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McCallum Company had the following standard cost sheet for one of its products: Direct materials (4 lbs. @ $2.80) 5.25 LBS @ $ 3.70 =
McCallum Company had the following standard cost sheet for one of its products: Direct materials (4 lbs. @ $2.80) 5.25 LBS @ $ 3.70 = $ 19.43 Direct labor (2 hrs. @ $18.00) 2.25 DLH @ $ 23.75 = $ 53.44 FOH (2 hrs. @ $5.20) 2.25 DLH @ $ 3.75 = $ 8.44 VOH (2 hrs. @ $0.70) 2.25 DLH @ $ 0.95 = $ 2.14 Standard cost per unit $ 83.44 McCallum computes overhead rates using planned annual volume, which is: 300,000 Units The actual results for the year are as follows: (a) Production 250,000 Units (b) Direct labor 575,000 Hours 18.10 Per Hour (c) Fixed Overhead $ 2,500,000 (d) Variable Overhead $ 550,000 1) Compute the total variable overhead variance and the separate variable overhead spending and efficiency variances. 2) Compute the total fixed overhead variance and the separate fixed overhead spending and volume variances.
McCallum Company had the following standard cost sheet for one of its products: | ||||||||
Direct materials (4 lbs. @ $2.80) | 5.25 | LBS @ | $ 3.70 | = | $ 19.43 | |||
Direct labor (2 hrs. @ $18.00) | 2.25 | DLH @ | $ 23.75 | = | $ 53.44 | |||
FOH (2 hrs. @ $5.20) | 2.25 | DLH @ | $ 3.75 | = | $ 8.44 | |||
VOH (2 hrs. @ $0.70) | 2.25 | DLH @ | $ 0.95 | = | $ 2.14 | |||
Standard cost per unit | $ 83.44 | |||||||
McCallum computes overhead rates using planned annual volume, which is: | 300,000 | Units | ||||||
The actual results for the year are as follows: | ||||||||
(a) Production | 250,000 | Units | ||||||
(b) Direct labor | 575,000 | Hours | 18.10 | Per Hour | ||||
(c) Fixed Overhead | $ 2,500,000 | |||||||
(d) Variable Overhead | $ 550,000 | |||||||
1) | Compute the total variable overhead variance and the separate variable overhead spending and efficiency variances. | |||||||
2) | Compute the total fixed overhead variance and the separate fixed overhead spending and volume variances. |
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