5 61) Bumpy Company set the following standard unit costs for its single product. 7 8...
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5 61) Bumpy Company set the following standard unit costs for its single product. 7 8 Direct materials (5 lbs. @ $2.25 per lb.) $ Direct labor (0.3 hrs. @ $15 per hr.) 11.25 4.50 9 Factory OH-variable (0.3 hrs. @ $10 per hr.) 10 Factory OH-fixed (0.3 hrs. @ $14 per hr.) 11 Total Standard Cost $ 22.95 12 3.00 10+14=24x125,000 = 3000000-3160000=160000 4.20 it would be UF 13 14 15 16 During the current quarter, the company operated at 70 of capacity and produced 420,000 units of product; direct labor hours worked were 125,000. 17 18 Actual costs incurred during the current quarter follow: 19 Direct materials (2,000,000 lbs. @ $2.50 per lb.) $ 5,000,000 20 Direct labor (125,000 hrs. @ $15.50) $ 1,937,500 21 Fixed factory overhead costs. 22 Variable factory overhead costs 1,960,000 1,200,000 23 Total Actual Costs $ 10,097,500 actual oh 3160000 94 25 26 27 28 1) Compute the direct materials price, quantity and total variances. For each variance, state whether favorable or unfavorable. 29 2) Compute the direct labor rate, efficiency and total variances. For each variance, state whether favorable or unfavorable. 30 3) Compute the total overhead variance and state whether it is favorable or unfavorable. 31 32 33 34 Check: (1) Materials variances: Price, $500,000-U (2) Labor variances: Efficiency, $15,000-F 5 61) Bumpy Company set the following standard unit costs for its single product. 7 8 Direct materials (5 lbs. @ $2.25 per lb.) $ Direct labor (0.3 hrs. @ $15 per hr.) 11.25 4.50 9 Factory OH-variable (0.3 hrs. @ $10 per hr.) 10 Factory OH-fixed (0.3 hrs. @ $14 per hr.) 11 Total Standard Cost $ 22.95 12 3.00 10+14=24x125,000 = 3000000-3160000=160000 4.20 it would be UF 13 14 15 16 During the current quarter, the company operated at 70 of capacity and produced 420,000 units of product; direct labor hours worked were 125,000. 17 18 Actual costs incurred during the current quarter follow: 19 Direct materials (2,000,000 lbs. @ $2.50 per lb.) $ 5,000,000 20 Direct labor (125,000 hrs. @ $15.50) $ 1,937,500 21 Fixed factory overhead costs. 22 Variable factory overhead costs 1,960,000 1,200,000 23 Total Actual Costs $ 10,097,500 actual oh 3160000 94 25 26 27 28 1) Compute the direct materials price, quantity and total variances. For each variance, state whether favorable or unfavorable. 29 2) Compute the direct labor rate, efficiency and total variances. For each variance, state whether favorable or unfavorable. 30 3) Compute the total overhead variance and state whether it is favorable or unfavorable. 31 32 33 34 Check: (1) Materials variances: Price, $500,000-U (2) Labor variances: Efficiency, $15,000-F
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Answer lets break down the variances for Bumpy Company 1 Direct Materials Variances Price Variance F... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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