NEED HELP ASAP!!!
Yodo Inc. uses a standard costing system to assist in the control of costs The following estimates are made, setting standards and calculating the pre determined overhead rate at the beginning of fiscal 2018 Denominator level of activity Variable overhead costs Fixed overhead costs Total overhead costs 27,000 machine hours $162 000 $$48.000 At standard, each unit requires 25 machine hours to complete Overhead costs are applied to production based on standard machine hours Each Spectre requires 6 kilograms of raw material, which has a standard cost of $3.40 per kilog and 1.5 hours of direct labour hours which has a standard rate of $15 per hour Actual operating activity and costs for 2018 were as follows: Activity Number of Spectres produced Actual machine hours recorded Actual labour hours worked Direct labour cost Manufacturing overhead cost $215.775 $792-180 (of which $651,600 was fixed) At the beginning of 2018, there were 500 kilograme of raw materials on hand. 55.800 kilograms of raw materials were purchased during the year at a total cost of $238.824. 3.700 kilograms remained in inventory at year end. REQUIRED: Calculate the following production varances: a) Materials price and quantity variances b) Labour rate and efficiency variances c) Variable overhead spending and officiency variances d Fixed overhead budget and volume variances The president of Yodo Company has been very concerned about cost control over the last several periods. Suppose that you are the controller of Yodo Company and you have time to investigate only TWO of the variances that you calculated in (1) before meeting with the president to discuss 2018 results a) Which variances would you choose to investigate? Why? b) the president asks you to explain the variances and state possible causes What do you say In relation to the standard costing information provided and the variances calculated at 1. abov a) Prepare the ouma enoy to record the incurrence of direct labour cost b) Prepare the journal entry to record the purchase of Raw materials on account c) Prepare the oumal onby to record the use of materials Yodo Inc. uses a standard costing system to assist in the control of costs The following estimates are made, setting standards and calculating the pre determined overhead rate at the beginning of fiscal 2018 Denominator level of activity Variable overhead costs Fixed overhead costs Total overhead costs 27,000 machine hours $162 000 $$48.000 At standard, each unit requires 25 machine hours to complete Overhead costs are applied to production based on standard machine hours Each Spectre requires 6 kilograms of raw material, which has a standard cost of $3.40 per kilog and 1.5 hours of direct labour hours which has a standard rate of $15 per hour Actual operating activity and costs for 2018 were as follows: Activity Number of Spectres produced Actual machine hours recorded Actual labour hours worked Direct labour cost Manufacturing overhead cost $215.775 $792-180 (of which $651,600 was fixed) At the beginning of 2018, there were 500 kilograme of raw materials on hand. 55.800 kilograms of raw materials were purchased during the year at a total cost of $238.824. 3.700 kilograms remained in inventory at year end. REQUIRED: Calculate the following production varances: a) Materials price and quantity variances b) Labour rate and efficiency variances c) Variable overhead spending and officiency variances d Fixed overhead budget and volume variances The president of Yodo Company has been very concerned about cost control over the last several periods. Suppose that you are the controller of Yodo Company and you have time to investigate only TWO of the variances that you calculated in (1) before meeting with the president to discuss 2018 results a) Which variances would you choose to investigate? Why? b) the president asks you to explain the variances and state possible causes What do you say In relation to the standard costing information provided and the variances calculated at 1. abov a) Prepare the ouma enoy to record the incurrence of direct labour cost b) Prepare the journal entry to record the purchase of Raw materials on account c) Prepare the oumal onby to record the use of materials
