Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3: Variance Analysis (20 marks in total) You have introduced a standard cost accounting system for FOL. The following standard costs have been developed

Question 3: Variance Analysis (20 marks in total)

You have introduced a standard cost accounting system for FOL. The following standard costs have been developed for the Cattle drench.

Direct materials (1 kilogram)

$ 20

Direct Labour (.25 hours)

$ 15

Overhead (DLH basis)

$ 3

$ 38

Production and cost information for May was:

Actual direct material purchased

1200

kilograms

Actual direct materials issued

900

kilograms

Actual output

800

kilograms

Actual cost of materials purchased

$ 25,500

Actual direct labur rate

$ 60

per hour

Actual direct labour hours

280

Actual overhad costs

$ 4,500

Required

  1. Calculate the following standard cost variances for May and provide general journal entries to record the cost flows for May.

(a) materials price

(b) materials usage

(c) direct labour rate

(d) direct labour efficiency

(e) total overhead

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

Auditing And Systems Exam Questions And Explanations

Authors: Ph.D. Gleim, Irvin N., Ph.D. Hillison, William A., Grady M. Irwin

17th Edition

1581949278, 978-1581949278

More Books

Students also viewed these Accounting questions

Question

what could be a good branding strategy for drug pumps in Spain?

Answered: 1 week ago

Question

f(x)=(3+2x), |x|

Answered: 1 week ago