Dinkel Manufacturing Corporation - Variances & Income Stat.
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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
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