Question
Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (fiberglass) 15 sq. ft. $
Rip Tide Company manufactures surfboards. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (fiberglass) | 15 | sq. ft. | $ | 5 | per sq. ft. | $ | 75.00 | |
| Direct labor | 10 | hrs. | $ | 15 | per hr. | 150.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 10 | hrs. | $ | 6 | per hr. | 60.00 | ||
| Fixed manufacturing overhead ($24,000 300 units) | 80.00 | |||||||
Rip Tide has the following actual results for the month of June:
| Number of units produced and sold | 316 | |
| Number of square feet of fiberglass used | 4,960 | |
| Cost of fiberglass used | $ | 28,272 |
| Number of labor hours worked | 3,100 | |
| Direct labor cost | $ | 48,050 |
| Variable overhead cost | $ | 15,190 |
| Fixed overhead cost | $ | 24,800 |
Calculate Fixed overhead spending variance and Fixed overhead volume variance. Please include the formula and work
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The Customer Satisfaction Audit
Authors: Abram I Bluestein, Michael Moriarty, Ronald J Sanderson
1st Edition
190243398X, 978-1902433981
