.74 per hour Variable overhead 3 hours per unit at $2.06 per hour Actual Costs Total variable cost, $17,900 Total fixed cost, $7,800 The total factory overhead cost variance is a.$1,780 favorable b.$2,964 favorable c.$596 unfavorable d.$1,780 unfavorable
The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of...
The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours)3 hours per unit at $0.74 per hour Variable overhead3 hours per unit at $1.93 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,200 The variable factory overhead controllable variance is a.$2,820 favorable b.$3,525 favorable c.$3,525 unfavorable d.$0
Q1: The standard costs and actual costs for factory overhead for the manufacture of 2,700 units...
Q1: The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.73 per hour Variable overhead 3 hours per unit @ $2.03 per hour Actual Costs     Total variable cost, $18,000     Total fixed cost, $8,100 The amount of the fixed factory overhead volume variance is $1,110 unfavorable $1,387 unfavorable $1,110 favorable $0 Q2: The standard costs and...
The standard costs and actual costs for direct materials for the manufacture of 2,700 actual units...
The standard costs and actual costs for direct materials for the manufacture of 2,700 actual units of product are Standard Costs Direct materials (per completed unit) 1,040 kilograms @$8.64 Actual Costs Direct materials 2,700 kilograms @ $8.20 Round your final answer to the nearest dollar. The amount of direct materials price variance is a.$458 favorable b.$458 unfavorable c.$1,188 unfavorable d.$1,188 favorable
Flow of Costs and Income Statement Technology Accessories Inc. is a designer, manufacturer, and distributor of...
Flow of Costs and Income Statement Technology Accessories Inc. is a designer, manufacturer, and distributor of accessories for consumer electronic products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the iLeather. The cover is made of stitched leather with a velvet interior and fits snugly around most tablet computers. In January, $762,000 was spent on developing marketing and advertising materials. For the first six months of 20Y3, the company spent an additional $1,405,000...
Flow of Costs and Income Statement Ginocera Inc. is a designer, manufacturer, and distributor of custom...
Flow of Costs and Income Statement Ginocera Inc. is a designer, manufacturer, and distributor of custom gourment kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early 20Y8. In January, the company spent $600,000 to develop a late-night advertising infomercial for the new product. During 20Y8, the company spent an additional $1,400,000 promoting the product through these infomercials, and $800,000 in legal costs. The knives were ready for manufacture on January 1, 20Y8....
Flow of Costs and Income Statement Technology Accessories Inc. is a designer, manufacturer, and distributor of...
Flow of Costs and Income Statement Technology Accessories Inc. is a designer, manufacturer, and distributor of accessories for consumer electronic products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the iLeather. The cover is made of stitched leather with a velvet interior and fits snugly around most tablet computers. In January, $780,000 was spent on developing marketing and advertising materials. For the first six months of 20Y3, the company spent an additional $1,406,000...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT