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Gibson Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles. Amount of
Gibson Company manufactures molded candles that are finished by hand. The company developed the following standards for a new
line of drip candles.
Amount of direct materials per candle
Quantity labor per unit pounds
Quand $
Price direct labor per hour hours
Total budgeted fixed overhead $our
During Year Gibson planned to produce drip candles. Production lagged behind expectations, and it actually produced only
drip candles. At yearend, direct materials purchased and used amounted to pounds at a unit price of $ per pound. Direct labor costs were actually $ per hour and actual hours were worked to produce the drip candles. Overhead for the
year actually amounted to $ Overhead is applied to products using a predetermined overhead rate based on estimated units.
Required
a&b Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip
c&d Candle.
the actual cost per candle for direct materials, direct labor, overhead and also the total actual cost per candle.
e Compute the price and usage variances for direct materials and direct labor. f Compute the fixed cost spending and volume variances.
Complete this question by entering your answers in the tabs below.
Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle. Round your answers to decimal paras.
drip candle. Round your answers to decimal places.
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