Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, I need help with an accounting problem. I think I am doing it right, but my answer is being graded as wrong. Mifflin Corporation
Hello, I need help with an accounting problem. I think I am doing it right, but my answer is being graded as "wrong."
Mifflin Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound $ 7.00 Direct labor-1.6 hours at $11.80 per hour 18.88 Variable manufacturing overhead 11.08 3.68 Fixed manufacturing overhead $40.64 Total standard cost per unit The predetermined manufacturing overhead rate is $9.23 per direct labor hour ($14.76 1.6). It was computed from a master manufacturing overhead budget based on normal production of 7,840 direct labor hours (4,900 units) for the month. The master budget showed total variable costs of $535,460 ($7.40 per hour) and total fixed overhead costs of $195,370 ($2.70 per hour). Actual costs for October in producing 4,810 units were as follows. Direct materials (4,990 pounds) $ 36,926 Direct labor (7,520 hours) 93,248 Variable overhead 54,497 18,903 Fixed overhead Total manufacturing costs $203,574 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Instructions Compute all of the materials, labor, and total overhead variances. (Round computations and final answers to 0 decimal places, e.g. 125.) Total materials variance $ Materials price variance $ Materials quantity variance $ Total labor variance $ Labor price variance $ Labor quantity variance $ Total overhead variance $ Click here if you would like to Show Work for this question My solution to the Total overhead variance To fond out Total overhead variance, we are required to calculate Actual Overhead that is given to us : 54,497+18,903=73,400 Applied Overhead is calculated by multiplying standard hours by standard per hour overhead cost (4,810 units*1.6 hours per unit)=>7,696 standard hours * $10.10 standard per hour labor OH cost => (Variable OH of $7.40 + fixed OH $2.70) =77,730 => That is: 73,400 of actual OH & 77,730 of applied OH => 4,330 F since actual OH came lower than applied OHStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started