Question

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as sha. Purchased 28,400 pounds of materials at a cost of $2.75 per pound. b. Used 23,200 pounds of materials in production. (FiniRequired 1 Required 2 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the fRequired 1 Required 2 Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavora

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Direct Material Price Variance = (Standard price – Actual Price)*Actual Quantity

= (2.30 – 2.75)*28,400

= 12,780 Unfavorable

Direct Material Quantity Variance = (Standard Quantity – Actual Quantity)*Standard Price

= (6,000*3.9 – 23,200)*2.30

= $460 favorable

Direct labour rate variance = (Standard rate – actual rate)*actual hours

= (6.90-6.60)*5,400

= $1620 favorable

Direct Labor Efficiency Variance = (Standard Hours – Actual Hours)*Standard rate

= (6000*0.8 – 5400)*6.90

= $4,140 Unfavorable

Variable overhead rate = (2.40-Actual)*3900

= 2.40*3900 – 10,920

= $1560 Unfavorable

Efficiency = (6000*0.6-3900)*2.40

= $720 Unfavorable

Net = $17,120 Unfavorable

Add a comment
Know the answer?
Add Answer to:
Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Actual Budget $ 225,000 $225,000 Sales (3,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 44,520 21,000 65,520 159,480 56,975 21,000 77,975 147,025 62,000 87,000 149,000 10,480 $ 62,000...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Budget Actual $ 225,000 $225,000 Sales (6,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 73,620 17,000 90,620 134,380 88,700 17,000 105,700 119,300 53,000 68,000 121,000 $ 13,380 $...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Actual Flexible Budget $675,000 $675,000 Sales (15,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 435,000 20,000 455,000 220,000 461,890 20,000 481,890 193, 110 130,000 130,000 84,000 84,000 214,000 214,000...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Actual Budget $ 675,000 $ 675,000 Sales (15,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 435,000 20,000 455,000 220,000 461,890 20,000 481,890 193, 110 130,000 130,000 84,000 84,000...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Actual Budget $ 675,000 $ 675,000 Sales (15,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 435,000 20,000 455,000 220,000 461,890 20,000 481,890 193, 110 130,000 130,000 84,000 84,000...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Sales (3,000 pools) Budgeted S 250,000 Actual $250,000 Variable expenses: Variable cost of goods sold* Variable selling expenses 53,430 26.000 67,000 26.000 Total variable expenses 79,430 93,000 Contribution margin 170,570 157,000 Fixed expenses: Manufacturing overhead Selling and administrative 67,000 92.000 67,000 92.000 Total fixed expenses 159,000 11,570 159,000 S (2.000) Net operating...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below Flexible Actual Budget Sales (6,000 pools) Varlable expenses: Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses $ 225,000 225,8e0 73,620 88,700 17,000 105,700 119,300 17,000 90,620 134,380 53,000 68,000 53,000 68,000 121,000 121,000 $ 13,380 (1,7e0) Net...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Actual Budget $ 675,000 $ 675,000 Sales (15,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 435,000 20,000 455,000 220,000 461,890 20,000 481,890 193, 110 130,000 130,000 84,000 84,000...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Actual Budget $ 675,000 $ 675,000 Sales (15,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 435,000 20,000 455,000 220,000 461,890 20,000 481,890 193, 110 130,000 130,000 84,000 84,000...

  • Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

    Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Budget Actual Sales (6,000 pools) $ 225,000 $ 225,000 Variable expenses: Variable cost of goods sold* 73,620 88,700 Variable selling expenses 17,000 17,000 Total variable expenses 90,620 105,700 Contribution margin 134,380 119,300 Fixed expenses: Manufacturing overhead 53,000 53,000 Selling and administrative 68,000 68,000 Total fixed expenses 121,000 121,000 Net operating income...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT