[kafsaneh]

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 $2.25 $2.00
Raw materials units used 10,600 10,000
Direct labor payroll $122,400 $120,000
Direct labor hours worked 14,400 15,000
Manufacturing overhead incurred $184,500
Manufacturing overhead applied $189,000
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 $400,000. 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 $ Favorable Unfavorable
Materials price variance $ Favorable Unfavorable
Materials quantity variance $ Favorable Unfavorable
Total labor variance $ Favorable Unfavorable
Labor price variance $ Unfavorable Favorable
Labor quantity variance $ Favorable Unfavorable


Compute the total overhead variance.
$ Favorable Unfavorable






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 e.g. -45 or parentheses e.g. (45).)
DINKEL MANUFACTURING CORPORATION

Income Statement
For the Month Ended June 30, 2008

Selling and administrative expenses Labor price Sales Labor quantity Cost of goods sold Materials quantity Materials price Overhead $
Materials quantity Overhead Selling and administrative expenses Sales Cost of goods sold Materials price Labor price Labor quantity

Gross profit (at standard)
Variances
Materials quantity Overhead Labor quantity Selling and administrative expenses Labor price Materials price Sales Cost of goods sold $
Labor price Materials quantity Materials price Cost of goods sold Labor quantity Sales Overhead Selling and administrative expenses
Sales Materials quantity Cost of goods sold Materials price Labor price Selling and administrative expenses Overhead Labor quantity
Materials quantity Labor price Labor quantity Overhead Sales Selling and administrative expenses Cost of goods sold Materials price
Labor price Sales Labor quantity Cost of goods sold Materials price Selling and administrative expenses Overhead Materials quantity

Total variance - Favorable Unfavorable

Gross profit (actual)
Sales Labor price Labor quantity Cost of goods sold Materials price Overhead Selling and administrative expenses Materials quantity

Net income $

[tickle]

This is obviously a very complicated, involved homework assignment and if you read the forum basics, we do not assist with homework. We are all volunteers here and try to do our best to help people with problems, this does not include reading through the above to give you an answer to this problem.

Tick

[morgaine300]

The one false statement in that is "we do not assist with homework." "Assisting" is exactly what we do. What we don't do is just do it for you. (Or at least, I do not define assisting and doing as the same thing.)

However, everything else she said is true. It absolutely is a long involved problem and would take a lot of work for someone to go through, which I am not willing to do without seeing kind of attempt on your part at doing it. It would also be difficult to just try to "give hints" on something that involved. You've got a bunch of variances. (And I don't even do overhead variances.) And then an income statement on top of that.

You need to narrow this down somewhere. There should be examples in your book. At least look at them and make some kind of attempt to do it, which would at least give us a starting point.