Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P25-1B Buil Corporation manufactures a single product. The standard cost per unit of product is as follows. Direct materials 2 pounds of plastic at $6

image text in transcribed
image text in transcribed
P25-1B Buil Corporation manufactures a single product. The standard cost per unit of product is as follows. Direct materials 2 pounds of plastic at $6 per pound Direct labor-2 hours at $13 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The master manufacturing overhead budget for the month based on normal productive capacity of 20,000 direct labor hours (10,000 units) shows total variable costs of $70,000 ($3.50 per labor hour) and total fixed costs of $50,000 ($2.50 per labor hour). Normal productive capacity is 20.000 direct ductive capacity is 20,000 direct labor hours. Overhead is applied on the basis of direct labor hours. Actual costs for November in producing 9,700 units were as follows. Direct materials (20,000 pounds) $119,000 Direct labor (19,600 hours) 256,760 Variable overhead 68,800 Fixed overhead 50.000 Total manufacturing costs $494.560 The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Instructions (a) Compute all of the materials and labor variances (b) Compute the total overhead variance. PROBLEM 25-1B (a) Total Materials Variance: (AQ X AP (SQ X SP) Materials Price Variance: (AQ X AP) Materials Quantity Variance: (AQ x AP) Total Labor Variance: (AH X AR) (SH X SR) *9,700 x 2 Labor Price Variance: CAH X AR) (SH X SR) Labor Quantity Variance: (AH X SR) (SH x SR) (b) Total Overhead Variance: Actual Overhead Overhead Applied

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

Step: 3

blur-text-image

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

Process Driven Comprehensive Auditing A New Way To Conduct ISO 9001 2008 Internal Audits

Authors: Paul C. Palmes

2nd Edition

0873897544, 978-0873897549

More Books

Students also viewed these Accounting questions

Question

5. Understand how cultural values influence conflict behavior.

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago