Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part A Problem 12.41A a-c Inman Corporation manufactures a single product. The standard cost per unit of product is as follows: $10.40 22.50 Direct materials2
Part A
Problem 12.41A a-c Inman Corporation manufactures a single product. The standard cost per unit of product is as follows: $10.40 22.50 Direct materials2 kg of plastic at $5.20 per kilogram Direct labour-2 hours at $11.25 per hour Variable manufacturing overhead Fixed manufacturing overhead 8.15 5.80 Total standard cost per unit $46.85 The master manufacturing overhead budget for the month based on the normal productive capacity of 20,600 direct labour hours (10,300 units) shows total variable costs of $82,400 ($4 per labour hour) and total fixed costs of $61,800 ($3 per labour hour). Normal production capacity is 20,600 direct hours. Overhead is applied based on direct labour hours. Actual costs for producing 10,060 units in November were as follows: Direct materials (20,500 kg) Direct labour (20,120 hours) Variable overhead Fixed overhead $105,575 230,374 80,340 60,770 $477,059 Total manufacturing costs 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. Calculate all of the materials and labour variances. (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.) Total materials variance $ Materials price variance $ Calculate all of the materials and labour variances. (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.) Total materials variance $ Materials price variance $ Materials quantity variance v $ Total labour variance $ Labour price variance > $ Labour quantity variance $ Calculate the total overhead variance. Total overhead variance $ Calculate the overhead budget variance and the overhead volume variance. Overhead budget variance $ Overhead volume variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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