(3) or https://ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external browser%-0&la... Saved ework Exercise 16-36 (Algo) Variable Cost Variances (LO 16-5) Paynesville Corporation manufactures and...


(3)<br>or<br>https://ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external browser%-0&la...<br>Saved<br>ework<br>Exercise 16-36 (Algo) Variable Cost Variances (LO 16-5)<br>Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no<br>inventories. The master budget calls for the company to manufacture and sell 132,000 liters at a budgeted price of $315 per liter this<br>year. The standard direct cost sheet for one liter of the preservative follows.<br>(2 pounds @ $20)<br>(0.5 hours @ $56)<br>Direct materials<br>Direct labor<br>28<br>Variable overhead is applied based on direct labor hours. The variable overhead rate is $180 per direct-labor hour. The fixed overhead<br>rate (at the master budget level of activity) is $90 per unit. All non-manufacturing costs are fixed and are budgeted at $2.8 million for<br>the coming year.<br>At the end of the year, the costs analyst reported that the sales activity variance for the year was $942,000 unfavorable.<br>The following is the actual income statement (in thousands of dollars) for the year.<br>Sales revenue<br>Less variable costs<br>Direct materials<br>Direct labor<br>Variable overhead<br>$40,038<br>4,218<br>3,410<br>10,730<br>$18,358<br>$21,680<br>Total variable costs<br>Contribution margin<br>Less fixed costs<br>Fixed manufacturing overhead<br>Non-manufacturing costs<br>Total fixed costs<br>1,210<br>06E<br>009<br>$19,080<br>Operating profit<br>During the year, the company purchased 208,000 pounds of material and employed 56,400 hours of direct labor.<br>Required:<br>a. Compute the direct material price and efficiency variances.<br>b. Compute the direct labor price and efficiency variances.<br>c. Compute the variable overhead price and efficiency variances.<br>(For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting
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Extracted text: (3) or https://ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external browser%-0&la... Saved ework Exercise 16-36 (Algo) Variable Cost Variances (LO 16-5) Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 132,000 liters at a budgeted price of $315 per liter this year. The standard direct cost sheet for one liter of the preservative follows. (2 pounds @ $20) (0.5 hours @ $56) Direct materials Direct labor 28 Variable overhead is applied based on direct labor hours. The variable overhead rate is $180 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $90 per unit. All non-manufacturing costs are fixed and are budgeted at $2.8 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $942,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. Sales revenue Less variable costs Direct materials Direct labor Variable overhead $40,038 4,218 3,410 10,730 $18,358 $21,680 Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs 1,210 06E 009 $19,080 Operating profit During the year, the company purchased 208,000 pounds of material and employed 56,400 hours of direct labor. Required: a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances. (For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) a. Direct materials: < prev="" 3="" of="" 7="" next=""> +66 回 こ F4 F7 F8 目目
nces<br>During the year, the company purchased 208,000 pounds of material and employed 56.400 hours of direct labor.<br>Required:<br>a. Compute the direct material price and efficiency variances.<br>b. Compute the direct labor price and efficiency variances.<br>c. Compute the variable overhead price and efficiency variances.<br>(For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting
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Extracted text: nces During the year, the company purchased 208,000 pounds of material and employed 56.400 hours of direct labor. Required: a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances. (For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) a. Direct materials: Price variance Efficiency variance F b. Direct labor: Price variance Efficiency variance F C. Variable overhead: Price variance Efficiency variance < prev="" 3="" of="" 7="" next=""> ******* ....*. A 99+
Jun 09, 2022
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