Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 11-49 Complete Analysis of Cost Variances; Review of Chapters 10 and 11 (LO 11-5) Chillco Corporation produces containers of frozen food. During April, Chillco

image text in transcribed
image text in transcribed
Problem 11-49 Complete Analysis of Cost Variances; Review of Chapters 10 and 11 (LO 11-5) Chillco Corporation produces containers of frozen food. During April, Chillco produced 785 cases of food and incurred the following actual costs. Variable overhead Fixed overhead Actual labor cost (4,000 direct-labor hours) Actual material cost (24,500 pounds purchased and used) $ 6,900 10,500 74,400 51,450 Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows: $ 72.00 54.00 dard Costs per Case Direct labor (4 hours at $18 per hour) Direct material (30 pounds at $1.80 per pound) Variable overhead (4 direct-labor hours at $2.10 per hour) Fixed overhead (4 direct-labor hours at $3 per hour) Total 8.40 12.00 $146.40 Annual Budget Information Variable overhead $ 84,000 Fixed overhead $120,000 Planned activity for year 40,000 direct-labor hours Required: Compute the following cost variances from the available data, (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (.e., zero variance). Do not round Intermediate calculations.) Annual Budget Information Variable overhead $ 84,000 Fixed overhead $120,000 planned activity for year 40,000 direct-labor hours Required: Compute the following cost variances from the available data (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (ie, zero variance). Do not round intermediate calculations.) Direct-material price variance Direct-material purchase price variance Direct-material quantity variance Direct labor rate varianco Direct-labor officiency varianco Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance

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_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions