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Part I: Candlestick Manufacturers, Inc., makes one product, a candlestick bolder sold in upscale boutiques by people who have more moncy than time. One year
Part I: Candlestick Manufacturers, Inc., makes one product, a candlestick bolder sold in upscale boutiques by people who have more moncy than time. One year ago the company adopted a standard costing system to ensure maximum profit for the corporation. Manufacturing overhead (MOH) is based on a normal capacity of 100,000 units per year. The firm uses a predetermined overhead rate (POHR) of $18 per machine hour, 58MH variable overhead (VOH) and 510MH fixed overhead (FOH). Each unit requires 1.5 machine hours. The standard rate card is as follows: The following pertains to actual activity incurred this year (2020) : 1. Purchased 120,000 feet at 56.80 per foot and used 110,000 feet in production. There were no beginning raw materials on hand. 2. Incurred and paid 235,000 direct labor bours at $15.80 per hour: 3. Incurred and paid 144,000 machine hours costing $743,040 in variable overhead. 4. Incurred and paid $1,485,000 in fixed overhead. 5. Completed 94,000 units during the year. 6. Sold 91,500 units at $99.00 per unit. Part A: Calculate the following variances: Raw materials price variance (RMPV) Dicector taber peice variance (DL.PY) Thenct labot cuarlify vatiacse (iDiov) Winable onerthea! frice variance Vardle overtead efifictscy vieriasit Fited enatied buldet sirians hed iresteral vilare varunct Ther mur. Part D tist the variances should maraycment investizate, if any, this year
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