The standard cost card for the single product manufactured by Princess Company is given below: Last year,

Question:

The standard cost card for the single product manufactured by Princess Company is given below:

Standard Cost Card-Per Unit Direct materials, 2.1 metres at $6 per metre .. Direct labour, 0.5 direct labour-hours at $2


Last year, the company produced 6,800 units of product and worked 5,225 actual direct labour-hours. Manufacturing overhead cost is applied to production on the basis of direct labour-hours. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below:

Fixed Overhead Cost Actual Fixed Budgeted Applied to Overhead Cost Fixed Overhead Cost Work in Process $27,310 hours x $


Required:

1. What were the standard hours allowed for the year's production?

2. What was the amount of budgeted fixed overhead cost for the year?

3. What was the budget variance for the year?

4. What denominator activity level did the company use in setting the predetermined overhead rate for the year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781259275814

11th Canadian Edition

Authors: Ray H Garrison, Alan Webb, Theresa Libby

Question Posted: