Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Input Quantity Standard Price Standard Standard Cost of Input Direct materials 24 yard $11 per yal = $264 Direct labor 2 hrs. X $12 per

image text in transcribedimage text in transcribedimage text in transcribed
Input Quantity Standard Price Standard Standard Cost of Input Direct materials 24 yard $11 per yal = $264 Direct labor 2 hrs. X $12 per hr. = $24 Variable MOH 2 hrs. $7 per hr. = $14 x Fixed MOH 2 hrs. $8 per hr. $16 Standard cost $318 Req. 2 Standard price per unit Actual price per unit Difference Multiply by: Actual quantity purchased DM price variance Actual direct materials used Standard quantity allowed Difference Multiply by: Standard direct materials cost per yard DM quantity variance Standard DL rate per hour Actual DL rate per hour Difference Multiply by: Actual direct labor hours DL rate variance Actual direct labor hours Standard direct labor hours allowed Difference Multiply by: Standard direct labor rate per hour DL efficiency variance Variable MOH rate variance: AH x (AR - SR) Variable MOH efficiency variance: SRX (AH - SHA) Fixed overhead budget variance: Actual fixed MOH - Budgeted fixed MOHConrad Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: Standards: Direct materials 24.0 yards per awning at $11.00 per yard Direct labor 2.0 hours per awning at $12.00 per hour Variable MOH standard rate $100 per direct labor hour Predetermined fixed MOH standard rate $8.00 per direct labor hour Total budgeted fixed MOH cost $21,700 Actual cost and operating data from the most recent month are as follows: Purchased 38,400 yards at a total cost of $399,360 Used 34.900 yards in producing 1,500 awnings Actual direct labor cost of $34,727 for a total of 2,870 hours Actual variable MOH $20,377 Actual fixed MOH $26,200 All manufacturing overhead is allocated on the basis of direct labor hours

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

Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

8th Edition

1119791057, 978-1119791058

More Books

Students also viewed these Accounting questions

Question

Sketch the graphs of the following functions. y = e x-1

Answered: 1 week ago

Question

Improving creative problem-solving ability.

Answered: 1 week ago