Direct labor: 2 hours 16 Manufacturing overhead Total 12 $58 The flexible budget system provides for $50,000 of fixed overhead at normal capacity of 10,000 direct labor hours. Variable overhead is projected at $1 per direct labor hour. Actual results for the period indicated the following: Production: 5,000 gallons Direct material: 12,000 quarts purchased at a cost of $7.20/quart; 10,500 quarts used 20,000 quarts purchased at a cost of $3.90/quart; 19,800 quarts used A B Direct labor: 9.800 hours worked at a cost of $79,380 $48,100 21,000 $69,100 Overhead: Fixed Variable Total overhead Required: 1. What is the application rate per direct labor hour, the total overhead cost equation, the standard quantity for each material, and the standard hours? 2. Compute the following variances: a. Total material price variance b. Total material quantity variance c. Labor rate variance d. Labor efficiency variance e. MOH volume variance f. MOH efficiency variance g. MOH spending variance, both fixed and variable
Direct labor: 2 hours 16 Manufacturing overhead Total 12 $58 The flexible budget system provides for $50,000 of fixed overhead at normal capacity of 10,000 direct labor hours. Variable overhead is projected at $1 per direct labor hour. Actual results for the period indicated the following: Production: 5,000 gallons Direct material: 12,000 quarts purchased at a cost of $7.20/quart; 10,500 quarts used 20,000 quarts purchased at a cost of $3.90/quart; 19,800 quarts used A B Direct labor: 9.800 hours worked at a cost of $79,380 $48,100 21,000 $69,100 Overhead: Fixed Variable Total overhead Required: 1. What is the application rate per direct labor hour, the total overhead cost equation, the standard quantity for each material, and the standard hours? 2. Compute the following variances: a. Total material price variance b. Total material quantity variance c. Labor rate variance d. Labor efficiency variance e. MOH volume variance f. MOH efficiency variance g. MOH spending variance, both fixed and variable
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 10PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...
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Hi, hope u doing great. Please help me answering the no.2 from D - G. Thankyou in advance :). Both of the pictures are connected question :)
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