Question

do others parts as well please so i submit it

Score: 0 of 1 pt 5 of 6 (4 complete) P23-27A (similar to) Headset manufactures headphones. During September 2016, the company produced and sold 106,000 cases and recorded the following cost data: (Click the icon to view the cost data) Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor 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 (F) or unfavorable (U). (Abbreviations actual quantity, FOH = fixed overhead: SC standard cost; SQ standard quantity) Data Table Direct materials costa Direct labor cost variance Standard Cost Information Requirements $ Direct Materials Direct Labor Variable Manufacturing Overhead Quantity 2 parts 0.02 hours 0.02 hours cost 0.17 per part 9.00 per hour 10.00 per hour 1. Compute the cost and c ances for directors and direct 2 For manufacturing overhead compute the variable overhead cost and iciency variances and the found overhead cost and volume variances Headset's management used better quality materials during September Discuss the Vade-off between the two direct material variances Fred Maracturing Overhead (529.400 for state budget volume of 98.000 units and 1.000 hours, or $15 per hour) 3. Print Done Actual Cost Information Direct Maria Direct Labor Variable Manufacturing Overhead Fred Mardachung Overhead 214.000 parts@ (1.000 hours $ s 0 22 per part) 9.15 per houn $47.080 4g

Answer 1

Part 1

		Formula		Variance
Direct materials cost variance	=	(AC- SC)×AQ	=	$10700	U
Direct labor cost variance	=	(AC- SC)×AQ	=	$249	U

Direct materials cost variance= (0.22-0.17*214000 = 10700

Direct labor cost variance = (9.15-9.00)*1660 = 249

		Formula		Variance
Direct materials efficiency variance	=	(AQ- SQ)×SC	=	$340	F
Direct labor efficiency variance	=	(AQ- SQ)×SC	=	$4500	F

Direct materials efficiency variance = (214000-(108000*2))*0.17 = -340

Direct labor efficiency variance = (1660-(108000*0.02))*9.00 = -4500

Part 2

		Formula		Variance
VOH cost variance	=	Actual VOH − (SC × AQ)	=	$4600	F
VOH efficiency variance	=	(AQ- SQ)×SC	=	$5000	F

VOH cost variance = 12000-(1660*10) = -4600

VOH efficiency variance = (1660-(108000*0.02))*10 = -5000

		Formula		Variance
FOH cost variance	=	Actual FOH − Budgeted FOH	=	$3400	F
FOH volume variance	=	Budgeted FOH − Allocated FOH	=	$3000	F

FOH cost variance = 26000-29400 = -3400

FOH volume variance = 29400-(108000*0.02*15) = -3000

Part 3

Headset’s management knew that using higher quality materials would result in a(n) unfavorable direct material price variance. They hoped these materials would result in more efficient usage than “standard” materials. The result was an overall unfavorable direct material flexible budget variance.