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Can you please help me explain how to solve this problem? Question 17 4 pts Marquez Motor Division produces a major subassembly for a 6.0
Can you please help me explain how to solve this problem?
Question 17 4 pts Marquez Motor Division produces a major subassembly for a 6.0 horsepower motor for lawn mowers. The plant uses a standard costing system for production costing and control. The standard cost sheet for the subassembly follows: Direct materials (6.0 lb. at $5.00) $ 30.00 Direct labor (1.6 hours @ $12.00) 19.20 Variable overhead (1.6 hours @ $10.00) 16.00 Fixed overhead (1.6 hours @ $6.00) 9.60 Total $ 74.80 During the year, Marquez's plant had the following actual production activity: Production of motors totaled 50,000 units A total of 260,000 pounds of raw materials was purchased at $4.70 per pound. There was no beginning inventory of materials. There were 10,000 pounds of material in ending inventory. The company used 82,000 direct labor hours at a total cost of $1,066,000. Actual fixed overhead totaled $556,000, and actual variable overhead totaled $860,000. Manufacturing overhead is applied on the basis of Standard Direct Labor Hours. Application rates were determined based on 60,000 units and 96,000 Direct Labor Hours, the plant's practical activity. [Select] V [Select] Ja. How much difference in NOI is due to the price of direct material being higher or lower than $5 per pound b. How much difference is NOI is due to using more or fewer than 6 pounds of direct material per subassembly? d. How much difference in NOI is due to paying more or less than $12 per direct labor hour? e. How much difference in NOI is due to using more or fewer than 1.6 DLH per subassembly? f. How much difference in NOI is due to spending more or less than $19.20 on direct labor per subassembly? [Select ] [Select]Step by Step Solution
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