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Author Question: Joan's Style manufactures dining room tables for both home and restaurant locations. Kona Clair, the ... (Read 19 times)

ninaj

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on: Feb 5, 2023
Joan's Style manufactures dining room tables for both home and restaurant locations. Kona Clair, the company's controller, developed the following standard costs for each 5-foot table. Ms. Clair developed these standards based on the company manufacturing 1,200 tables per month.

Standard PriceStandard QuantityStandard Cost
Direct materials$45.00 per linear foot5 linear feet$225.00
Direct labor  18.50 per DLH12 DLH222.00
Variable overhead  16.20 per DLH12 DLH194.40
Fixed overhead  28.60 per DLH12 DLH  343.20
Total standard cost per table$984.60

At the end of the current month, Kona reported the following operational results:
•The company actually manufactured 1,100 tables during the month.
•5,900 linear feet of direct materials were purchased during the month at a total cost of
$258,420.
•5,400 linear feet of direct materials were used to manufacture the tables.
•13,400 direct labor hours were worked at a total cost of $242,880.
•Actual variable overhead was $234,600.
•Actual fixed overhead was $410,500.

Required:

a.Calculate the direct material price variance for the month.
b.Calculate the direct material quantity variance for the month.
c.Calculate the direct labor rate variance for the month.
d.Calculate the direct labor efficiency variance for the month.
e.Calculate the variable overhead spending variance for the month.
f.Calculate the variable overhead efficiency variance for the month.
g.Calculate the fixed overhead spending variance for the month.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by ninaj on Feb 5, 2023

KobyRhoads

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Reply #1 on: Feb 5, 2023
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ninaj

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)

bblaney

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Reply 3 on: Yesterday
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