Answered step by step
Verified Expert Solution
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
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
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