Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor,

image text in transcribed
image text in transcribed
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurres for the manufacture of 6,000 units of product were as follows: Standard Costs Actual Costs Direct materials 7,800 lb. at $4.60 Direct labor Factory overhead Rates per direct labor hr 7,700 lb. at $4.40 1,530 hrs. at $16.40 1,500 hrs. at $16.20 based on 100% of normal capacity of 1,560 direct labor hrs.: Variable cost, $2.90 Fixed cost,$4.60 $4,310 variable cost $7,176 fixed cost Each unit requires 0.25 hour of direct labor Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials price variance Direct materials quantity variance Total direct materials cost variance Favorable Unfavorable b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a number using a minus sign and an unfavorable variance as a positive number. Direct labor rate variance Direct labor time variance Total direct labor cost variance c. Determine variable factory overhead controliable variance, the fxed factory overhead volume variance, and total factory overhead cost variance. Su vanlable cost Fixed cost, $4.60 $7,176 fixed cost Each unit requires 0.25 hour of direct labor Required a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct materials price variance Direct materials quantity variance Total direct materials cost variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct labor rate variance Direct labor time variance Total direct labor cost variance c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost vanance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Variable factory overhead controlable variance Fixed factory overhead volume varlance Favorable Unfavorable Total factory overhead cost variance Previous 2 more Check My Work uses remaining. Check My Work

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_2

Step: 3

blur-text-image_3

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

The UCAS Guide To Getting Into Economics Finance And Accountancy At University

Authors: Ucas, Targetjobs.Co.UK

1st Edition

9781908077172

Students also viewed these Accounting questions

Question

Find the limit algebraically. Please show work thanks. 2

Answered: 1 week ago