Kartman Corporation makes a product with the following standard costs: Standard Quantity Standard Cost or Hours 6.5 pounds Standard Price or Rate Per Unit $ 7.00 per pound $ 24.00 per hour $ 4.00 per hour $ 45.50 $ 14.40 Direct materials Direct labor 0.6 hours Variable overhead 0.6 hours $ 2.40 In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for June is:
Kartman Corporation makes a product with the following standard costs: Standard Quantity Standard Cost or Hours 6.5 pounds Standard Price or Rate Per Unit $ 7.00 per pound $ 24.00 per hour $ 4.00 per hour $ 45.50 $ 14.40 Direct materials Direct labor 0.6 hours Variable overhead 0.6 hours $ 2.40 In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for June is:
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 8P: Carlo Lee Corp. has established the following standard cost per unit:
Although 10,000 units were...
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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:Multiple Choice
$7,620 U
$7,620 F
$6,825 U
$6,825 F
Transcribed Image Text:Kartman Corporation makes a product with the following standard costs:
Standard Quantity
Standard Cost
or Hours
Standard Price or Rate
Per Unit
$ 7.00 per pound
$ 24.00 per hour
$ 4.00 per hour
$ 45.50
$ 14.40
$ 2.40
Direct materials
6.5 pounds
Direct labor
0.6 hours
Variable overhead
0.6 hours
In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290
direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost
was $57,021 and the actual variable overhead cost was $8,931.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for June is:
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