Requirements:Compute4.Direct-labor quantity (efficiency) variance5.Variable manufacturing overhead rate variance,6.Variable manufacturing overhead efficiency variance. Question BThe following information has been gathered from KLP. cORmanx's static budget for the mostrecent months.• Direct materials per unit of product 5 pounds *$1.50per pound.• Direct labour per unit of product 45 hour*$20 per hour.Variable manufacturing overhead $15 per direct labour hourThe actual activity of the most recent month:10,000 pounds direct material purchased at cost $17,000.9,504 pounds of direct material used to produce 1728 Units of product.864 total direct labour hours were used and total payment was $18,144Variable manufacturing overhead costs $13,824.

Variance: It is the difference between the budgeted and actual amount spent on material and labor.…

Question B The following information has been gathered from KLP GOrmanx's static budget for the most recent months. • Direct materials per unit of product 5 pounds "$1.50per pound. • Direct Jabour per unit of product 45 hour*$20 per hour. Variable manufacturing overhead $15 per direct labour hour The actual activity of the most recent month: 10,000 pounds direct material purchased at cost $17,000. • 9,504 pounds of direct material used to produce 1728 Units of product. 864 total direct labour hours were used and total payment was $18,144 Variable manufacturing overhead costs $13,824.

Question B The following information has been gathered from KLP GOrmanx's static budget for the most recent months. • Direct materials per unit of product 5 pounds "$1.50per pound. • Direct Jabour per unit of product 45 hour*$20 per hour. Variable manufacturing overhead $15 per direct labour hour The actual activity of the most recent month: 10,000 pounds direct material purchased at cost $17,000. • 9,504 pounds of direct material used to produce 1728 Units of product. 864 total direct labour hours were used and total payment was $18,144 Variable manufacturing overhead costs $13,824.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 3BE

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