Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide the detailed analysis and calculation of Q1 to Q7, Thank you Kosai is an oil-based product used to remove rust on bolts and

image text in transcribed

Please provide the detailed analysis and calculation of Q1 to Q7, Thank you

Kosai is an oil-based product used to remove rust on bolts and nuts that are stuck. Its accounting system uses standards cost. The standards per 0.5 liter can of solution call of 0.75 liters of material and 4 hours of labor. (0.75 liters of materials are needed due evaporation in the production process.) The stand cost per liter of material is $2.50. The standard cost per hour for labor is $13.00. Overhead is applied at the rate of $15.375 per can. Expected production is 8,000 cans with fixed overhead per year of $35,000 and variable overhead of $11 per unit (a .5-liter can). During 2018, 7,800 cans were produced; 13,000 liters of material were purchased at a cost of $60,000; 10,100 liters of material were used in production. The cost of direct labor incurred in 2018 was $376,250, based on an actual wage rate of $11 per hour. Actual overhead for 2018 was $125,000. Calculate the following: Standard cost per unit (Blank 1); Material price variance (Blank 2); Material quantity variance (Blank 3); Labor rate variance (Blank 4); Labor efficiency variance (Blank 5); Controllable overhead variance (Blank 6); Overhead volume variance (Blank 7). (Round to the nearest cent i.e. two digits after decimal and use comma separators for thousands)

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

More Books

Students also viewed these Accounting questions