Question Details

[solution] » ?Wonderful! Not only did our salespeople do a good job in mee


Description

Answer Download


The Question


?Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well,? said Kim Clark, president of Martell Company. ?Our $18,300 overall manufacturing cost variance is only 1.2% of the $1,536,000 standard cost of products made during the year. That?s well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year.?

   

The company produces and sells a single product. The standard cost card for the product follows:


 

Standard Cost Card?per Unit
  Direct materials, 2 feet at $8.45 per foot $ 16.90  
  Direct labor, 1.4 direct labor-hours at $16 per direct labor-hour   22.40  
  Variable overhead, 1.4 direct labor-hours at $2.50 per direct labor-hour   3.50  
  Fixed overhead, 1.4 direct labor-hours at $6 per direct labor-hour   8.40  
 
  Standard cost per unit $ 51.20  
 

 

The following additional information is available for the year just completed:

 

a. The company manufactured 30,000 units of product during the year.
b.

A total of 64,000 feet of material was purchased during the year at a cost of $8.55 per foot. All of this material was used to manufacture the 30,000 units. There were no beginning or ending inventories for the year.

c.

The company worked 43,500 direct labor-hours during the year at a direct labor cost of $15.80 per hour.

d.

Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow:

 

     
  Denominator activity level (direct labor-hours)   35,000  
  Budgeted fixed overhead costs $ 210,000  
  Actual variable overhead costs incurred $ 108,000  
  Actual fixed overhead costs incurred $ 211,800  
3. For manufacturing overhead compute:

 

a.

The variable overhead rate and efficiency variances for the year. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)

   

          
 

b.

The fixed overhead budget and volume variances for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

 


Solution details

Solution #00020203

[solution] » ?Wonderful! Not only did our salespeople do a good job in mee.zip

Uploaded by: Tutor

Answer rating:

This paper was answered on 14-Oct-2020

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Oct 14, 2020

EXPERT

Tutor

ANSWER RATING

BEST TUTORS

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

STUCK WITH YOUR PAPER?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now