EXAM 4 FINALCHB 9 10 Google Password Required Enter your pas

EXAM 4 (FINAL)-CHB, 9. 10 Google Password Required Enter your passwond for \"igalind in Internet Accounta htrn C Search t Appe 8 Disney ESPN EXAM 4 (FINAL)-CH 8, 9, 10 Help Save &Exit; Submit Marvel Parts, Inc., manufactures auto accessories. One of the company\'s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 980 hours each month to produce 1,960 sets of covers. The standard costs associated with this level of production are: Per Set Total of Cove 02:49.34 Direct material Direct labor Variable manufacturing overhead (based 32,340$16.50 6,860 3.50 s 1,9601.00 $21.00 on direct labor-hours) During August, the factory worked only 1,000 direct labor-hours and produced 2100 sets of covers. The following actual costs were recorded during the month: Per Set Total of Covers Direct materials (6,000 yardn) Direct labor 34,020 $16.20 $ 7,7703-70 3,9901.90 $21.80 Variable manufacturing overhead At standard, each set of covers should require 2.5 yards of material. All of the materials purchased production Ne xt

Solution

1(a) Material Price Variance = (StandardPrice - Atual Price)Actual Quantity = (6.60-5.67)*6000 yards 5580 F *$16.50 ÷ 2.50 yards = $6.60 per yard **$34020 ÷ 6000 yards = $5.70 per yard 1(b) Material Quantity Variance = (SQ-AQ)*SP = (5250 yards-6000yards)6.60 4950 U ***2,100 sets × 2.50 yards per set = 5,250 yards 2(a) Labour Rate Variance = (Standard Rate-Actual Rate)*Actual Hrs = ($7 - $7.77)*1000 hrs 770 U 980 standard hours ÷ 1,960 sets = 0.5 standard hour per set, $3.50 standard cost per set ÷ 0.5 standard hours per set = $7 standard rate per hour Aactual Rate = *$7,770 ÷ 1,000 hours = $7.77 per hour 2(b) Labour Efficiency Variance = (SHrs - Actual Hrs)*Standard Rate = (1050 hrs-1000 hrs)*$7 350 F Standard Hrs = 2,100 sets × 0.5 standard hours per set = 1,050 standard hours. 3(a) Variable Overhead Rate Variance = Standard Rate - Actual Rate)*Actual Hrs ($ 2 - $3.99)1000 hrs 1990 U *Actual Rate = $3,990 ÷ 1,000 hours = $3.99 per hour 3(b) Variable Overhead efficiency Variance = (Standard Hrs-Actual Hrs)*Standard Rate ;= (1050 hrs-1000 hrs)*$2 100 F