Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Task 4-Assessment [) - Word (Product Activation Failed) AGE LAYOUT REFERENCES MAILINGS REVIEW VIEW . AA AA - 21 AaBbCeD AaBbCcDX AaBbC AaBbcc] Aab x'

image text in transcribedimage text in transcribed
Task 4-Assessment [) - Word (Product Activation Failed) AGE LAYOUT REFERENCES MAILINGS REVIEW VIEW . AA AA - 21 AaBbCeD AaBbCcDX AaBbC AaBbcc] Aab x' A . Z . A . E No Spacing Heading 1 Heading 2 Title nl Paragraph Styles Question One - Problem solving (calculations and analysis): Hari Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Hari Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. OMR Direct materials (2 test tubes @ OMR1.46 per tube) 2.92 Direct labor (1 hour @ OMR24 per hour) 24.00 Variable overhead (1 hour @ OMR6 per hour) 6.00 Fixed overhead (1 hour @ OMR10 per hour) 10.00 Total standard cost per test 42 92 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2021, when 1,475 tests were conducted, resulted in the following. OMR Direct materials (3,050 test tubes) 4,270 Direct labor (1,550 hours) 35 650 Variable overhead 7,400 Fixed overhead 15,000 Monthly budgeted fixed overhead is OMR14,000. Revenues for the month were OMR75,000, and selling and administrative expenses were OMR5,000 Instructions a. Compute the price and quantity variances for direct materials and direct labour (4 ATES W wTask 4 Assessment (2) - Word [Product Activation Failed) E LAYOUT REFERENCES MAILINGS REVIEW VIEW E . E. 24 AaBbCCD AaBbCCD: AaBbC AaBbcc) Aab A . y . A . BE30. 2 . B T Normal No Spacing Heading 1 Heading 2 Title Paragraph Styles when 1,475 tests were conducted, resulted in the following OMR Direct materials (3,050 test tubes) 4,270 Direct labor (1,550 hours) 35,650 Variable overhead 7,400 Fixed overhead 15,000 Monthly budgeted fixed overhead is OMR14,000. Revenues for the month were OMR75,000, and selling and administrative expenses were OMR5,000. Instructions a. Compute the price and quantity variances for direct materials and direct labour (4 marks). b. Compute the total overhead variance (2 mark). C. Prepare an income statement for management (6 marks). d. Critically provide one possible explanation for each unfavourable variance (3 marks) Required: Total: 15 marks W O W

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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 Accounting

Authors: Libby, Short

6th Edition

978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881

Students also viewed these Accounting questions

Question

What are the skills of management ?

Answered: 1 week ago