Question

Problem 10B-4 Comprehensive variance Analysis with incomplete Data: Journal Entries [LO10-1, LO10-2, Lo10-3, LO10-5] Maple Products, Ltd., manufactures a super-strong hockey stick. The standard cost of one hockey stick is: Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials feet $3.30 per foot Direct labor 2 hours per hour Variable manufacturing overhead hours $1.30 per hour Total standard cost $26.32 Last year, 7,500 hockey sticks were produced and sold. Selected cost data relating to last year’s operations follow: Cr. $163,800 Accounts payable-direct materials purchased (52,000 feet) $108,900 s 68,200 Wages payable hours) Work in process-direct materials Labor rate variance 3,100 Variable overhead efficiency variance 650 The following additional information is available for last year’s operations: a. No materials were on hand at the start of last year Some of the materials purchased during the year were still on hand in the warehouse at the end of the year. b. The variable manufacturing overhead rate is based on direct labor-hours. Total actual variable manufacturing overhead cost for last year was $18,600. c. Actual direct materials usage for last year exceeded the standard by 0.2 feet per stick. Required: 1. For direct materials: a. Compute the price and quantity variances for last year. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).)



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