Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#14 Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 8.5 kilos $ 6.00

#14

Handerson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate
Direct materials 8.5 kilos $ 6.00 per kilo
Direct labor 0.4 hours $ 20.00 per hour
Variable overhead 0.4 hours $ 6.00 per hour

The company reported the following results concerning this product in August.

Actual output 3,200 units
Raw materials used in production 29,030 kilos
Purchases of raw materials 31,600 kilos
Actual direct labor-hours 1,160 hours
Actual cost of raw materials purchases $ 195,920
Actual direct labor cost $ 22,736
Actual variable overhead cost $ 7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor rate variance for August is:

Multiple Choice

$512 U

$512 F

$464 U

$464 F

#15

Kartman Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 6.5 pounds $ 7.00 per pound $ 45.50
Direct labor 0.6 hours $ 24.00 per hour $ 14.40
Variable overhead 0.6 hours $ 4.00 per hour $ 2.40

In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for June is:

Multiple Choice

$210 U

$210 F

$229 F

$229 U

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Q And A 2016

Authors: ACA Simplified

1st Edition

1523200464, 978-1523200467

More Books

Students also viewed these Accounting questions

Question

What are the advantages and limitations of product placement?

Answered: 1 week ago

Question

=+multiplicity 1). If A + 1, then |A| Answered: 1 week ago

Answered: 1 week ago