# Managerial Accounting: P10-15 Helix Company produces several products in its factory

Managerial Accounting
Problem 10-15 Comprehensive Variance Analysis
Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 1,950 robes. The standard costs associated with this level of production are as follows:
Total Per Unit of Product
Direct materials 35,490 18.20
Direct labor 7,020 3.60
Variable manufacturing overhead (based on direct labor-hours) 2,340 1.20
23.00

During April, the factory worked only 760 direct labor-hours and produced 2,000 robes. The following actual costs were recorded during the month:
Total Per Unit of Product
Direct materials (6,000 yards) 36,000 18.00
Direct labor 7,600 3.80
Variable manufacturing overhead (based on direct labor-hours) 3,800 1.90
23.70
At standard, each robe should require 2.8 yards of material. All of the materials purchased during the month were used in production.

Required:
Compute the following variances for April:
1. The materials price and quantity variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar. Omit the "\$" sign in your response.)
2. The labor rate and efficiency variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round your final answers to the nearest dollar amount. Omit the "\$" sign in your response.)
3. The variable manufacturing overhead rate and efficiency variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar. Omit the "\$" sign in your response.)