Question

The budget for the month of May was for 13,200 units at a direct materials cost...

The budget for the month of May was for 13,200 units at a direct materials cost of $24 per unit. Direct labor was budgeted at 33 minutes per unit for a total of $118,800. Actual output for the month was 9,400 units with $150,000 in direct materials and $86,775 in direct labor expense. The direct labor standard of 33 minutes was obtained throughout the month. Variance analysis of the performance for the month of May would show a(n): (CMA adapted)

Homework Answers

Answer #1
  • It is given that direct labor standard of  33 minutes was obtained throughout the month
  • . So Labor Efficiency Variance is Nil.
  • Actual Price paid for each unit of direct material

​​​​​​​ = $150,000 / 9,400

= $15.95

  • Materail Price Variance

= (Standard Price - Actual Price) x Actual Units

= (24 - 15.95) x 9,400

= $75670

  • Material Usage Variance

=  (Standard Units - Actual Units) x Standard Price

   = (13,200 - 9,400) x 24

= $91,200

  • Labor Rate Variance

= Labor Cost Variance - Labor Efficiency Variance

= (1,18,800 - 86,775) - 0

= $32,025

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The budget for the month of May was for 11,600 units at a direct materials cost...
The budget for the month of May was for 11,600 units at a direct materials cost of $20 per unit. Direct labor was budgeted at 29 minutes per unit for a total of $104,400. Actual output for the month was 9,000 units with $140,000 in direct materials and $82,775 in direct labor expense. The direct labor standard of 29 minutes was obtained throughout the month. Variance analysis of the performance for the month of May would show a(n): (CMA adapted)
The static budget for the month of May was for 12,500 units with direct materials at...
The static budget for the month of May was for 12,500 units with direct materials at $22 per unit. Direct labor was budgeted at 35 minutes per unit for a total of $87,000. Actual output for the month was 12,000 units with $264,000 in direct materials and $87,000 in direct labor expense. The direct labor standard of 35 minutes was maintained throughout the month.                                                                 Determine whether a favorable or unfavorable variance occurred and what caused it.                                                                      Favorable/Unfavorable. Answer:                                              Amount....
RAMOS CO. Direct Materials Budget For April, May, and June April May June Budget production (units)...
RAMOS CO. Direct Materials Budget For April, May, and June April May June Budget production (units) 600 730 700 units Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases Required information Ramos Co. provides the following sales forecast and production budget for the next four months. April May June July Sales (units) 660 740 690 760 Budgeted production (units) 600 730 700 700 The company...
Standards (for a planned level of production of 2,200 units per month) Direct Materials: Yards per...
Standards (for a planned level of production of 2,200 units per month) Direct Materials: Yards per costume12.50yards,, Price per yard $26.00average Direct Labor: D.L. Hours per costume 62.00hours,, D.L. Rate per hour $44.50average Variable MOH standard rate per direct labor hour $4.35per D.L. hour,,Fixed MOH standard rate per direct labor hour $9.47per D.L. hour,,Total Budgeted Fixed MOH (for 1 month) $ 1,250,000 Actual cost and data from the current month: Actual number of yards of materials purchased 28,500 Actual cost...
ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units)...
ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 694 735 727 units Materials requirements per unit 4 4 4 lbs. Materials needed for production (lbs.) 2,776 2,940 2,908 lbs. Budgeted ending inventory (lbs.) 882 872 872 lbs. Total materials requirements (lbs.) 3,658 3,812 3,780 lbs. Beginning inventory (lbs.) 833 882 872 lbs. Materials to be purchased (lbs.) 2,825 2,930 2,908 lbs. Cost per lb. $4 $4 $4 per lb. Total budgeted direct...
Q7. Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget...
Q7. Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 9,100 direct labor-hours will be required in May. The variable overhead rate is $2.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be? Q8. The following data pertains to...
The Brown Manufacturing​ Company's costing system has two​ direct-cost categories: direct materials and direct manufacturing labor....
The Brown Manufacturing​ Company's costing system has two​ direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead​ (both variable and​ fixed) is allocated to products on the basis of standard direct manufacturing labor hours​ (DLH). At the beginning of 2014 Brown adopted the following standards for its manufacturing​ costs:  Direct materials 3 lbs. at $4 per lb. $12.00 Direct manufacturing labor 4 hrs. at $20 per hr. 80.00 Manufacturing overhead: Variable $6 per DLH 24.00 Fixed $7 per DLH...
The Brown Manufacturing​ Company's costing system has two​ direct-cost categories: direct materials and direct manufacturing labor....
The Brown Manufacturing​ Company's costing system has two​ direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead​ (both variable and​ fixed) is allocated to products on the basis of standard direct manufacturing labor hours​ (DLH). At the beginning of 2014 Brown adopted the following standards for its manufacturing​ costs:  Direct materials 3 lbs. at $4 per lb. $12.00 Direct manufacturing labor 4 hrs. at $20 per hr. 80.00 Manufacturing overhead: Variable $6 per DLH 24.00 Fixed $7 per DLH...
Prepare the sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, SGA...
Prepare the sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, SGA budget, and budgeted income statement for ABC Company for the year, given the following information: ABC expects to sell 10,000 units for the year at $175 per unit. ABC Company begins the year with 2,000 units and desires ending inventory of 7,000 units. To produce 1 unit, it takes the following: DIRECT MATERIALS: To produce 1 unit: 10 pounds Waste per unit: 1 pound...
Oyster Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor...
Oyster Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $214 per board. This includes 35 pounds of direct​ materials, at the budgeted price of $2 per​ pound, and 10 hours of direct manufacturing​ labor, at the budgeted rate of $14.40 per hour. Following are additional data for the month of​ July: Units completed 5,500 units Direct material purchases 230,000 pounds Cost of direct material purchases $782,000 Actual direct manufacturing labor-hours 48,000 hours...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT