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Gail cleaners produces a commercial cleaning compound known as Carpex the direct materials and direct labor standards for one unit of Carpex follow: Direct materials:
Gail cleaners produces a commercial cleaning compound known as Carpex the direct materials and direct labor standards for one unit of Carpex follow:
Direct materials:
standard quantity or hours: kilograms
Standard Price: $ per kilogram Standard Cost: $
Direct labor:
standard quantity or hours : hour Standard Price: $ per hour
Standard Cost: $
Variable overhead:
standard quantity or hours : hour Standard Price: $ per hour
Standard Cost: $
The budgeted fixed overhead cost is $ per month.
The denominator activity level of the allocation base is direct laborhours.
During the recent month, the following activity was recorded:
A kilograms of material were purchased at $ per kilogram
B all of the material purchased was used to produce units of zoom
C a total of hours of direct labor time was recorded at a total labor cost of
D the variable overhead cost was $
and the fixed overhead cost was $ Required: compute the direct materials price and quantity variances for the month indicate the effect of each variance by selecting F for favourable, U for unfavourable and None for no effect or zero varianceMaterials price variance :Materials quantity variance
Compute the direct labor rate and efficiency variances for the month indicate the effect of each variance by selecting F for favourable, U for unfavourable and None for no effect or zero varianceLabor rate variance:Labor efficiency variance:
Compute the variable overhead spending and efficiency variances for the month indicate the effect of each variance by selecting F for favourable, U for unfavourable and None for no effect or zero variance Round efficiency variance to decimal placesVariable overhead spending variance:Variable overhead efficiency variance:
Compute the overhead budget and the volume variances for the month Round intermediate calculations to the nearest whole dollar amount. indicate the effect of each variance by selecting F for favourable, U for unfavourable and None for no effect or zero varianceFixed overhead budget variance:Fixed overhead volume variance: Compute the underapplied or overapplied overhead for the month Round intermediate calculations to the nearest whole dollar amount. indicate the effect of each variance by selecting F for favourable, U for unfavourable and None for no effect or zero varianceTotal variable overhead variance:Total fixed overhead variance:
The total overhead is
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