ACCT 321 Homework – Week 4 | Complete Solution

Homework – Week 4
ACCT 321

1.    What is the formula used to calculate the Materials Price Variance?

2.    What is the formula used to calculate materials quantity variance (also called direct materials usage variance)?

3.    What is the formula used to calculate direct labor rate variance?

4.    What is the formula used to calculate direct labor efficiency variance (also called quantity or usage variance).

5.    What is the formula used to calculate factory overhead controllable variance?

6.    What is the formula used to calculate Factory overhead spending variance?

7.    What is the formula used to calculate variable overhead efficiency variance?

8.    MorningTime Bakery produces specialty coffee machines. MorningTime uses a standard cost system.  

Data regarding production during August are as follows:
            
Variable Manufacturing overhead costs incurred    $155,100        
Variable Manufacturing overhead cost rate    $12 per standard machine hour        
Fixed manufacturing overhead costs incurred    $401,000        
Fixed manufacturing overhead budgeted    $390,000        
Denominator level in machine-hours (Budget)     13,000        
 Standard machine-hour allowed per unit of output        .3        
Units of output    41,000        
Actual machine-hours used    13,300        
Ending Work-in-process inventory      0        
            
            
Using the 4-variance method calculate all (variable and fixed) manufacturing overhead variances. Indicate F for favorable, and U for unfavorable.

9.    Company ABC has estimated its sales budget at 500,000 units for the quarter ending December 30, 20X5.  ABC expects sales for October, November, December  are 37.5%, 25%, and 37.5%  of the total, respectively. The desired finished goods inventories are as follows:
October 1     90,000 units
October 31    87,500 units
November 30    93,000 units
December 31    95,000 units
Prepare a production budget for the first last quarter 20X5.