Question
Global Harvest manufactured 15,000 boat fenders during 2017, using 122,000 square feet of vinyl purchased at $1.15 per square foot. Production required 470 direct labor
Global Harvest manufactured 15,000 boat fenders during 2017, using 122,000 square feet of vinyl purchased at $1.15 per square foot. Production required 470 direct labor hours that cost $14.00 per hour. The direct materials standard was 7.5 square feet of vinyl per fender, at a standard cost of $1.30 per square foot. The labor standard was 0.03 direct labor hour per fender, at a standard cost of $12.50 per hour. And, additional information about budgeted overhead is summarized below.
Static budget variable overhead : | $5,500 |
Static budget fixed overhead : | $11,000 |
Static budget direct labor hours : | 550 Hours |
Actual variable overhead of 2014 | $4,950 |
Requirement 1: Compute the cost (price) and efficiency (quantity) variance for direct materials.
Requirement 2: Compute the cost (price) and efficiency (quantity) variance for direct labor.
Requirement 3: Compute the budgeted allocation rates for variable overhead and fixed overhead, and compute cost (price) and efficiency (quantity) variance for variable overhead by using budgeted allocation rate.
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