Required:1) Prepare a schedule of total standard manufacturing costs for the 24000 production of blocks in April 2021. 2) For the month of April, compute the following variances, indicating whether each is favourable (F) or unfavourable (U):a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance InputCost/Block0.5 lb. @ $12/lb.$ 6.00Direct materialsDirect manufacturing labour1.4 hours @ $20/hour28.00Manufacturing overhead:Variable$6/lb. 0.5 Ib.3.00Fixed$15/lb. 0.3 lb.4.50Standard cost per block$41.50Actual results for April 2021 were as follows:Production24,000 blocksDirect materials purchased12,000 Ib. at $13/1lb.Direct materials used11,450 lb.Direct manufacturing labour38,000 hours for $798000Variable manufacturing overhead$68,150Fixed manufacturing overhead$155,000 Don Johnson is the management accountant for Cari-Blocks (CB), which manufacturesspecialty blocks. CB uses two direct cost categories: direct materials and directmanufacturing labour. Johnson feels that manufacturing overhead is most closely related tomaterial usage. Therefore, CB allocates manufacturing overhead to production based uponpounds of materials used.At the beginning of 2021, CB budgeted annual production of 200,000 blocks and adopted thefollowing standards for each block:

Standard costing is one of the important tool of management accounting, under which standard or…

Required: 1) Prepare a schedule of total standard manufacturing costs for the 24000 production of blocks in April 2021. 2) For the month of April, compute the following variances, indicating whether each is favourable (F) or unfavourable (U): a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance

Required: 1) Prepare a schedule of total standard manufacturing costs for the 24000 production of blocks in April 2021. 2) For the month of April, compute the following variances, indicating whether each is favourable (F) or unfavourable (U): a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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