Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ravena Labs., Incorporated makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at
Ravena Labs., Incorporated makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: - 3,750 units of compound were produced during the month. - There was no beginning direct materials inventory. - Direct materials purchased: 12,000 ounces for $225,000. - The ending direct materials inventory was 2,000 ounces. - Direct labor-hours worked: 5,600 hours at a cost of $67,200. - Variable manufacturing overhead costs incurred amounted to $18,200. - Variable manufacturing overhead applied to products: $18,375. The variable overhead rate variance for October is
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started