Question

You have been given the following information about the production of Gamma Co:

Problem 12.40A a-h You have been given the following information about the production of Gamma Co., and are asked to provide the plant manager with information for a meeting with the vice-president of operations: Direct materials (5.00 kg at $3.00 per kilogram) Direct labour (0.50 hours at $4.00) Variable overhead (0.50 hours at $3.00 per hour) Fixed overhead (0.50 hours at $6 per hour) Standard Cost Card $15.00 2.00 1.50 3.00 $21.50 The following is a production report for the most recent period of operations: Volume Costs Direct materials Direct labour Variable overhead Fixed overhead Total Standard Cost $277,500 37,000 27,750 55,500 Price/ Rate $4,765 F 3,165 U Variances Spending/ Quantity/ Budget Efficiency $8,400 U 5,200 u $1,000 F 400 F $11,580 V