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Can someone help me figure out this question? Thanks Under a contract with the provincial government, ChemLabs Inc. analyzes the chemical and bacterial composition of
Can someone help me figure out this question? Thanks
Under a contract with the provincial government, ChemLabs Inc. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Columbia. The contract price is $25.20 per test performed. The normal volume is 10,000 tests per month. Each test requires two testing kits, which have a standard price of $3.80 each. Direct labour to perform the test is 10 minutes at $22.80 per hour. At normal volume, the overhead costs are as follows: Total Variable overhead costs Indirect labour $18,000 Utilities 4,000 Labour-related costs 15,000 Laboratory maintenance 11,000 5 48,000 Fixed overhead costs Depreciation 28,000 Supervisor 30,000 Base utilities 9,000 Insurance 2,000 69,000 Total overhead 51 17,000 Overhead is allocated based on direct labour hours. During May 2016, 9,000 tests were performed. The records show the following actual costs and production data: Actlvlty Actual Cost Number of test kits purchased 19,000 570, 300 Number of test kits used 18,500 Direct labour 1,623 hours 32,646 Total overhead costs variable 45,200 Fixed 68, 500 Test kits are kept in inventory at standard cost. At the end of May, no tests were in process. Prepare a flexible overhead budget at 80% of the normal volume. Use S and commas. Use two decimal places for unit costs and no decimals for total costs. Prepare a exible overhead budget at 80% of the normal volume. Use S and commas. Use two decimal places for unit costs and no decimals for total costs. include a 0 in the dollars place if the unit cost is less than $1.00 - e. g., 50.55. Cost per Unit Total Cost Variable UH Indirect labour Utilities Labour-related casts Laboratory maintenance Total variable 0H Fixed OH Su pervisor Depreciation Base utilities Insurance Total Fixed 0H Total OH costs | Prepare a standard cost card ior materials and labour. Use two decimal places, 5 were appropriate, and afraclian fe.g. H8} for the stanclanal quantity of labour. Standards Quantity Price Cost Direct materials Direct labour (hr) Calculate the direct materials price and quantity variances and the direct labour rate and efficiency variances for May. Indicate whether they are favourable or unfavourable. Use 5, commas, no decimal piares. Enter U or F for unfavourable or favwmbl'e. The firstspace is for the doflar amount of the variance. The secwrd space is to indicate favourable or unfavourabfe. Direct materials price variance: Direct materials quantityr variance: Direct labour rate variance: Direct labour efficiency varianceStep by Step Solution
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