Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Concord Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the companys controller,

Concord Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the companys controller, Landon Concord, based on performing 2,100 core tests per month.

Standard Price Standard Quantity Standard Cost
Direct materials $0.50 per pound 5 pounds $2.50
Direct labor $10 per DLH 0.50 DLH 5.00
Variable overhead $9 per DLH 0.50 DLH 4.50
Fixed overhead $16 per DLH 1 DLH 16.00
Total standard cost per test $28.00

At the end of March, London reported the following operational results:
? The company actually performed 2,300 core tests during the month.
? 8,500 pounds of direct materials were purchased during the month at a total cost of $5,700.
? 6,300 pounds of direct materials were used to conduct the core tests.
? 860 direct labor hours were worked at a total cost of $9,750.
? Actual variable overhead was $7,900.
?

Actual fixed overhead was $15,700.

(g) Calculate the fixed overhead spending variance for March. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275. If the variance is zero, select "Not Applicable" and enter 0 for the amounts.)

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

IT Auditing And Application Controls For Small And Mid Sized Enterprises Revenue Expenditure Inventory Payroll And More

Authors: Jason Wood, William Brown, Harry Howe

1st Edition

1118072618, 9781118072615

More Books

Students also viewed these Accounting questions

Question

Understand the components of a business model of a business problem

Answered: 1 week ago

Question

Methods of Delivery Guidelines for

Answered: 1 week ago