Question

Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month...

Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Actual Costs 405 units Spending Variance Flexible Budget 405 units Volume Variance Master Budget 200 units
Direct Material $17,300 $15,800
Direct Labor 28,000 23,800
Variable Overhead 10,050 9,800
Fixed Overhead 13,300 11,900
Total Manufacturing Costs $68,650 $61,300

Homework Answers

Answer #1
Actual Costs 405 units Spending Variance Flexible Budget 405 units Volume Variance Master Budget 200 units
Direct Material 17300 14695 F 31995 16195 U 15800
Direct Labor 28000 20195 F 48195 24395 U 23800
Variable Overhead 10050 9795 F 19845 10045 U 9800
Fixed Overhead 13300 1400 U 11900 0 None 11900
Total Manufacturing Costs 68650 43285 F 111935 50635 U 61300
Workings:
Flexible Budget 405 units
Direct Material 31995 =15800/200*405
Direct Labor 48195 =23800/200*405
Variable Overhead 19845 =9800/200*405
11900
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