Question
Problem 23-1A Costello Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials2 pound plastic at $7.26 per
Problem 23-1A Costello Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials2 pound plastic at $7.26 per pound $ 14.52 Direct labor2.00 hours at $12.00 per hour 24.00 Variable manufacturing overhead 15.00 Fixed manufacturing overhead 17.00 Total standard cost per unit $70.52 The predetermined manufacturing overhead rate is $16 per direct labor hour ($32.00 2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours (5,900 units) for the month. The master budget showed total variable costs of $88,500 ($7.50 per hour) and total fixed overhead costs of $100,300 ($8.50 per hour). Actual costs for October in producing 4,800 units were as follows. Direct materials (9,740 pounds) $ 72,563 Direct labor (9,430 hours) 115,706 Variable overhead 109,976 Fixed overhead 45,454 Total manufacturing costs $343,699 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)
Total materials variance
Materials price variance
Materials quantity variance
Total labor variance
Labor price variance r
Labor quantity variance
Compute the total overhead variance.
Total overhead variance
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