Question
COB Candy Products Corporation manufactures gourmet candies. The cost standards developed by COB appear below. Manufacturing overhead at COB is applied to production on the
COB Candy Products Corporation manufactures gourmet candies. The cost standards developed by COB appear below. Manufacturing overhead at COB is applied to production on the basis of standard direct labor hours:
Standard quantity per unit of product | Standard cost per kilogram or hour | Standard cost per unit of product | |
Direct materials | 0.75 kilogram | 350.00 | 262.50 |
Direct labor | 1.4 hours | 65.00 | 78.00 |
Variable overhead | 1.4 hours | 16.25 | 19.50 |
The standards were based on an expected annual volume of 75,000 products.
The actual results for last year were as follows:
Number of candy products produced | 31,500 |
Kilograms of direct materials purchased | 23,600 |
Kilograms of direct materials used in production | 23,575 |
Direct labor-hours incurred | 44,000 |
Direct labor cost per hour | 65.25 |
Variable overhead cost per hour | 16.00 |
Total cost of direct materials purchased | 8,272,750 |
1. The materials quantity or usage variance amounts to ____________________.
2. The variable overhead spending variance amounts to ____________________.
3. The materials spending variance amounts to ____________________. 4. The labor rate variance amounts to ____________________.
5. The labor spending amounts to ____________________.
6. The raw materials inventory at standard cost amounts to __________________.
7. The variable overhead efficiency variance amounts to ____________________.
8. The variable overhead rate variance amounts to ____________________.
Indicate in your solution sheet whether it is FAVORABLE or UNFAVORABLE
For uniformity of answers, if the variance is FAVORABLE encode a minus sign before the numerical answer. Do not place spaces.
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