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Q2)

Assembly department of Zahra Technologies had 200 units as work in process at the beginning of the month. These units were 45% complete. It has 300 units which are 65% complete at the end of the month. During the month, it completed and transferred 500 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method. How many units did Assembly department add during of the current month? Calculate direct materials cost per equivalent unit and conversion cost per equivalent unit. Zahra Corporation uses machine hour to allocate the overhead costs. The following overhead data pertain to May: Actual Budgeted Production 7,000 9,000 Machine hour per unit .35 3 Total Variable overhead costs $10,290 $10,800 Total Fixed overhead costs 26,000 $27,000 Calculate variable overhead spending variance