Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Class Quest, Inc. uses a standard cost system for its product, Fruta. For the month of June, the company expects to produce 10,000 units of

Class Quest, Inc. uses a standard cost system for its product, Fruta. For the month of June, the company expects to produce 10,000 units of Fruta using 20,000 pounds of material, and 4,000 direct labor hours. The standard price of materials is $10.00 per pound while the labor standard rate is $15.00 per hour. Variable overhead is assigned to the product on the basis of direct labor hours at the rate of $5.00 per direct labor hour.

During June, the company recorded this activity related to production of Fruta:

  1. The company actually produced 11,000 units of Fruta during June.
  2. Materials of X pounds were purchased at a cost of $157,500. There were 6,000 pounds in beginning inventory of materials; 24,000 pounds were used in production; and at the end of the month, 3,000 pounds of material remained in ending inventory.
  3. The company used 4,750 hours of direct labor and paid a total of $59,375.
  4. Actual variable manufacturing overhead costs during June totaled $23,750.

REQUIRED 1: Compute the following variances

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

Montgomery Auditing Continuing Professional Education

Authors: Patrick J. McDonnell, Barry N. Winograd, James S. Gerson, Henry R. Jaenicke, Vincent M. O'Reilly

12th Edition

0471346055, 978-0471346050

More Books

Students also viewed these Accounting questions

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago