Assignment
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Inputs
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- Standard Quantity or Hours
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- Standard Price or Rate
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- Standard Cost
- X (2)
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Direct Materials
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5 pounds
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$8.00 per pound
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$40.00
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Direct Labor
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2 hours
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$14.00 per hour
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$28.00
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Variable Overhead
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2 hours
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$5.00 per hour
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$10.00
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Total Standard Cost Per Unit
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|
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$78.00
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Ribbons Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost per unit is provided above.
The planning budget for August was based on producing and selling 25,000 units. However, during August Ribbons actually produced and sold 30,000 units and incurred the following costs:
a) Direct laborers worked 55,000 hours at a rate of $15.00 per hour.
b) Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound and all of this material was used in production.
c) Total variable manufacturing overhead for August was $280,500.
Answer the following 14 questions:
A. What raw materials cost would be included in the company's flexible budget for August?
B. What raw materials cost would be included in the company's planning budget for August?
C. What is the materials quantity variance for August?
D. What is the materials price variance for August?
E. If Ribbons had purchased 170,000 pounds of material at $7.50 per pound and used 160,000 pounds in production, what would be the materials price variance for August?
F. If Ribbons had purchased 170,000 pounds of material at $7.50 per pound and used 160,000 pounds in production, what would be the materials quantity variance for August?
G. What direct labor cost would be included in the company's flexible budget for August?
H. What direct labor cost would be included in the company's planning budget for August?
I. What is the labor rate variance for August?
J. What is the labor efficiency variance for August?
K. What is the labor spending variance for August?
L. What variable manufacturing overhead cost would be included in the company's planning budget for August?
M. What variable manufacturing overhead cost would be included in the company's flexible budget for August?
N. What is the variable overhead rate variance for August?