Maple Leaf Production manufactures truck tires. The following information is available for the last operating period.
Direct materials: 4 pounds at $2.00 | $ | 8.00 | |
Direct labor: 0.40 hours at $18.50 | 7.40 | ||
Variable production overhead: 0.25 machine-hours at $14 per hour | 3.50 | ||
Total variable costs | $ | 18.90 | |
Monthly budget $1,400,000
Direct materials purchased and used: 384,000 pounds at $1.70 | $ | 652,800 | |
Direct labor: 36,500 hours at $18.80 | 686,200 | ||
Variable overhead: 25,000 machine-hours at $14.50 per hour | 362,500 | ||
Fixed overhead | 1,401,000 | ||
Required:
a. Prepare a cost variance analysis for each variable cost
for Maple Leaf Productions.
b. Prepare a fixed overhead cost variance
analysis.
Direct Material | Direct Labor | Variable overhead | ||||
Actual Cost (A) | 6,52,800 | 6,86,200 | 3,62,500 | |||
Actual Inputs at Standard price (B) | 768000 | 675250 | 350000 | |||
Flexible budget (C) | 760000 | 703000 | 332500 | |||
Price Variance (A-B) | 1,15,200 | F | 10,950 | U | 12,500 | U |
Efficiency Variance (B-C) | 8000 | U | 27750 | F | 17,500 | F |
Cost Variance (A-C) | 1,07,200 | F | 16,800 | F | 30,000 | F |
2
Total Fixed overhead cost variance
=Actual - Absorbed Fixed overhead
=1401000-95000*15
=24000 Favorable
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period....
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 90,000 tires for $46 each. Budgeted production was 94,000 tires. Standard variable costs per tire follow: Direct materials: 4 pounds at $3.00 $ 12.00 Direct labor: 0.55 hours at $19.00 10.45 Variable production overhead: 0.23 machine-hours at $15 per hour 3.45 Total variable costs $ 25.90 Fixed production overhead costs: Monthly budget $1,380,000 Fixed overhead is applied at the...
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 90,000 tires for $46 each. Budgeted production was 94,000 tires. Standard variable costs per tire follow: Direct materials: 4 pounds at $3.00 $ 12.00 Direct labor: 0.55 hours at $19.00 10.45 Variable production overhead: 0.23 machine-hours at $15 per hour 3.45 Total variable costs $ 25.90 Fixed production overhead costs: Monthly budget $1,380,000 Fixed overhead is applied at the...
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 92,000 tires for $40 each. Budgeted production was 100,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $3.00 $ 12.00 Direct labor: 0.30 hours at $15.50 4.65 Variable production overhead: 0.20 machine-hours at $18 per hour 3.60 Total variable costs $ 20.25 Fixed production overhead costs: Monthly budget $1,950,000 Fixed overhead is applied at the...
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 95,000 tires for $38 each. Budgeted production was 100,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2.00 $ 8.00 Direct labor: 0.35 hours at $16.00 5.60 Variable production overhead: 0.15 machine-hours at $15 per hour 2.25 Total variable costs $ 15.85 Fixed production overhead costs: Monthly budget $2,350,000 Fixed overhead is applied at the...
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 95,000 tires for $45 each. Budgeted production was 99,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2.00 $ 8.00 Direct labor: 0.40 hours at $18.50 7.40 Variable production overhead: 0.25 machine-hours at $14 per hour 3.50 Total variable costs $ 18.90 Fixed production overhead costs: Monthly budget $1,400,000 Fixed overhead is applied at the...
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 95,000 tires for $45 each. Budgeted production was 99,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2.00 $ 8.00 Direct labor: 0.40 hours at $18.50 7.40 Variable production overhead: 0.25 machine-hours at $14 per hour 3.50 Total variable costs $ 18.90 Fixed production overhead costs: Monthly budget $1,400,000 Fixed overhead is applied at the...
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 95,000 tires for $45 each. Budgeted production was 99,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2.00 $ 8.00 Direct labor: 0.40 hours at $18.50 7.40 Variable production overhead: 0.25 machine-hours at $14 per hour 3.50 Total variable costs $ 18.90 Fixed production overhead costs: Monthly budget $1,400,000 Fixed overhead is applied at the...
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