Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed
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 fool: Direct labor: Usage 0.5 hours per stand Rate 3 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 3 Current Month: Variances Direct materials price variance 3 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 mm-m Required: Using the budget for the current month and the variance report, construct the following items. a. What was the actual purchase price per square foot of wood? (Round your answer to 2 decimal places.) 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.) :1. What was actual total overhead for the month? . Actual price per square foot . Actual hours per unit Actual rate 9 per hour 9- Actual overhead costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

12th Edition

0538478519, 9780538478519

More Books

Students also viewed these Accounting questions

Question

In problem, solve each inequality. x 2 + 2x + 4 > 0

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago