Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Anton Company manufactures wooden magazine stands. An accountant for Anton just completed the variance report for the current month. After printing the report, his

2. Anton Company manufactures wooden magazine stands. An accountant for Anton just completed the variance report for the current month. After printing the report, his computers hard drive crashed, effectively destroying most of the actual results for the month. All that the accountant remembers is that actual production was 220 stands and that all materials purchased were used in production. The following information is also available: Current Month: Budgeted Amounts Budgeted production: 200 magazine stands Direct materials: Wood Usage 3 square feet per stand Price $ 0.25 per square foot Direct labor: Usage 0.5 hours per stand Rate $ 10 per hour Variable overhead (allocated based on direct labor hours): Rate per labor hour $ 4 Rate per stand $ 2 Fixed overhead (allocated based on direct labor hours): Rate per labor hour $ 6 Rate per stand $ 3 Current Month: Variances Direct materials price variance $ 33 Unfavorable Direct materials quantity variance 0 Direct labor rate variance $ 231 Favorable Direct labor efficiency variance $ 550 Unfavorable Overhead volume variance $ 60 Favorable Overhead spending variance $ 210 Unfavorable Required: Using the budget for the current month and the variance report, construct the following items: a. What was the actual purchase price per square foot of wood? Note: Round your answer to 2 decimal places. b. How many labor hours did it actually take to produce each stand? Note: Round your answer to 2 decimal places. c. What was the actual wage rate paid per hour? Note: Round your answer to 2 decimal places. d. What was actual total overhead for the month

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

Financial Reporting And Auditing In Sovereign Operations Technical Guidance Note

Authors: Asian Development Bank

1st Edition

9292698192, 978-9292698195

More Books

Students also viewed these Accounting questions

Question

3. Explain the forces that influence how people handle conflict

Answered: 1 week ago