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The Dawn Company has purchases 6000 pounds of material at Rs. 7.30 per pound. Actual costs incurred in the production of 2,000 units during June
The Dawn Company has purchases 6000 pounds of material at Rs. 7.30 per pound. Actual costs incurred in the production of 2,000 units during June were follows: Direct Labor Direct Material VMOH Fixed MOH 4450 hours @ Rs.18.10 per hour 4200 pounds @ Rs.7.30 Rs. 28480 Rs. 42,000 Standards are: Direct Material Direct Labor VMOH Budgeted Fixed MOHRs. Budgeted Production 2 pounds @ Rs. 7.0 per pound 2 hour @ Rs. 18 per hour Rs. 6 per hour 43,000 21,500 Required: (a) Material Price & Quantity Variance. (6) Labor Rate & Efficiency Variance. (c) Variable Overhead Spending & Efficiency Variance. (d) Fixed Overhead Budget & Capacity Variance
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