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ARC Company produces_standard costing_Variance analysis

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Question;ARC Company produces several;products in its factory, including a karate robe. The company uses a standard;cost system to assist in the control of costs. According to the standards that;have been set for the robes, the factory should work 780 direct labor-hours;each month and produce 3,900 robes. The standard costs associated with this;level of production are as follows;Total Per Unit of;Product;Direct materials........................ $73,710;$18.90;Direct labor.............................. $13,260;3.40;Variable manufacturing overhead;(based on;direct labor-hours)................... $2,340;0.60;$22.90;During April, the factory worked;only 750 direct labor-hours and produced 4,000 robes. The following actual;costs were recorded during the month;Total Per Unit of;Product;Direct materials (12,400 yards)............... $74,400 $18.60;Direct labor........................................... $14,400;3.60;Variable manufacturing overhead.......... $8,000 2.00;$24.20;At standard, each robe should;require 3.0 yards of material. All of the materials purchased during the month;were used in production. Overhead applied based on direct labor hours. For;standards and actuals, you are given total costs and the per unit cost. For;standards and actuals, you?ll need to (2) convert the total cost of DM to a;cost per yard, (2) convert the total cost of DL to a cost per direct labor hour;and (3) covert the total cost of variable overhead to a cost per direct labor;hour.;Required;For Direct;Materials--;1.;What;is the actual quantity of input at the actual price?;2.;What;is the actual quantity of input at the standard price?;3.;What;is the standard quantity of input allowed for the actual output?;4.;What;is the standard quantity of input allowed for the actual output at the standard;price?;5.;What;is the flexible budget?;6.;What;is the DM price variance?;7.;What;is the DM quantity variance?;8.;Check Figure--What is the total variance associated;with DM? $1,200F.;For Direct;Labor--;9.;What;is the actual quantity of input at the actual price?;10.;What;is the actual quantity of input at the standard price?;11.;What;is the standard quantity of input allowed for the actual output?;12.;What;is the standard quantity of input allowed for the actual output at the standard;price?;13.;What;is the flexible budget?;14.;What;is the DL price variance?;15.;What;is the DL quantity variance?;16.;Check Figure--What is the total variance associated;with DL? $800U.;For Variable;Overhead--;17.;What;is the actual quantity of input at the actual price?;18.;What;is the actual quantity of input at the standard price?;19.;What;is the standard quantity of input allowed for the actual output?;20.;What;is the standard quantity of input allowed for the actual output at the standard;price?;21.;What;is the flexible budget?;22.;What;is the Variable OH price variance?;23.;What;is the Variable OH quantity variance?;24.;Check Figure--What is the total variance associated;with Variable OH? $5,600 U.

 

Paper#44614 | Written in 18-Jul-2015

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