Question

Standard Standard Price (1) Standard Quantity or Hours 2.30 pounds 1.ee hours 1.00 hours or Rate Inputs Direct materials Direct labor Variable manufacturing overhead (1) X (2) $39.10 $17.00 per pound $16.10 per hour $ 9.20 per hour Total standard cost per unit Direct materials Direct labor Variable manufacturing overhead Total Variance Reported Standard Price Quantity or Cost or Rate Efficiency 5782,000 $ 13,920 F $ 34,000 U $322,000 $ 4,200 $ 16,100 U $184,000 $4,700 F S "Applied to Work in Process during the period. The company's manufacturing overhead cost is applied to production on the basis of direct labor hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. Required: 1. How many units were produced last period? 2. How many pounds of direct material were purchased and used in production? 3. What was the actual cost per pound of material? (Round your answer to 2 decimal places.) 4. How many actual direct labor hours were worked during the period? 5. What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places) 6. How much actual variable manufacturing overhead cost was incurred during the period? 1. Number of units produced 2 Pounds of direct material purchased and used in production Actual cost per pound Actual direct labor hours Achatrate per direct labor hour TEAM ble manufacturing overhead cost

Answer 1

1) No of unit produced = 782000/39.10 = 20000 Unit

2) Material quantity variance = (Standard qty-actual qty)Standard price

-34000 = (20000*2.3*17-17X)

17X = 816000

X(actual qty) = 48000 Pound

3) Material price variance = (Standard price-actual price)actual qty

13920 = (17*48000-48000X)

48000X = 802080

X(actual cost per pound) = 16.71

4) Labor efficiency variance = (Standard hour-actual hour)Standard rate

-16100 = (20000*1*16.10-16.10X)

16.10X = 338100

X(Actual hour) = 21000 Hour

5) Labor rate variance = (Standard rate-actual rate)actual hour

-4200 = (16.10*21000-21000X)

21000X = 342300

X(actual rate) = 16.30

6) Variable overhead efficiency variance = (20000-21000)*9.2 = 9200 U

Actual variable overhead = 184000-4700+9200 = 188500