D. Standard Costing and Variance Analysis 26. Wings, Inc. makes wings and has th

Question

D. Standard Costing and Variance Analysis 26. Wings, Inc. makes wings and has the following standard cost sheet: DM: DL: VMOH: 100 kg @ $7.00 per kg 30 DLH@ $100.00 per DLH 20 MHr@ $50.00 per MHr Wings expected to produce 350 wings, but only produced 320. Wings purchased 35,000 kg of materials for $250,000, but only used 31,500 kg in production. Production used 9,500 DLH, costing Wings a total of $970,000. 6,500 MHr were used and total actual variable manufacturing overhead was $350,000. Calculate the following variances: a DMPV: b. DMUV: (4pts) (4pts)

Explanation / Answer

a) DMPV = (Standard price-actual price)actual quantity

(7*35000-250000) = 5000 U

b) DMUV = (Standard quantity-actual quantity)Standard price

(320*100-31500)*7 = 3500 F

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