Question
Direct Materials, 2 feet at $8.45 per foot...$16.90 Direct Labor, 1.4 direct labor hours at $16 per direct labor hour..................22.40 Variable over head. 1.4 direct
Direct Materials, 2 feet at $8.45 per foot...$16.90
Direct Labor, 1.4 direct labor hours at $16 per direct labor hour..................22.40
Variable over head. 1.4 direct labor hours at $2.50 per direct labor hour.......3.50
Fixed over head, 1.4 direct labor hours at $6 per direct labor hour...8.40
Standard Cost per UnitTotal..$51.20
Company manufactured 30,000 units during year.
Total of 64,000 feet of material was purchased during the year at $8.55 per foot.
Company worked 43,500 direct labor hours, during the year at direct labor cost of $15.80 per hour.
Denominator Activity level( direct labor hours) ..35,000
Budgeted fixed over head cost$210,000
Actual variable over head cost incurred.$108,000
Actual fixed over head cost incurred$211,800
4. The total of the variances would be:
| Direct materials variances: | ||
| Price variance.................................................................... | $ x,x00 | U |
| Quantity variance............................................................... | xx,x00 | U |
| Direct labor variances: | ||
| Rate variance..................................................................... | x,x00 | F |
| Efficiency variance............................................................. | xx,000 | U |
| Variable manufacturing overhead variances: | ||
| Rate variance..................................................................... | xx0 | F |
| Efficiency variance............................................................. | x,750 | U |
| Fixed manufacturing overhead variances: | ||
| Budget variance................................................................. | x,x00 | U |
| Volume variance................................................................. | xx,000 | F |
| Total of variances.................................................................. | $xx,x00 U or F |
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Auditing Humor And Other Oxymorons
Authors: Mr Mike Jacka
1st Edition
0991280903, 978-0991280902
