a] | Direct material price variance = Actual quantity*(Actual price-Standard price) = 36000*(13-12) = | 36000 | Unfavorable |
Direct material efficiency variance = Standard price*(Actual quantity-Standard quantity) = 12*(4000*9-4000*10) = | 48000 | Favorable | |
Direct labor price [rate] = Actual hours*(Actual rate-Standard rate) = 4000*5*(18-20) = | 40000 | Favorable | |
Direct labor efficiency variance = Standard rate*(Actual hours-Standard hours) = 20*(4000*5-4000*4) = | 80000 | Unfavorable | |
b] | Variable overhead spending variance = Actual variable overhead-Actual hours*Standard variable overhead rate = 24000-4000*5*1= | 4000 | Unfavorable |
Variable overhead efficiency variance = Standard variable overhead rate*(Actual hours-Standard hours) = 1*(4000*5-4000*4) = | 4000 | Unfavorable | |
Fixed overhead expenditure variance = Actual fixed overhead-Budgeted fixed overhead = 48000-50000 = | 2000 | Favorable | |
Fixed overhead volume variance = Standard fixed overhead rate*(Budgeted hours-Standard hours) = 10*(20000-4000*4) = | 40000 | Unfavorable | |
Fixed overhead efficiency variance = Standard fixed overhead rate*(Actual hours-Standard hours) = 10*(20000-16000) = | 40000 | Unfavorable |
2. Suppose Company A plans to produce and sell 5.000 units of a specific product. •...
Lasser Company plans to produce 16,000 units next period at a denominator activity of 48,000 direct labor-hours. The direct labor wage rate is $12.00 per hour. The company's standards allow 2 yards of direct materials for each unit of product; the material costs $8.30 per yard. The company's budget includes variable manufacturing overhead cost of $1.60 per direct labor-hour and fixed manufacturing overhead of $292,800 per period. Required: 1. Using 48,000 direct labor-hours as the denominator activity, compute the predetermined...
Lasser Company plans to produce 14,000 units next period at a denominator activity of 28,000 direct labor-hours. The direct labor wage rate is $12.00 per hour. The company's standards allow 2 yards of direct materials for each unit of product; the material costs $9.50 per yard. The company's budget includes variable manufacturing overhead cost of $2.10 per direct labor-hour and fixed manufacturing overhead of $145,600 per period. Required: 1. Using 28,000 direct labor-hours as the denominator activity, compute the predetermined...
Lasser Company plans to produce 22,000 units next period at a denominator activity of 44,000 direct labor-hours. The direct labor wage rate is $12.00 per hour. The company's standards allow 2 yards of direct materials for each unit of product; the material costs $8.50 per yard. The company's budget includes variable manufacturing overhead cost of $2.00 per direct labor-hour and fixed manufacturing overhead of $215,600 per period. Required: 1. Using 44,000 direct labor-hours as the denominator activity, compute the predetermined...
Lasser Company plans to produce 29,000 units next period at a denominator activity of 87,000 direct labor-hours. The direct labor wage rate is $12.00 per hour. The company's standards allow 2 yards of direct materials for each unit of product; the material costs $7.90 per yard. The company's budget includes variable manufacturing overhead cost of $2.00 per direct labor-hour and fixed manufacturing overhead of $487,200 per period. Required: 1. Using 87,000 direct labor-hours as the denominator activity, compute the predetermined...
Lasser Company plans to produce 16,000 units next period at a denominator activity of 32,000 direct labor-hours. The direct labor wage rate is $12.00 per hour. The company's standards allow 2 yards of direct materials for each unit of product; the material costs $7.80 per yard. The company's budget includes variable manufacturing overhead cost of $2.30 per direct labor-hour and fixed manufacturing overhead of $156,800 per period. Required: 1. Using 32,000 direct labor-hours as the denominator activity, compute the predetermined...
Lasser Company plans to produce 23,000 units next period at a
denominator activity of 69,000 direct labor-hours. The direct labor
wage rate is $12.00 per hour. The company's standards allow 2 yards
of direct materials for each unit of product; the material costs
$7.70 per yard. The company's budget includes variable
manufacturing overhead cost of $1.90 per direct labor-hour and
fixed manufacturing overhead of $372,600 per period.
Required:
1. Using 69,000 direct labor-hours as the denominator activity,
compute the predetermined...
The estimated unit costs for a company to produce and sell a product at a level of 13,600 units per month are a Cost Item Estimated Unit Cost $ 35 Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses What are the estimated variable costs per unit?
Data for Adelphia Inc. for May 2018 is provided below. Adelphia expected to produce and sell 11,000 units of product, each requiring 0.67 pounds of aluminum at a cost of $30.41 per pound. Adelphia produced and sold 11,400 units of product and used 8,200 pounds at a cost of $248,700. Adelphia expected that each unit of product would require 1.2 direct labor hours at a cost of $10.25 per hour. Actual direct labor cost was $10.59 per hour, for a...
Company A manufactures one product, ABC. Company A uses budgets and standards in their functions, and uses these standards to get their budgeted cost per unit. Here is the information for the budgeted variable costs per unit. Raw Material: 3 lbs at $4 per pound $12 Direct Labor: .75 Direct labor hours at $20 per hour $15 Variable Overhead: .75 direct labor hours at $12 per hour $9 Total variable budgeted (standard) cost for ABC $36 When determining the direct...
ABC Company has set the following standards in order to produce one unit of its single product: standard quantity standard price direct materials 2.7 yards ?? per yard direct labor 2 hours $14 per hour variable overhead 2 hours ?? per hour During August, ABC Company spent $133,770 to purchase direct materials and had direct labor totaling $189,440. During August, ABC Company used 16,000 yards of direct materials in the production of units. ABC had 2,500 yards of materials in...