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Dinkel Manufacturing Corporation - Variances & Income Stat.

Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2008.
Costs and Production Data Actual Standard
Raw materials unit cost $2.70 $2.40
Raw materials units used 10,650 10,040
Direct labor payroll $147,186 $144,288
Direct labor hours worked 14,430 15,030
Manufacturing overhead incurred $184,900
Manufacturing overhead applied $189,378
Machine hours expected to be used at normal capacity 42,500
Budgeted fixed overhead for June $51,000
Variable overhead rate per hour $3.00
Fixed overhead rate per hour $1.20
Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $457,800. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.

Compute all of the variances for (1) direct materials and (2) direct labor.
Total materials variance $
Materials price variance $
Materials quantity variance $
Total labor variance $
Labor price variance $
Labor quantity variance $
Compute the total overhead variance $

Prepare an income statement for management. Ignore income taxes. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign preceding the number eg -45 or parentheses eg (45).)
DINKEL MANUFACTURING CORPORATION
Income Statement
For the Month Ended June 30, 2008

$
Gross profit (at standard)

Variances $

Total variance -

Gross profit (actual)

Net income $

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Solution Summary

The solution computes Dinkel Manufacturing Corporation's - Variances (material & labor) & Income Statement

$2.19