Finley Manufacturing Corporation accumulates the following data for jobs started and finished during the month of June
Question:
Finley Manufacturing Corporation accumulates the following data for jobs started and finished during the month of June 2016:
Overhead is applied based on standard machine hours. Three hours of machine time are required for each direct labour hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equalled the amount used.
Instructions
(a) Calculate all of the materials and labour variances.
(b) Calculate the total overhead variances.
(c) Calculate the overhead budget variance and the overhead volume variance.
(d) Prepare an income statement for management. Ignore income taxes.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly