Question
Algonquin Adhesive Inc. is 40,000 direct labor hours and 20,000 units per month. A finished unit requires 6lb of materials at an estimated cost of
Algonquin Adhesive Inc. is 40,000 direct labor hours and 20,000 units per month. A finished unit requires 6lb of materials at an estimated cost of $2 per pound. The estimated cost of labor is $10.00 per hour. The plant estimates that overhead (all variable) for a month will be $40,000. During the month of March, the plant totaled 34,800 direct labor at an average rate of $9.50 an hour. The plant produce 18,000 units, using 105,000 lb of materials ar a cost of $2.04 per pound. Assuming that during the month of April the production report revealed the following information: Unit produced during the month 21,000 Direct labor hours for the month 41,000, materials purchased (in pounds) 125,000, Labor rate per hour $10.04, Materials cost per pound $1.98. Make journal entries to charge materials (use the materials purchase price variance) and labor to work in process.
I have calculated the Factory overhead for the standard the 1st and 2nd month. Fixed overhead= $4,000, 4000, 4000 Variable overhead =12,000, 11,100 and 12,300 Total =16,000, 15,100, 16,300
I need help with how to figure out the Budget Actual and Variance for month 1 and 2
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