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i Standard Price and Volume Actual Results - X wn ase the Standards: Direct materials 19.0 yards per awning at $13.00 per yard Direct labor 3.0 hours per awning at $17.00 per hour Variable MOH standard rate $5.00 per direct labor hour Predetermined fred MOH standard rate $8.00 per direct labor hour Total budgeted fixed MOH cost $39,300 Purchased 34,510 yards at a total cost of $431,375 Used 31,300 yards in producing 1.700 awnings Actual direct labor cost of $85,808 for a total of 4,960 hours Actual variable MOH $25.296 > Actual fixed MOH 344,300 ment cost ateria Print Done Print Done MOH DH Peterson Awning manufactures awnings and uses a standard cost system. The company overhead based on the number of direct labor hours. The following are the company's cos data: B: (Click the icon to view the standards.) Requirement 1. Calculate the standard cost of one awning. Standard cost per unit 247 Standard cost Direct materials Direct labor Variable MOH 51 Fixed MOH Total standard cost 337 Requirement 2a. Calculate the direct material variances. (Enter the variances as positive nu favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials.) Choose from any list or enter any number in the input fields and then continue to the ne Requirement 2a. Calculate the direct material variances (Enter the variances as positive numbers. Enter currency amounts to the nearest centa favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials.) First determine the formula for the price variance, then compute the price variance for direct materials. Actual quantity purchased Standard price Actual price ) = DM price variance 34510 x 13 12.5 ) - 17255F Determine the formula for the quantity variance, then compute the quantity variance for direct materials Standard price x( Standard quantity allowed Actual quantity used 13 x 32300 DES34510 ) = ) = DM quantity variance 287300 Darremanth Pallate the Himnet labarrianne Enter the winnes ne mbare Enter naman ta thn nanetrant and M y USU U di usi cum avorable (F) or unfavorable (U). Abbreviations used: DL - Direct labor.) "irst determine the formula for the rate variance, then compute the rate variance for direct labor. Actual hours x Standard rate Actual rate ) - 4960 x 17 17.3 ) - First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. Standard rate x Standard hours allowed - Actual hours ) x 5100 4960 ) = DL rate variance 14880 DL efficiency variance 2380F Requirement 2c. Calculate the variable manufacturing overhead variances. (Enter the variances as positive numbers. Enter currency amounts to Tabel the variance ac faunrahlo (Flor unfavorable ) Choose from any list or enter any number in the input fields and then continue to the next question. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. (Round interim calculations to the Actual rate Actual hours 4960 x x Standard rate 5 ) = ) - Variable overhead rate variance 496U 5.1 Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency X ( - Standard rate 5 Actual hours 4960 Standard hours allowed Standard hours allowed 5100 ) ) - ) = Variable overhead efficiency variance 700F Choose from any list or enter any number in the input fields and then continue to the next question. MIS Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the budget variance for food manufacturing Fixed MOH Actual food overhead Budgeted fixed overhead budget variance 5000 U 39300 Now compute the fixed manufacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume variance for fixed manufacturing overhea Fored MOH Budgeted fixed overhead . Sid, fixed overhead cost allocated to production = volume variance 38300 1500 F Requirement 3. Explain what each of the variances you calculated means and give at least one possible explanation for each of those variances Choose from any list or enter any number in the input fields and then continue to the next question. Direct materials: Possible explanation Variance Meaning DM price DM quantity Direct Labor: Meaning Possible explanation Variance DL rate DM efficiency Choose from any list or enter any number in the input fields and then continue to the next question. Variable manufacturing overhead: Variance Meaning VOH rate Possible explanation VOH efficiency Read the requirements Fixed manufacturing overhead: Variance Meaning FOH budget Possible explanation FOH volume Are any of the variances likely to be interrelated? The variance is likely to be related to the variance. It is likely that Peterson Awning This may have resulted Cinse from any list or enter any number in the input fields and then continue to the next

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