Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer the ENTIRE question Parl August Variance Analysis During September of the current year, Robin was asked to perform variance analyses for August. The
Please answer the ENTIRE question
Parl August Variance Analysis During September of the current year, Robin was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August were as follows: Material #crear Direct Afaterials Price per #croar Direct Afarerials Guantity $ 0.016 102 Cream Base (oz.) Natural Oils (oz.) Bottles $ 0.32 31 $ 0.42 12.5 Activity Actual Direct Labor Rare $ 18.20 $ 14.00 #croar Direct Lator Fime per 19.50 5.60 Mixing Filling $ Actual Variable Overhead Normal Volume (Cases) 305.00 1,600 The prices of the materials were different from standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less Quivers Inc. began operations on January 1 of the current year. The company produces eight-ounce bottles of jet wax called Ophelia Shine. The wax is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead DIRECT MATERIALS Cost Units Cost Direct Materials Behavior per Case per Unit Cost per Case Cream base Variable 100 02 50.02 $ 2.00 Natural oils Variable 30 oz. 0.30 9.00 Borte (8-oz) Variable 12 bortes 0.50 6.00 $17.00 Department Mixing Filling Cost Behavior Variable Variable DIRECTLABOR Time per Case 20 min. 5 25 min Labor Rate per Hour $18.00 14.40 Direct Labor Cost per Case 56.00 1.20 $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $ 600 Facility lease Fixed 14.000 Equipment depreciation Fixed 4300 Supplies Fixed 669 $19.560 Requirement #12: Determine the factory overhead variance. Variance overhead (utility cost) at standard cost Cases Factory Overhead Controllable Variance Actual variable overhead Variable overhead at standard cost Fronwy owadomable Canange Doisin Total fixed factory overhead Toxa/ Fixed factory overhead rate Cases Total fixed factory overhead Factory Overhead Volume Variance Normal volume (cases) Actual volume loases) Difference Fixed factory overheadrate $0.00 Deon AnalysisStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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