Manatee Corp

question 27

Essay

Manatee Corp. has developed standard costs based on a predicted operating level of 352,000 units of production, which is 80% of capacity. Variable overhead is $281,600 at this level of activity, or $0.80 per unit. Fixed overhead is $440,000. The standard costs per unit are:
Manatee actually produced 330,000 units at 75% of capacity and actual costs for the period were:
Calculate the following variances and indicate whether each variance is favorable or unfavorable:
(1) Direct labor efficiency variance:
$__________________
(2) Direct materials price variance:
$__________________
(3) Controllable overhead variance:
$__________________

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Definitions:

January 20 Call

An options contract giving the holder the right to buy a specific asset at a predetermined price on or before January 20th.

T-Bill Rate

The yield or interest rate paid to investors in U.S. Treasury bills, which are short-term government securities.

Call Option

A financial agreement allowing the purchaser the option, rather than the requirement, to purchase a given stock, bond, commodity, or different asset at an agreed-upon price within a certain timeframe.

Value Increase

Refers to the rise in worth or price of assets, investments, or goods over time.