Miguez Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Standard Cost Hours Rate Per Unit Direct materials 2.4 liters $ 7.10 per liter $17.04 Direct labor 0.5 hours $23.00 per hour $11.50 Variable overhead 0.5 hours $ 2.10 per hour $ 1.05 The company budgeted for production of 2,700 units in September, but actual production was 2,600 units. The company used 5,540 liters of direct material and 1,690 direct labor-hours to produce this output. The company purchased 5,900 liters of the direct material at $7.30 per liter. The actual direct labor rate was $25.10 per hour and the actual variable overhead rate was $1.80 per hour. 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 variable overhead rate variance for September is:
Miguez Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Standard Cost Hours Rate Per Unit Direct materials 2.4 liters $ 7.10 per liter $17.04 Direct labor 0.5 hours $23.00 per hour $11.50 Variable overhead 0.5 hours $ 2.10 per hour $ 1.05 The company budgeted for production of 2,700 units in September, but actual production was 2,600 units. The company used 5,540 liters of direct material and 1,690 direct labor-hours to produce this output. The company purchased 5,900 liters of the direct material at $7.30 per liter. The actual direct labor rate was $25.10 per hour and the actual variable overhead rate was $1.80 per hour. 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 variable overhead rate variance for September is:
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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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.
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Transcribed Image Text:Miguez Corporation makes a product with the following standard costs:
Standard Quantity or
Standard Price or
Standard Cost
Hours
Rate
Per Unit
Direct materials
2.4 liters
$ 7.10 per liter
$17.04
$23.00 per hour
$ 2.10 per hour
Direct labor
0.5 hours
$11.50
Variable overhead
0.5 hours
$ 1.05
The company budgeted for production of 2,700 units in September, but actual production was 2,600 units. The company used 5,540 liters of direct
material and 1,690 direct labor-hours to produce this output. The company purchased 5,900 liters of the direct material at $7.30 per liter. The actual
direct labor rate was $25.10 per hour and the actual variable overhead rate was $1.80 per hour.
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 variable overhead rate variance for September is:
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