Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex as follows Standard Quantity Standard Price

image text in transcribed

is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex as follows Standard Quantity Standard Price or Rate Direct materials Direct labor Variable manufacturing overhead 2.5 ounces 1.4 hours 1.4 hours $20.00 per ounce $12.50 per hour 3.50 per hour During November, the following activity was recorded related to the production of Fludex: Materials purchased: 12,000 ounces at a cost of $225,000 Materials used in production: 9,500 ounces Employees worked a total of 5,600 hours during November at $12 per hour. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. During November, variable manufacturing overhead totaled $18,200 During November, 3,750 units of Fludex were produced. (AQ x AP) (AQ x SP) (SQ x SP) DM Price Variance DL Rate Variance VOH Spending Variance DM Quantity Variance DL Efficiency Variance VOH Efficiency Variance Required: Show your calculations to receive credit for your answers. Answers without calculations will not receive full credit. a. Compute the direct materials price variance. b. Compute the direct materials quantity variance. c. Compute the direct labor rate variance. d. Compute the direct labor efficiency variance. e. Compute the variable overhead spending 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

Intermediate Accounting

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

11th edition

978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139

More Books

Students also viewed these Accounting questions