Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I had this question in my quiz and I didn't know how to do it.. May you please show me the steps on how to
I had this question in my quiz and I didn't know how to do it.. May you please show me the steps on how to do this? So I can learn and use it for my final exam? Thanks.
Calculate the following:
(a) Direct materials price, usage, and budget variances
(b) Labour price, usage, and budget variances
(c) Variable overhead spending, quantity, and budget variances
(d) Fixed overhead spending and volume variances
View Policies Current Attempt in Progress Delta Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Direct materials (2 kg at $7.50 per kilogram) Direct labour (3 hours at $12 per hour) $15.00 per unit $36.00 per unit Budgeted overhead for the month of April (based on expected activity of 9,000 direct labour hours) is as follows: Variable overhead Fixed overhead Total overhead $29,250 19,500 $48,750 Overhead is applied based on labour hours. The average activity per month is 9,750 direct labour hours. The company calculates overhead rates based on average activity. Results for the month of April are as follows: Units produced Direct materials used (6,500 kg) Direct labour (9,500 hours) Variable overhead Fixed overhead Total costs 3,150 $44,850 116,375 28,500 20,000 $209,725 There was no beginning or ending work in process inventory. Calculate the direct materials price, usage, and budget variances. Direct materials price variance $ Direct materials usage variance $ Total materials budget variance $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