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Prepare variance analysis for materials, labor and overhead

Prepare variance analysis for materials, labor and overhead

Managerial Accounting: The Cornerstone of Business Decision-Making
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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Sample Problems: 1. A company produces a single product that has the following standard costs: Materials Labor Variable overhead 5 pieces at P4 per piece 3 hours at P10 per hour 3 hours at P15 per hour 3 hours at P5 per hour P20 30 45 15 Fixed overhead Total manufacturing cost P110 The budgeted fixed overhead is P15,000. This is for the budgeted production (the normal capacity level) of 1,000 units requiring total budgeted time of 3,000 hours. During the period, the company produced 1,100 units and incurred the following costs: Materials Labor Variable overhead Fixed overhead Total 5,600 pieces at P3.80 per piece 3,250 hours at P11 per hour 3,250 hours at 14.50 per hour P21,280 35,750 47,125 16,000 P120,155 Prepare variance analysis for materials, labor and overhead.
Transcribed Image Text:Sample Problems: 1. A company produces a single product that has the following standard costs: Materials Labor Variable overhead 5 pieces at P4 per piece 3 hours at P10 per hour 3 hours at P15 per hour 3 hours at P5 per hour P20 30 45 15 Fixed overhead Total manufacturing cost P110 The budgeted fixed overhead is P15,000. This is for the budgeted production (the normal capacity level) of 1,000 units requiring total budgeted time of 3,000 hours. During the period, the company produced 1,100 units and incurred the following costs: Materials Labor Variable overhead Fixed overhead Total 5,600 pieces at P3.80 per piece 3,250 hours at P11 per hour 3,250 hours at 14.50 per hour P21,280 35,750 47,125 16,000 P120,155 Prepare variance analysis for materials, labor and overhead.
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