Helix Company produces several products in its factory, including a karate robe. The company uses...
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Accounting
Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 1,045 direct labor-hours each month and produce 2,090 robes. The standard costs associated with this level of production are as follows:
Total
Per Unit of Product
Direct materials
$
49,533
$ 23.70
Direct labor
$
10,450
5.00
Variable manufacturing overhead (based on direct labor-hours)
$
4,598
2.20
$ 30.90
During April, the factory worked only 900 direct labor-hours and produced 1,900 robes. The following actual costs were recorded during the month:
Total
Per Unit of Product
Direct materials (6,400 yards)
$
44,460
$ 23.40
Direct labor
$
9,880
5.20
Variable manufacturing overhead
$
4,370
2.30
$ 30.90
At standard, each robe should require 3.00 yards of material. All of the materials purchased during the month were used in production.
Required:
1.
Compute the materials price and quantity variances for April: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)
2.
Compute the labor rate and efficiency variances for April: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)
3.
Compute the variable manufacturing overhead rate and efficiency variances for April: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)
