Bullseye Company manufactures dartboards. Its standard cost information follows
ID: 2436371 • Letter: B
Question
Bullseye Company manufactures dartboards. Its standard cost information follows Standard Quantity Standard Price (Rate) Unit Cost Standard Direct materials (cork board) Direct labor Variable manufacturing overhead (based on $ 2.70 per sq. ft. $14.00 per hr 2.00 sq. ft. S 5.40 14.00 0.35 0.30 1 hrs. rs $ 0.35 per hr direct labor hours) Fixed manufacturing overhead ($85,500 285,000 units) Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard used Cost of corkboard used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 265,000 540,000 $1,404,000 273,000 $3,576,300 $ 94,000 $ 68,000 Requirec 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance 2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.(Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Labor Rate Variance Direct Labor Efficiency Variance Direct Labor Spending VarianceExplanation / Answer
Answers
Actual DATA for
265000
units
Quantity (AQ)
Rate (AR)
Actual Cost
Direct Material
540000
$ 2.600
$ 1,404,000.00
Direct labor
273000
$ 13.10
$ 3,576,300.00
Variable Overhead
273000
$ 0.34
$ 94,000.00
Standard DATA for
265000
units
Quantity (SQ)
Rate (SR)
Standard Cost
Direct Material
530000
$ 2.70
$ 1,431,000.00
Direct labor
265000
$ 14.00
$ 3,710,000.00
Variable Overhead
265000
$ 0.35
$ 92,750.00
Material Price Variance
(
Standard Rate
-
Actual Rate
)
x
Actual Quantity
(
$ 2.70
-
$ 2.60
)
x
540000
54000
Variance
$ 54,000.00
Favourable-F
Material Quantity Variance
(
Standard Quantity
-
Actual Quantity
)
x
Standard Rate
(
530000
-
540000
)
x
$ 2.70
-27000
Variance
$ 27,000.00
Unfavourable-U
Material Spending Variance
(
Standard Cost
-
Actual Cost
)
(
$ 1,431,000.00
-
$ 1,404,000.00
)
27000
Variance
$ 27,000.00
Favourable-F
Labor Rate Variance
(
Standard Rate
-
Actual Rate
)
x
Actual Labor Hours
(
$ 14.00
-
$ 13.10
)
x
273000
245700
Variance
$ 245,700.00
Favourable-F
Labour Efficiency Variance
(
Standard Hours
-
Actual Hours
)
x
Standard Rate
(
265000
-
273000
)
x
$ 14.00
-112000
Variance
$ 112,000.00
Unfavourable-U
Labor Spending Variance
(
Standard Cost
-
Actual Cost
)
(
$ 3,710,000.00
-
$ 3,576,300.00
)
133700
Variance
$ 133,700.00
Favourable-F
Actual DATA for
265000
units
Quantity (AQ)
Rate (AR)
Actual Cost
Direct Material
540000
$ 2.600
$ 1,404,000.00
Direct labor
273000
$ 13.10
$ 3,576,300.00
Variable Overhead
273000
$ 0.34
$ 94,000.00
Standard DATA for
265000
units
Quantity (SQ)
Rate (SR)
Standard Cost
Direct Material
530000
$ 2.70
$ 1,431,000.00
Direct labor
265000
$ 14.00
$ 3,710,000.00
Variable Overhead
265000
$ 0.35
$ 92,750.00
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