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Please see attached cost accounting question. 1 problem. 1. On July 1, Ossege Company began to manufacture a new product. The company uses a standard
Please see attached cost accounting question. 1 problem.
1. On July 1, Ossege Company began to manufacture a new product. The company uses a standard cost system to account for manufacturing costs. The standard costs per unit for the new product are as follows: Raw materials Direct labor Factory overhead 10 gallons @ $2.00 per gallon .5 hours @ $16 per hour $8 per direct labor hour ($8 x .5) $20 8 4 $32 In addition, the following data came from Ossege's books for the month of July: Actual number of units produced Actual number of units sold 5,200 4,500 Debit Sales Purchases (55,000 gallons) Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Factory overhead net variance Credit $225,000 $109,000 1,000 4,000 2,650 800 1,200 There were no beginning or ending balances in Materials. Compute each of the following items for Ossege for the month of July: 1) Standard quantity of raw materials allowed for actual production. 2) Actual quantity of raw materials used. 3) Standard direct labor hours allowed. 4) Actual direct labor hours worked. 5) Actual direct labor rate. 6) Actual total overheadStep by Step Solution
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