Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Leung Corporation manufactures a single product. The standard cost per unit of product is as follows. The master manufacturing overhead budget for the month based

image text in transcribed
Leung Corporation manufactures a single product. The standard cost per unit of product is as follows. The master manufacturing overhead budget for the month based on normal productive capacity of 20,000 direct labor hours ( 10,000 units) shows total variable costs of $80,000 ( $4 per labor hour) and total fixed costs of $60,000 ( $3 per labor hour). Normal productive capacity is 20,000 direct labor hours. Overhead is applied on the basis of direct labor hours. Actual costs for November in producing 9,800 units were as follows. The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. (1) Compute (a) total material variance, (b) price variance, and (c) quantity variance (show calculations with formula) (2) Compute (a) total labor variance, (b) labor price variance, (c) labor quantity variance (show calculations with formula) [Note: For this math, students must show the calculation to get points. Only writing/providing answers will not be graded]

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 Crime Investigation And Control

Authors: K. H. Spencer Pickett, Jennifer M. Pickett

1st Edition

0471203351, 9780471203353

More Books

Students also viewed these Accounting questions