Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Production Variances Question: Hello, I hope all is well. Given the information below, if you could please show the computations for all variances (price variances,

Production Variances Question: Hello, I hope all is well. Given the information below, if you could please show the computations for all variances (price variances, spending variances, efficiency variances (if possible), and production volume variances).

image text in transcribed

The Johnson Company uses a standard cost system. This month's data regarding its product follows: Budgeted price of materials: $1.00 per pound Budgeted pounds of material: 3 pounds per unit of output Budgeted direct labor cost: $4.00 per direct labor hour Budgeted direct labor hours: 5 hours per unit of output Budgeted variable overhead cost: $0.90 per direct labor hour Denominator activity level per month: 2500 units Materials purchased and used: 6,700 pounds at a total cost of $6,200 Direct labor costs incurred: $41,800 for 11,000 hours Variable overhead costs incurred: $9,500 Fixed overhead costs incurred: $6,150 Fixed overhead spending variance: $ 100 favorable Units produced this month: 2,000 Units sold this month: 500 Assume absorption costing is used for product costing. Required: Calculate all variances

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

Financial And Managerial Accounting Working Papers Volume 1

Authors: Belverd E. Needles

6th Edition

0618102337, 978-0618102334

More Books

Students also viewed these Accounting questions