Question
A company has the following information for Job Alpha during July: Units produced 231 Actual materials used (and purchased) 1, 383 lbs. Actual materials cost
A company has the following information for Job Alpha during July:
Units produced | 231 |
Actual materials used (and purchased) | 1, 383 lbs. |
Actual materials cost | $5.30 per pound |
Actual labor hours incurred | 606 |
Actual labor rate | $13.00 per hour |
The company applies manufacturing overhead to jobs based on direct labor hours.
Additional information for the company in July is as follows:
Total estimated labor hours | 1,950 |
Standard materials per unit | 6.3 lbs. |
Standard materials cost | $5.00 per lb. |
Standard labor hours per unit | $2.50 |
Standard labor rate | $13.50 per hour |
Standard variable overhead | $2.70 per labor hour |
Standard fixed overhead | $1.80 per labor hour |
a. Calculate the companys total estimated overhead for July (3 points):
b. If the company uses a normal costing system, calculate the costs incurred by Job Alpha in July (6 points):
c. If the company uses a standard costing system, calculate the costs incurred by Job Alpha in July (6 points)
d. Calculate the materials flexible budget for Job Alpha in July (4 points)
e. Calculate the direct materials flexible budget variance for Job Alpha in July (5 points):
f. Calculate the July materials price variance for Job Alpha (5 points):
g. Calculate the July materials quantity variance for Job Alpha (6 points):
h. Calculate the July direct labor flexible budget for Job Alpha (4 points)
i. Calculate the July direct labor flexible budget variance for Job Alpha (5 points):
j. Calculate the July labor rate variance for Job Alpha (5 points):
k. Calculate the labor efficiency variance for Job Alpha in July (6 points):
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