Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Compute: Material variances Labor variances Overhead variances A. 2-way analysis B. 3-way analysis C. 4-way analysis Eagle's Wing Corporation has the following costs data on

image text in transcribed

Compute:

  1. Material variances
  2. Labor variances
  3. Overhead variances

A. 2-way analysis

B. 3-way analysis

C. 4-way analysis

Eagle's Wing Corporation has the following costs data on October 20xx i Standard variable costs per unit Direct materials: 2 kg at P4.00 P 8.00 Direct labor, 0.10 hours at P60 6.00 Variable manufacturing overhead, 0.10 hrs at P20 2.00 P 16.00 ii. Fixed manufacturing overhead cost Monthly budget, for 40,000 units or 4,000 hours P320,000.00 iii. Actual production costs Direct materials purchased: 200,000 kg at P4.80 +960,000.00 Direct materials used; 110,000 kg at P4.80 528,000.00 Direct labor, 6,000 hours at P56 336,000.00 Manufacturing overhead 444,000.00 iv. Actual units produced; 50,000 units Required: Using formula approach, compute the following: 1. Material variances 2. Labor variances 3. Overhead variances a. 2-way analysis b. 3-way analysis c. 4-way analysis

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

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

8th Edition

9781439044612, 1439044619, 978-1111626822

More Books

Students also viewed these Accounting questions

Question

2 What participation techniques are used?

Answered: 1 week ago