Christine Wilson_ACG 3341-1_Individual_Week 8

Christine Wilson_ACG 3341-1_Individual_Week 8 - ACG 3341-1...

Info icon This preview shows pages 1–3. Sign up to view the full content.

Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Exercise 7-22: Materials and manufacturing labor variances Consider the following data collected for Great Homes, Inc.: Direct Materials Direct Manufacturing Labor ncurred: Actual Inputs x Actual Prices $200,000 $90,000 Inputs x Standard Prices 214,000 86,000 rd Inputs Allowed for Actual Output x Standard Prices 225,000 80,000 Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor. Actual Costs Incurred (Actual Input Qty. × Actual Price) Actual Input Qty. × Budgeted Price Flexible Budget (Budgeted Input Qty. Allowed for Actual Output × Budgeted Price) Direct Materials $200,000 $214,000 $225,000 $14,000 F $11,000 F Price Variance Efficiency Variance $25,000 F Flexible-Budget Variance Direct $90,000 $86,000 $80,000 Mfg. Labor $4,000 U $6,000 U Price Variance Efficiency Variance $10,000 U Flexible-Budget Variance Exercise 7-23 : Direct materials and direct manufacturing labor variances Sally May Inc. designs and manufactures T-shirts. It sells its T-shirts to brand-name clothes retailers in lots of one dozen. Sally May’s May 2013 static budget and actual results for direct inputs are as follows: Static Budget Number of T-shirt lots (1 lot = 1 dozen) 400 Per Lot of T-shirts: Direct materials 14 meters at $1.70 per meter = $23.80 Direct manufacturing labor 1.6 hours at $8.10 per hour = $12.96 Actual Results Number of T-shirt lots sold 450
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern