SoundSmart manufactures headphone cases. During September 2012, the company produced 108,000 cases a

QUALITYWRITERS.ORG is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.


Order a Similar Paper Order a Different Paper

SoundSmart
manufactures headphone cases. During September 2012, the company produced
108,000 cases and recorded the following cost data

P23-35B
Computing standard cost variances and reporting to management [45–60 min]

SoundSmart
manufactures headphone cases. During September 2012, the company produced
108,000 cases and recorded the following cost data:

Standard
Cost Information:

Quantity

Price

Direct materials

2 parts

$ 0.16 per part

Direct labor

0.02 hours

$ 7.00 per hour

Variable manufacturing overhead

0.02 hours

$11.00 per hour

Fixed
manufacturing overhead ($29,400 for static budget volume of 98,000 units and
1,960 hours, or $15 per hour)

Actual
Information:
Direct
materials (193,000 parts @ $0.21 per part = $40,530)
Direct
labor (1,760 hours @ $7.15 per hour = $12,584)
Variable
manufacturing overhead $12,000
Fixed
manufacturing overhead, $30,000

Requirements
1.
Compute the price and efficiency variances for direct materials and direct
labor.
2.
For manufacturing overhead, compute the variable overhead spending and
efficiency variances and the fixed overhead spending and volume variances.
3.
SoundSmart’s management used better quality materials during September.
Discuss
the trade-off between the two direct material variances.

"Is this question part of your assignment? We can help"

ORDER NOW
Writerbay.net

Got stuck with a writing task? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order


Order a Similar Paper Order a Different Paper
Writerbay.net