Ingel Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.3 pounds $6.00 per pound $25.80 Direct Labor 0.7 hours $20.00 per hour $14.00 Variable Overhead 0.7 hours $2.00 per hour $1.40 The company reported the following results concerning this product in September. Originally budgeted output 1,900 units Actual output 1,700 units Raw materials purchased and used in production 7,210 pounds Actual direct labor-hours 1,260 hours Actual cost of raw materials purchased $41,097 Actual direct labor cost $25,578 Actual variable overhead cost $2,394 The company applies variable overhead on the basis of direct labor-hours. d. Compute the direct labor rate variance. e. Compute the variable overhead spending variance. f. Compute the variable overhead efficiency variance.
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.
Ingel Corporation makes a product with the following
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
| Direct materials | 4.3 pounds | $6.00 per pound | $25.80 |
| Direct Labor | 0.7 hours | $20.00 per hour | $14.00 |
| Variable |
0.7 hours | $2.00 per hour | $1.40 |
The company reported the following results concerning this product in September.
|
Originally budgeted output |
1,900 units |
| Actual output | 1,700 units |
| Raw materials purchased and used in production | 7,210 pounds |
| Actual direct labor-hours | 1,260 hours |
| Actual cost of raw materials purchased | $41,097 |
| Actual direct labor cost | $25,578 |
| Actual variable overhead cost | $2,394 |
The company applies variable overhead on the basis of direct labor-hours.
d. Compute the direct labor rate variance.
e. Compute the variable overhead spending variance.
f. Compute the variable overhead efficiency variance.
Can you show your workings please
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