Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How did you get actual rate Ouestion 2 At the beginning of 2019, Eigall Company had the following standard cost for one unit of its
How did you get actual rate
Ouestion 2 At the beginning of 2019, Eigall Company had the following standard cost for one unit of its product: Direct materials (5 kilograms @ $1.60) $8 Direct labour (2 hours @ $9) $18 Fixed Overhead (2 hours @ $2) Variable Overhead (2 hours @ $1.50) $3 Eigall computes its overhead rates using practical volume, which is 72,000 units. For 2019, the company had the following actual results: a. b. c. d. e. f. Production: 70,000 units Materials purchased: 372,000 kilograms at $1.55 Materials used: 369,000 kilograms Direct labour: 145,000 hours at $8.95 Fixed overhead: $240,000 Variable overhead: $220,000 Required: 1 .Compute the price and usage variances for direct materials. 2. Compute the rate and efficiency variances for direct labour. 3. Compute the fixed overhead spending and denominator variances. 4. Compute the variable overhead spending and efficiency variances.
Step 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