Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Standard Quantity or Hours per Unit of Output Standard Price or Rate 7.6 ounces $ 9.40 per ounce $ 18.00 per hour Direct labor 0.10 hours Variable manufacturing overhead 0.10 hours $ 5.30 per hour The company has reported the following actual results for the product for July: Actual output 7,600 units Raw materials purchased Actual cost of raw materials purchased Raw materials used in production 63,000 ounces $ 541,800 57,750 ounces Actual direct labor-hours 820 hours Actual direct labor cost $ 16,072 $ 4,592 Actual variable overhead cost The raw materials price variance for the month is closest to:
Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Standard Quantity or Hours per Unit of Output Standard Price or Rate 7.6 ounces $ 9.40 per ounce $ 18.00 per hour Direct labor 0.10 hours Variable manufacturing overhead 0.10 hours $ 5.30 per hour The company has reported the following actual results for the product for July: Actual output 7,600 units Raw materials purchased Actual cost of raw materials purchased Raw materials used in production 63,000 ounces $ 541,800 57,750 ounces Actual direct labor-hours 820 hours Actual direct labor cost $ 16,072 $ 4,592 Actual variable overhead cost The raw materials price variance for the month is closest to:
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 12P: Overhead application rate Roll Tide Manufacturing Inc. uses a job order cost system and standard...
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning