Grand Canyon ACC350 unit 4 assignment

Please complete the following exercises and/or problems from the textbook:

• E23-16
• E23-19
• E23-20
• CP23-36

2. Calculating materials and labor variances
Great Fender, which uses a standard cost accounting system, manufactured 20,000
boat fenders during 2014, using 144,000 square feet of extruded vinyl purchased at
$1.05 per square foot. Production required 420 direct labor hours that cost $13.50
per hour. The direct materials standard was 7 square feet of vinyl per fender, at a
standard cost of $1.10 per square foot. The labor standard was 0.025 direct labor
hour per fender, at a standard cost of $12.50 per hour.
Compute the cost and efficiency variances for direct materials and direct labor.
Does the pattern of variances suggest Great Fender's managers have been making
trade-offs? Explain. DL Eff. Var. $1,000 F

3.Computing overhead variances
Review the data from Great Fender given in Exercise E23-19. Consider the
following additional information:
Static budget variable overhead $ 5,500
Static budget fixed overhead $ 22,000
Static budget direct labor hours 550 hours
Static budget number of units 22,000 units
Great Fender allocates manufacturing overhead to production based on standard
direct labor hours. Great Fender reported the following actual results for 2014:
actual variable overhead, $4,950; actual fixed overhead, $23,000.
Requirements
1. Compute the overhead variances for the year: variable overhead cost variance,
variable overhead efficiency variance, fixed overhead cost variance, and fixed
overhead volume variance.
2. Explain why the variances are favorable or unfavorable.
1. FOH Vol. Var. $2,000 U

4. Calculating materials and labor variances and preparing journal entries
This continues the Davis Consulting, Inc. situation from Problem P22-56 of
Chapter 22. Assume Davis has created a standard cost card for each job. Standard
direct materials include 14 software packages at a cost of $900 per package.
Standard direct labor cost per job include 90 hours at $120 per hour. Davis plans
on completing 12 jobs during March 2013.
Actual direct materials costs for March included 90 software packages at a total cost
of $81,450. Actual direct labor costs included 100 hours per job at an average rate
Actual direct labor included 100 hours per job at an average rate of 125 per hour. Davis completed all 12 jobs in March.
Requirements
1. Calculate direct materials cost and efficiency variances.
2. Calculate direct labor cost and efficiency variances.
3. Prepare journal entries to record the use of both materials and labor for March
for the company.

E23-20 & CP23-36:
1. Consider the following additional information:
Static budget variable overhead $ 5,500
Static budget fixed overhead $ 22,000
Static budget direct labor hours 550 hours
Static budget number of units 22,000 units

Great Fender allocates manufacturing overhead to production based on standard
direct labor hours. Great Fender reported the following actual results for 2014:
actual variable overhead, $4,950; actual fixed overhead, $23,000.
Requirements
1. Compute the overhead variances for the year: variable overhead cost variance,
variable overhead efficiency variance, fixed overhead cost variance, and fixed
overhead volume variance.
FOH Vol. Var. $2,000 U
________________________________________________________________________________________
2. Assume Davis has created a standard cost card for each job. Standard
direct materials include 14 software packages at a cost os $900 per package.
Standard direct labor costs per job include 90 hours at $120 per hour. Davis plans
on completing 12 jobs during March 2013.

Actual direct materials costs for March include 90 software packages at a total cost
of $81,450. Actual direct costs included 100 hours per job at an average rate
of $125 per hour. Davis completed all 12 jobs in March.

Requirements
1. Calculate direct materials cost and efficiency variances.
2. Calculate direct labor cost and efficiency variances.
3. Prepare journal entries to record the use of both materials and labor for March
for the company.