(20 Eastorn Droams Lid manufachures a single product The bodgetod sales and production for Yoar 2021 is 10,000 units per month over the 1months The standard selling price and costs of the product are RM RM Seling Price Materials - 2 kg Labour-3 hours 50 16 6. 12 Varlable Production Overhead -3 hours 10 34 11 Total Variable Cost 16 12 Contribution The actual results for the month were 9,500 units RM494,000 RM167,960 RM114,513 RM61,446 Production and sales Sales Materials-19,760 kg Wages - 27,930 hours Variable Production Overhead Required

(20 Eastorn Droams Lid manufachures a single product The bodgetod sales and production for Yoar 2021 is 10,000 units per month over the 1months The standard selling price and costs of the product are RM RM Seling Price Materials - 2 kg Labour-3 hours 50 16 6. 12 Varlable Production Overhead -3 hours 10 34 11 Total Variable Cost 16 12 Contribution The actual results for the month were 9,500 units RM494,000 RM167,960 RM114,513 RM61,446 Production and sales Sales Materials-19,760 kg Wages - 27,930 hours Variable Production Overhead Required

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 8E: Direct labor variances The following data relate to labor cost for production of 20,000 cellular...

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Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the material and $14 as the standard labor cost per hour. How has your explanation of the variances changed?
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Variances Refer to Cornerstone Exercise 9.6. Required: 1. Calculate the variable overhead spending variance using the formula approach. (If you compute the actual variable overhead rate, carry your computations out to five significant digits and round the variance to the nearest dollar.) 2. Calculate the variable overhead efficiency variance using the formula approach. 3. Calculate the variable overhead spending variance and variable overhead efficiency variance using the three-pronged graphical approach. 4. What if 26,100 direct labor hours were actually worked in February? What impact would that have had on the variable overhead spending variance? On the variable overhead efficiency variance? Standish Company manufactures consumer products and provided the following information for the month of February: Required: 1. Calculate the fixed overhead spending variance using the formula approach. 2. Calculate the volume variance using the formula approach. 3. Calculate the fixed overhead spending variance and volume variance using the three-pronged graphical approach. 4. What if 129,600 units had actually been produced in February? What impact would that have had on the fixed overhead spending variance? On the volume variance?
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