Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P12-53B accounting system. In May 2016, it produced 11,200 suits. The following standard and actual cost data applied to the month of May when normal

image text in transcribedimage text in transcribed

P12-53B accounting system. In May 2016, it produced 11,200 suits. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labour hours. All materials purchased were used Sasha Clothiers is a small company that manufactures oversize suits. The company uses a standard cost (SO 2, 3) Calculate variances and identify significant variances. Cost Element Direct materials Direct labour Overhead Standard (per unit) 8 m at $4.40 per metre 1.2 hours at $13.40 per hour 1.2 hours at $6.10 per hour$49,000 fixed overhead Actual $375,575 for 90,500 m ($4.15 per metre) $200,220 for 14,200 hours ($14.10 per hour) (fixed $3.50; variable $2.60) $37,000 variable overhead Overhead is applied based on direct labour hours. At normal capacity, the budgeted fixed overhead costs are $49,000, and the budgeted variable overhead is $36,400

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_2

Step: 3

blur-text-image_3

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

Auditing With The Computer

Authors: Wayne S. Boutell

1st Edition

0520363329, 978-0520363328

More Books

Students also viewed these Accounting questions

Question

What are the legal and ethical frameworks for your position?

Answered: 1 week ago