Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Big dog company ,a manufacturer of dog food, produces its product in 1000 bag batches. the standard cost of each batch consists of 8,000 pounds

Big dog company ,a manufacturer of dog food, produces its product in 1000 bag batches. the standard cost of each batch consists of 8,000 pounds of direct materials at $0.30 per pound, 48 direct labor hours at $8.50per hour, and a variable overhead cost( based on machine hours) at the rate of 10$ per hour with 16 machines per batch. the following variable costs were incurred for the last 1,000 bag batch produced: Direct Materials:8,300 pounds costing $2,378 were purchased and used. Direct Labor....45 hours costing $450 Variable overhead...$225 Machine hours used.... 18 hours A. determine the actual and standard variable cost per bag of dog food produced, separated into direct materials. direct labor, and variable overhead. B. For the last 1,000 bag batch determine the standard cost variances for the direct materials, direct labor, and variable overhead. C. explain the possible causes for each of the variances determined in B

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: Robert Libby, Patricia A Libby

7th Edition

0078111021, 9780078111020

More Books

Students also viewed these Accounting questions

Question

a sin(2x) x Let f(x)=2x+1 In(be)

Answered: 1 week ago