Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need to be able to understand how to calculate the answers so that I can appropriately reference my cells. Gourmet, Inc. produces containers of

image text in transcribed

I need to be able to understand how to calculate the answers so that I can appropriately reference my cells.

Gourmet, Inc. produces containers of frozen food. During October the company had the following actual production and costs Actual Containers produced in October Variable Overhead Fixed Overhead Direct Labor cost Actual material purchased Actual Material pounds used 725 $5,500 $14,000 $75,600 Which is $33,000 Which is 4,000 Direct labor hours 15,000 pounds 14,900 pounds Overhead is budgeted and applied using direct-labor hours. Standard cost and annual budget information are as follows Standard cost per container 5 hours Direct Labor Direct Material $18 $2 $90 $40 at 20 pounds at Direct labor 5 hours Direct labor 5 hours Variable overhead at $1.50 $7.50 $3 Fixed Overhead Total at $152.50 Budgeted Monthly Fixed Overhead $12,500 Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cell reference or showing your calculation to the side 1. Calculate the direct materials price and quantity variance Materials price variance Materials Quantity variance 2. Calculate the direct labor rate and efficiency variances Labor rate variance Labor Efficiency variance 3. Calculate the variable overhead spending and efficiency variances Variable overhead spending variance Variable overhead efficiency variance 4. Calculate the fixed overhead budget variance Fixed overhead budget variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A User Perspective

Authors: Robert E. Hoskin, Maureen R. Fizzell, Donald C. Cherry

4th Canadian Edition

0470834455, 978-0470834459

More Books

Students also viewed these Accounting questions

Question

What made you decide on this subfield of psychology?

Answered: 1 week ago