The standard cost of making a single product is: 10kg @$2.00 per kg 5 hours @$5.00 per hour 20.00 25.00 Shours @3.00 per hour 15.00 $60.00 The factory overhead rate is based on a budgeted production of 10,000 units for the year, and budgeted fixed factory overhead of $50,000. Actual transactions and results for the year were: Direct Materials purchased 95,000kgs @ 2.05 per kg Direct Materials used 92,000 kgs Direct labour incurred 46,000 hours @ 4.90 per hour Factory Overhead incurred $140,000 Number of units produced 9,000 Calculate: (1) two variances for Direct material (i) two Variances for direct tabour (ii) two variances each for fixed and variable overheads Show all working out in determining the variances
The standard cost of making a single product is: 10kg @$2.00 per kg 5 hours @$5.00 per hour 20.00 25.00 Shours @3.00 per hour 15.00 $60.00 The factory overhead rate is based on a budgeted production of 10,000 units for the year, and budgeted fixed factory overhead of $50,000. Actual transactions and results for the year were: Direct Materials purchased 95,000kgs @ 2.05 per kg Direct Materials used 92,000 kgs Direct labour incurred 46,000 hours @ 4.90 per hour Factory Overhead incurred $140,000 Number of units produced 9,000 Calculate: (1) two variances for Direct material (i) two Variances for direct tabour (ii) two variances each for fixed and variable overheads Show all working out in determining the variances
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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