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Griffen Company makes plpe using metal. The company uses a standard costing system. Varlable overhead Is allocated on the basis of direct materlal usage (pounds).
Griffen Company makes plpe using metal. The company uses a standard costing system. Varlable overhead Is allocated on the basis of direct materlal usage (pounds). Overhead Is allocated to units based on expected production of 12,600 units. Griffen maintains a materlals Inventory, so the amount of materlal used is not necessarlly the same as the amount of materlal purchased in any one month. The standard cost sheet for a unit of pipe follows. DirectmaterialDirectlaborVariableoverheadFixedoverhead6pounds2hours6pounds@$5$25$2$30.0050.0012.0020.00$112.00 August financial results show that the average purchase price of metal was $5.30 per pound. The purchase price varlance $34,704 unfavorable. The varlable overhead efficlency varlance was 8,600 unfavorable. Good output produced totaled 15,600 units. Required: a. How many pounds of metal were purchased In August? (Do not round Intermeclate calculations.) b. What was the direct materlal efficlency varlance in August? (Do not round Intermedlate calculatlons. Indlcate the effect of each varlance by selectling "F" for favorable, or "U" for unfevorable. If there is no effect, do not select elther option.) c. How many pounds of metal were used in August? (Do not round Intermedlate calculatlons.) \begin{tabular}{|l|l|l|l|} \hline a. & Metals purchased & & pounds \\ \hline b. & Efficiency variance & & \\ \hline c. & Metals used & & pounds \\ \hline \end{tabular}
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