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Thc. Company is a manufacturing company that produces a single product. It has two direct-cost categories. applied to production on the basis of direct labor-hours. Following is the standard cost per unit for the Hookline Inc.: Input Cost per Output Unit Direct materials: 5 pounds at $8 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit $40 28 10 $78 The budgeted production and sales volume was 25,000 units. During July, Hookline Inc. produced 30,000 units. The f Materials purchased and used: 160,000 pounds at $7.5 per pound Direct labor: Variable manufacturing overhead occurred for the month: $280,500 55,000 hours used at a rate of $15 per hour Required: For the month of July, computer the following variances, indicating whether each is favorable(F) or unfavorable (U): 1. Direct materials price variance, based on purchases 2. Direct materials efficiency variance 3. Direct manufacturing labor price variance 4. Direct manufacturing labor efficiency variance 5. Variable manufacturing overhead rate variance 6. Variable manufacturing overhead spending variance

Thc. Company is a manufacturing company that produces a single product. It has two direct-cost categories. applied to production on the basis of direct labor-hours. Following is the standard cost per unit for the Hookline Inc.: Input Cost per Output Unit Direct materials: 5 pounds at $8 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit $40 28 10 $78 The budgeted production and sales volume was 25,000 units. During July, Hookline Inc. produced 30,000 units. The f Materials purchased and used: 160,000 pounds at $7.5 per pound Direct labor: Variable manufacturing overhead occurred for the month: $280,500 55,000 hours used at a rate of $15 per hour Required: For the month of July, computer the following variances, indicating whether each is favorable(F) or unfavorable (U): 1. Direct materials price variance, based on purchases 2. Direct materials efficiency variance 3. Direct manufacturing labor price variance 4. Direct manufacturing labor efficiency variance 5. Variable manufacturing overhead rate variance 6. Variable manufacturing overhead spending variance

Principles of Cost Accounting
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 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...
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Hookline Inc. Company is a manufacturing company that produces a single product. It has two direct-cost categories: applied to production on the basis of direct labor-hours. Following is the standard cost per unit for the Hookline Inc.: Input Cost per Output Unit Direct materials: 5 pounds at $8 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit $40 28 10 $78 The budgeted production and sales volume was 25,000 units. During July, Hookline Inc. produced 30,000 units. The fe Materials purchased and used: 160,000 pounds at $7.5 per pound Direct labor: Variable mamufacturing overhead occurred for the month: $280,500 55,000 hours used at a rate of $15 per hour Required: For the month of July, computer the following variances, indicating whether each is favorable(F) or unfavorable (U): 1. Direct materials price variance, based on purchases 2. Direct materials efficiency variance 3. Direct manufacturing labor price variance 4. Direct manufacturing labor efficiency variance 5. Variable manufacturing overhead rate variance 6. Variable manufacturing overhead spending variance For the toolbar, press ALT+F10 (PC) orALT+FN+F10 (Mac). | Arial BIUS Paragraph 14px EVE v A Y 田 田田 ABC (G)
Transcribed Image Text:Hookline Inc. Company is a manufacturing company that produces a single product. It has two direct-cost categories: applied to production on the basis of direct labor-hours. Following is the standard cost per unit for the Hookline Inc.: Input Cost per Output Unit Direct materials: 5 pounds at $8 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit $40 28 10 $78 The budgeted production and sales volume was 25,000 units. During July, Hookline Inc. produced 30,000 units. The fe Materials purchased and used: 160,000 pounds at $7.5 per pound Direct labor: Variable mamufacturing overhead occurred for the month: $280,500 55,000 hours used at a rate of $15 per hour Required: For the month of July, computer the following variances, indicating whether each is favorable(F) or unfavorable (U): 1. Direct materials price variance, based on purchases 2. Direct materials efficiency variance 3. Direct manufacturing labor price variance 4. Direct manufacturing labor efficiency variance 5. Variable manufacturing overhead rate variance 6. Variable manufacturing overhead spending variance For the toolbar, press ALT+F10 (PC) orALT+FN+F10 (Mac). | Arial BIUS Paragraph 14px EVE v A Y 田 田田 ABC (G)
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