Premium Fender, which uses a standard cost system, manufactured 20,000 boat fenders during...
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Accounting
Premium Fender, which uses a standard cost system, manufactured boat fenders during using square feet of extruded vinyl purchased at $ per square foot. Production required direct labor hours that cost $ per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $ per square foot. The labor standard was direct labor hour per fender, at a standard cost of $ per hour.
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Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable or unfavorable Abbreviations used: actual cost; actual quantity; FOH fixed overhead; standard cost; standard quantity.
Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable or unfavorable Abbreviations used: actual cost; actual quantity; FOH fixed overhead; standard cost; standard quantity.
Formula
Variance
tableDirect materials efficiency variance,
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