Bare with the picture pls thankyou in advance <3 Case 2Pest Away Company manufactures a product effective in controlling beetles. Thecompany uses a standard cost system and a flexible budget. Standard cost of a gallonis as follows:Direct material:2 quarts of A4 quarts of BTotal direct material$1416$30 Direct labor:2 hours16Manufacturing overhead12$58TotalThe flexible budget system provides for $50,000 of fixed overhead at normal capacity of10,000 direct labor hours. Variable overhead is projected at $1 per direct labor hour.Actual results for the period indicated the following:Production:5,000 gallonsDirectmaterial:12,000 quarts purchased at a cost of $7.20/quart; 10,500quarts used20,000 quarts purchased at a cost of $3.90/quart; 19,800quarts usedABDirect labor: 9,800 hours worked at a cost of $79.380$48,10021.000$69.100Overhead:FixedVariableTotal overheadRequired:1. What is the application rate per direct labor hour, the total overheadcost equation, the standard quantity for each material, and thestandard hours?2. Compute the followingvariances:a. Total material price varianceb. Total material quantity variancec. Labor rate varianced. Labor efficiency variancee. MOH volume variancef. MOH efficiency varianceg. MOH spending variance, both fixed and variable

Required: 1. What is the application rate per direct labor hour, the total overhead cost equation, the standard quantity for each material, and the standard hours? 2. Compute the following variances: a. Total material price variance b. Total material quantity variance c. Labor rate variance d. Labor efficiency variance e. MOH volume variance f. MOH efficiency variance g. MOH spending variance, both fixed and variable

Required: 1. What is the application rate per direct labor hour, the total overhead cost equation, the standard quantity for each material, and the standard hours? 2. Compute the following variances: a. Total material price variance b. Total material quantity variance c. Labor rate variance d. Labor efficiency variance e. MOH volume variance f. MOH efficiency variance g. MOH spending variance, both fixed and variable

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 25E: Jasmine Companys expected sales were 2,000 units at 100 per unit. During 20x1, it had actual sales...

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