A company makes a product with the following standard costs: Standard Quantity or Standard Cost Per Hours Standard Price or Rate Unit $ 4.00 per ounce $ 10.00 per hour $ 9.00 per hour $ 30.40 $ 5.00 $ 4.50 Direct materials 7.6 ounces Direct labor 0.5 hours Variable overhead 0.5 hours The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials 3,000 units 3,100 units 16,300 ounces 17,400 ounces Actual direct labor-hours 510 hours $ 45,000 $ 13,000 $ 3,500 Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies varlable overhead on the basis of direct labor-hours. The labor rate varlance for June Is: Multiple Choice $7,900 F $7.900 U $1,337 U
A company makes a product with the following standard costs: Standard Quantity or Standard Cost Per Hours Standard Price or Rate Unit $ 4.00 per ounce $ 10.00 per hour $ 9.00 per hour $ 30.40 $ 5.00 $ 4.50 Direct materials 7.6 ounces Direct labor 0.5 hours Variable overhead 0.5 hours The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials 3,000 units 3,100 units 16,300 ounces 17,400 ounces Actual direct labor-hours 510 hours $ 45,000 $ 13,000 $ 3,500 Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies varlable overhead on the basis of direct labor-hours. The labor rate varlance for June Is: Multiple Choice $7,900 F $7.900 U $1,337 U
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 9P: USD Inc. has established the following standard cost per unit:
Although 10,000 units were budgeted,...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:A company makes a product with the following standard costs:
Standard
Quantity or
Hours
Standard Cost Per
Standard Price or Rate
Unit
Direct materials
7.6 ounces
$4.00 per ounce
$30.40
$5.00
$ 4.50
Direct labor
0.5 hours
$ 10.00 per hour
Variable overhead
0.5 hours
$ 9.00 per hour
The company reported the following results concerning this product In June.
Originally budgeted output
Actual output
Raw materials used in production
Purchases of raw materials
Actual direct labor-hours
Actual cost of raw materials purchases
Actual direct labor cost
Actual variable overhead cost
3,000 units
3,100 units
16,300 ounces
17,400 ounces
510 hours
$ 45,000
$ 13,000
$3,500
The company applles varlable overhead on the basls of direct labor-hours.
The labor rate varlance for June Is:
- ఆడిం
Multiple Choice
$7.900 F
$7,900 U
$1,337 U
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