Question
Planned: Production 22,000 units Standards 100 lbs. @ $2.50/lb. = $250/unit Direct Labor 2 hrs/unit * $10/hour = $20/unit Variable Overhead $2.50/direct labor hour =
Planned: Production 22,000 units Standards 100 lbs. @ $2.50/lb. = $250/unit Direct Labor 2 hrs/unit * $10/hour = $20/unit Variable Overhead $2.50/direct labor hour = $5/unit Fixed Overhead $698,500 Actual: Production 24,000 units Material used 2,640,000 lbs @ $2.40/lb Direct Labor 49,000 hours total $465,500 Variable Overhead $128,000 Fixed Overhead $750,000 What is the Materials Usage Variance?
| a. | $600,000 U | |
| b. | $600,000 F | |
| c. | $264,000 U | |
| d. | $264,000 F |
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
5th Canadian edition
77429494, 1259105709, 1260480798, 978-1259105708
