Question
last year lopez industries, inc, researched and perfected a cure for the common cold called cold gone, the product sells for $28.00 per package, each
last year lopez industries, inc, researched and perfected a cure for the common cold called cold gone, the product sells for $28.00 per package, each of which contains 5 tablets. Standard unit costs for this product were developed las last year for use this year, Per package, the dtandard unit cost were as follows: chemical ingredients, 6 ounces at $1.00 per ounce; packaging, $1.20; direct labor 0.8 hours at $14,00 per hour; standard variable over head, $400 per direct labor hour;and standard fixed overhead,$6.40 per direct labor hour. Normal capacity is 46,875 units per week.
Actual packages in the frst week of april produced 50,00 packages but used materials for 50,200 packages costing $60,240. It also used 305,000 ounces of chemical ingredients costing $292,800. The cost of labor for th week was $579,600; direct labor hours were 40,250. total variable overhead was $161,100, and total fixed overhead was $242,000. Budgeted fixed overhead for the week was $240,000.
1. Compute the variences for the first week of april
A) All direct materials price variences
B)all direct materials quantity variences
c) the direct labor rate varience
d)the direct labor efficiency varience
e)the variable overhead spending varience
f)the variable overhead efficiency varience
g)the fixed overhed bufget varience
h)the fixed overhead volume varience
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