Anton Company manufactures wooden magazine stands. An accountant for Anton just completed the variance report for the current month. After printing the report, his computer's 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 |
Price | $ | 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 |
|
Using the budget for the current month and the variance report, construct the items below. |
a. | What was the actual purchase price per square foot of wood? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
b. | How many labor hours did it actually take to produce each stand? (Round your answer to 2 decimal places.) |
c. | What was the actual wage rate paid per hour? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
d. | What was actual total overhead for the month? |