Question

need help with all parts pls

16 Jordan Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles: Sklpped Amount of direct materials per candle Price of direct materials per pound Quantity of labor per unit Price of direct labor per hour Total budgeted fixed overhead 1.80 pounds 0.60 0.90 hours $ 8.90/hour $159,800 During 2017, Jordan planned to produce 34,000 drip candles. Production lagged behind expectations, and it actually produced only 26,000 drip candles. At year-end, direct materials purchased and used amounted to 48,300 pounds at a unit price of $0.56 per pound. Direct labor costs were actually $8.20 per hour and 26,200 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $127,400. Overhead is applied to products using a predetermined overhead rate based estimated units. Required a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle. c.&d. Compute the actual cost per candle for direct materials, direct labor, overhead and also the total actual cost per candle. e. Compute the price and usage variances for direct materials and direct labor. f. Compute the fixed cost spending and volume variances. Complete this question by entering your answers in the tabs below. Req C and D Req F Req A and B Req E Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle. (Round your answers to 2 decimal places.) Standard Cost cost per unit Direct material Direct labor Overhead Total per candle <Req A and B Req C and D

Answer 1

a&b.

Cost	Standard cost per unit
Direct material	$1.08 (1.80*$0.60)
Direct labor	8.01 (0.90*$8.90)
Overhead	4.7 ($159,800/34,000)
Total per candle	$13.79

c&d.

Cost	Actual cost per unit
Direct material	$1.04 (48,300*$0.56 / 26,000)
Direct labor	8.26 (26,200*$8.20 / 26,000)
Overhead	4.9 ($127,400/26,000)
Total per candle	$14.2

e.

Direct material price variance = Actual quantity * (Standard price-Actual price)

Direct material price variance = 48,300 * $0.04 ($0.60-0.56) = $1,932 Favorable

Direct material usage variance = Standard price * (Standard quantity-Actual quantity)

Standard quantity = 26,000*1.80 = 46,800

Direct material usage variance = $0.60 * (46,800-48,300) = $900 Unfavorable

Direct labor price variance = Actual hours * (Standard price-Actual price)

Direct labor price variance = 26,200 * ($8.90-8.20) = $18,340 Favorable

Direct labor usage variance = Standard price * (Standard hours-Actual hours)

Standard hours = 26,000*0.90 = 23,400 hours

Direct labor usage variance = $8.90 * (23,400-26,200) = $24,920 Unfavorable

f.

Fixed overhead spending variance = Actual fixed overhead - Budgeted fixed overhead

Fixed overhead spending variance = $127,400 - 159,800 = $32,400 Favorable

Fixed overhead volume variance = Budgeted fixed overhead - Applied fixed overhead

Fixed overhead volume variance = $159,800 - 122,200 (26,000*$4.7) = $37,600 Unfavorable