Problem 11-10

Please show work.

The Lawn Company produces rubber seals used in the aerospace industry. Standards call for 3 pounds of material at $2.49 per pound for each seal. The standard cost for labor is 1.5 hours at $15.00 per hour. Standard overhead is $10.00 per unit. For the year 2018, expected production is 128,900 seals with fixed overhead of $128,900 and variable overhead of $9.00 per seal. During 2018, a total of 125,000 seals were produced. The company purchased 455,000 pounds of material for $1,151,150. Production required 402,100 pounds of material. The cost of direct labor incurred was $2,900,000 with an actual average wage rate of $15.25 per hour. Actual overhead for the year was $928,000.

Problem 11-10 The Lawn Company produces rubber seals used in the aerospace industry. Standards call for 3 pounds of material at $2.49 per pound for each seal. The standard cost for labor is 1.5 hours at $15.00 per hour. Standard overhead is $10.00 per unit. For the year 2018, expected production is 128,900 seals with fixed overhead of $128,900 and variable overhead of $9.00 per seal. During 2018, a total of 125,000 seals were produced. The company purchased 455,000 pounds of material for $1,151,150. Production required 402,100 pounds of material. The cost of direct labor incurred was $2,900,000 with an actual average wage rate of $15.25 per hour. Actual overhead for the year was $928,000. Determine the standard cost per seal. (Round answer to 2 decimal places, e.g. 15.25.) $ Standard cost per seal Calculate the material, labor, and overhead variances. (Round intermediate calculations to 2 decimal places, e.g. 14.37 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.) $ Material Price Variance $ Material Quantity Variance $ Labor Rate Variance $ Labor Efficiency Variance $ Controllable Overhead Variance $ Overhead Volume Variance Prepare a variance summary. (Enter unfavorable variances using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $ Material Price Variance Material Quantity Variance Labor Rate Variance Labor Efficiency Variance Controllable Overhead Variance Overhead Volume Variance $ Total Indicate which variances should be investigated. Need to be investigated Material Price Variance Material Quantity Variance Labor Rate Variance Labor Efficiency Variance Controllable Overhead Variance Overhead Volume Variance