Cyber Text

BuBHEwn 5 6 Standard Job Order Costing - 7 Variance Analysis 8 9 10 11 12 Special order lamps are manufactured in division S. Because of the precise nature of the process a 14 standard cost system has been developed. The following standards are used for the special orders: 15 16 17 18 Standards 20 Lamp Kits $16.000000 per lamp 21 Direct Labor 2.400000 per lamp (4 lamps/hr.) 22 Variable Overhead 0.250000 per lamp (4 lamps/hr.) 23 " Fixed Overhead 10.000000 per lamp 24 Total $28.650000 26 27 FO verhead is based expected production of 4,010 customized lamps each month. 28 29 To keep records of the actual cost of a jab, a Job Order Cost System has been developed. Entries 30 are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) 32 while entries are made to the accounting system at standard. Variance analysis is used to analyze the 33 differences 34 35 36 38 Job Order Costing Section 39 40 On January 1, 20x2. Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The 41 job called for 4,000 customized lamps. The following set of transactions occurred from 42 January 5 until the job was completed: 44 45 46 5-Jan Purchased 4,175 Lamp Kits @ $16.55 per kit 47 9-Jan 4.200 sets of Lamp Kits were requisitioned. 48 17-Jan Payrol of 570 Direct Labor Hours $9.65 per hout. 50 30 Jan Payrol of 620 Direct Labor Hours $9.90 per hour. 51 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were 52 used or scrapped 53 54 56 57 58 59 Month End Overhead Information 60 Actual Variable Overhead $ 1,118.60 62 Actual Fixed Overhead $39,623.45 64 65 56 = A1 A2 A3 A4 A5 A6 A7 A Calculation Mode: Automatic Workbook Statistics