Question

Sarasota Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.

Costs and Production Data		Actual		Standard
Raw materials unit cost		$2.30		$2.15
Raw materials units used		11,400		10,500
Direct labor payroll		$172,840		$168,720
Direct labor hours worked		14,900		15,200
Manufacturing overhead incurred		$223,276
Manufacturing overhead applied				$226,176
Machine hours expected to be used at normal capacity				43,500
Budgeted fixed overhead for June				$73,950
Variable overhead rate per machine hour				$3.10
Fixed overhead rate per machine hour				$1.70

Overhead is applied on the basis of standard machine hours. 3.10 hours of machine time are required for each direct labor hour. The jobs were sold for $455,000. Selling and administrative expenses were $38,000. Assume that the amount of raw materials purchased equaled the amount used.

Answer 1

$3,645.00 U $1,710.00 U $1,935.00 U 7 Ques 1 8 Materials 9 (11400*2.3-10500*2.15) 0 Price Variance -1 (11400*2.3-11400*2.15) 2 Quantity variance 3 (11400*2.15)(10500*2.15) 4 5 Labor 6 (14900*(172840/14900)-(15200*(168720/15200) -7 Price variance -8 (14900*11.6)-(14900*11.1) 9 Quantity Variance -0 (15200*11.1) 14900*11.1) -1 2 Actual Overheads 3 Applied Overheads 4 (15200*3.1)*(3.1+1.7) 5 Overapplied overheads -6 $4,120 U 7450U 3330 F $223,276 $226,176 $2,900

$ 455,000 $ $ $ 22,575 168,720 226,176 S $ 417,471 37,529 88 Income statemnet 39 Sales revenue 40 Cost of goods sold 11 Materials -2 Labor 23 Overheads applied 14 Gross Profit 45 Variances 16 Material Price 27 Material Quantity 18 Labor Price 49 Labor Quantity 50 Overheads variance 51 Total Variance 52 Gross Profit 53 Selling and administrative expenses 54 Net Income 55 ununununun (1,710) (1,935) 17,450) 3,330 2,900 $ ՆԴ |ՆԴ |ՆԴ |ՆԴ (4,865) 32,664 38,000 (5,336)|