Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
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. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
A First Course in Differential Equations with Modeling Applications
Authors: Dennis G. Zill
11th edition
978-1305965720
