Direct materials Direct labor Variable overhead 6.5 0.2 0.2 ounces hours 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 Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost - $2.00 per ounce $ 23.00 per hour $ 6.00 per hour 2,700 2,800 19,380 ounces 21,400 ounces 500 hours $40,660 $12,050 $ 3,100 The variable overhead Efficiency variance for June is: $360 F $360 U $372 U * $372 F units units The company applies variable overhead on the basis of direct labor-hours. $ 13.00 $4.60 $ 1.20

Direct materials Direct labor Variable overhead 6.5 0.2 0.2 ounces hours 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 Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost - $2.00 per ounce $ 23.00 per hour $ 6.00 per hour 2,700 2,800 19,380 ounces 21,400 ounces 500 hours $40,660 $12,050 $ 3,100 The variable overhead Efficiency variance for June is: $360 F $360 U $372 U * $372 F units units The company applies variable overhead on the basis of direct labor-hours. $ 13.00 $4.60 $ 1.20

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Description: Direct materialsDirect laborVariable overhead6.5 ounces0.2 hours0.2hoursThe company reported the following results concerning this product in June.Originally budgeted outputActual outputRaw materials used in productionPurchases of raw materialsActua

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 20E: Calculating amount of factory overhead applied to work in process The overhead application rate for...

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Calculating amount of factory overhead applied to work in process The overhead application rate for a company is 2.50 per unit, made up of 1.00 for fixed overhead and 1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavorable flexible budget variance of 200. Actual overhead for the month was 27,000. What was the amount of the budgeted overhead for the actual level of production?
Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production for direct materials and conversion costs. 3. Compute unit cost. Round to three decimal places. 4. Calculate the cost of goods transferred to Painting at the end of the month. Calculate the cost of ending inventory.
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