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N87 , X fx 28 Special order lamps are manufactured in division S. Because of the precise nature of the process a 27 standard cost

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N87 , X fx 28 Special order lamps are manufactured in division S. Because of the precise nature of the process a 27 standard cost system has been developed. The following standards are used for the special orders: Standards Lamp Kits Direct Labor Variable Overhead ** Fixed Overhead Total $16.000000 per lamp 2.400000 per lamp (4 lamps/hr.) 0.250000 per lamp (4 lamps/hr.) 10.000000 per lamp $ 28.650000 Fixed overhead is based on expected production of 4,013 customized lamps each month. 61 To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries 62 are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) 63 while entries are made to the accounting system at standard. Variance analysis is used to analyze the 64 differences. 65 74 75 Job Order Costing Section 76 77 On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The 85 job called for 4,000 customized lamps. The following set of transactions occurred from 86 January 5 until the job was completed: 87 97 98 99 100 101 109 110 5-Jan Purchased 4,225 Lamp Kits @ $16.30 per kit 9-Jan 4,025 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 630 Direct Labor Hours @ $9.50 per hour. 30-Jan Payroll of 680 Direct Labor Hours @ $9.75 per hour. 30-Jan 3,987 lamps were completed and shipped. All materials requisitioned were used or scrapped. 111 112 Month End Overhead Information Actual Variable Overhead Actual Fixed Overhead 116 $ 1,336.20 $ 41,123.45 117 118 9 10 11 5 How many Lamps were completed? 7 Note: Show favorable variances as negative numbers Round dollars to two places, $#### 30 What was the total material price variance for the Lamp Kits purchased? $ 1.267.50 (15.01) 42 What was the material usage variance for Lamp Kits? $ 608.00 (15.02) 57 What was the direct labor efficiency variance ? $ 3,007 20 (15.03) 69 What was the direct labor rate variance? (15.04) 107 108 109 110 119 120 10 11 12 MacB

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