Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on...
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Accounting
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September:
K4
X7
Standards
Direct materials
0.75
pounds at $6.00 per pound
1
pound at $6.60 per pound
Direct labor
1.25
hours at $24 per hour
1.5
hours at $30 per hour
Variable overhead (per direct labor-hour)
$ 19.20
$ 21.00
Fixed overhead (per month)
$ 402,408
$ 477,360
Expected activity (direct labor-hours)
17,250
23,400
Actual results
Direct material (purchased and used)
9,300
pounds at $5.40 per pound
14,100
pounds at $6.90 per pound
Direct labor
14,700
hours at $24.30 per hour
22,200
hours at $30.60 per hour
Variable overhead
$ 291,060
$ 454,212
Fixed overhead
$ 376,740
$ 475,200
Units produced (actual)
12,000
units
14,400
units
Required:
a. Prepare a variance analysis for each variable cost for each product.
b. Prepare a fixed overhead variance analysis for each product.
Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
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