Business, 13.07.2021 15:40 Kassiekass

A manufacturing company is reviewing its results for the quarter ended June 30, year 4. The company uses standard costs, based on past performance and expectations for each quarter, to monitor performance and analyze variances. At the end of each quarter, variances are identified and investigated further. Standard amount Actual amount
Direct labor hours 10000 8000
Labor rate per hour $10.00 $10.50
Units of materials used in manufacturing 4750 4000
Price per unit of material $5.00 $5.25
Variable overhead $2.00 per direct labor hour $21,500 total
Fixed overhead $15,000 $15,000

Actual units sold for the quarter were 9,500 ( budgeted 10,000) with a profit per unit of $3.67 (budgeted $1.50)
Each unit was sold for $21.00, with a budgeted selling price of $20.00.
The budgeted contribution margin per unit for the quarter was $5.65. The actual contribution margin per unit for the quarter was $8.15. Assume that the contribution margin is equivalent to the operating margin.
Standard units of materials used in manufacturing have been adjusted for actual production.
Choose the right answer choise for the quarter ended June 30th and the variance for the quarter is favorable or unfavorable.

Required:
Calculate the Selling price variance and state if favorable or unfavorable?

Answers: 3

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A manufacturing company is reviewing its results for the quarter ended June 30, year 4. The company...

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