Question

Answer the next the questions using the following information: re was planning to product 900 tablets in March, but they ended up producing 920 tablets Company produces a lightweigh tablet that is page with college students. Filmore was standard costing. It standards of production March Master (sistic planning) budget, and a March Master Actual costs Standards incurred Direct Materials $5.40 per yard 24 100 $23,050 Direct Labor 7 per DLHS $ 20.250 $21,500 Variable MOH 52.00 per DLH S 2,700 Fixed MOH $5.50 per DLH $ 7.425 57.800 dinformation Manufacturing overhead (MOH) is applied to production on the basis of direct sbor hours (DLH). Selected relating to the month's production is given below: Actual direct labor-hours 1,400 DLHs The difference between standard and actual variable cost per tablet produced during March was $0.30 favorable 16 Variable MOH rate variance is $40 Favorable $714 Unfavorable S674 Unfavorable $714 Favorable E. None of the above 17 Direct labor wage efficiency variance is: $300 Unfavorable $550 Favorable $800 Favorable D. S500 Unfavorable E. None of the above Page 10 of 12

Answer 1

Answer 16
Correct Option is	A
Variable MOH rate variance	$                 420
Indicate	Favorable
Answer 17
Correct Option is	A
Direct labor wage efficiency variance is	$                 300
Indicate	Unfavorable
Answer 18
Correct Option is	D
Fixed Overhead is underapplied by	$                 210
Indicate	Underapplied

Standard hours for 900 tablets = 2700/2		1350
Standard hours per tablets = 1350/900		1.5
	Minus sign indicate unfavorable variance.
	Measure	direct labor hour
	Standard variable overhead rate per direct labor hour	$                2.00
2.00-0.30	Actual variable overhead rate per direct labor hour	$                1.70
1.5*920	Standard direct labor hours	1380
	Actual direct labor hours	1400
	Standard variable overhead rate per direct labor hour	2.00
Less	Actual variable overhead rate per direct labor hour	-1.70
	Difference	0.30
Multiply	Actual direct labor hours	1400
	Variable overhead rate variance	$                 420
	Indicate	Favorable

Standard hours for 900 tablets = 2700/2		1350
Standard hours per tablets = 1350/900		1.5
	Minus sign indicate unfavorable variance.
	Measure	Hour
20250/1350	Standard rate per Hour	$            15.00
21500/1400	Actual rate per Hour	$            15.36
1.5*920	Standard labor Hours	1380
	Actual labor Hours	1400
	Standard rate per Hour	15.00
Less	Actual rate per Hour	-15.36
	Difference	-0.36
Multiply	Actual labor Hours	1400
	Labor price (rate) variance	$             (500)
	Indicate	Unfavorable
	Standard labor Hours	1380
Less	Actual labor Hours	-1400
	Difference	-20
Multiply	Standard rate per Hour	15.00
	Labor efficiency variance	$             (300)
	Indicate	Unfavorable

Fixed overhead rate per unit (7425/900)	8.25
Actual Fixed Overheads	7800
Less: Applied Fixed Overhead (8.25*920)	-7590
Fixed Overhead is underapplied by	$                      210
Indicate	Underapplied