Question
The dingleberry company makes berry sauce. It has established the following standards for each container of sauce: Raw materials: 0.1 kg at $2.50 per kg
The dingleberry company makes berry sauce. It has established the following standards for each container of sauce: Raw materials: 0.1 kg at $2.50 per kg Direct labor: 15 minutes at $10 per hour Variable manufacturing overhead one (1) machine hour at $2.50 per machine hour
In November, the company made 6,000 containers of sauce. Here are some facts about making the sauce: Raw materials: 1,500 kg purchased at a cost of $2.60 per kg Direct labor: 1,150 hours at a cost of $13,800 Variable manufacturing overhead $13,000 and 6,500 machine hours
At the end of the month, 500 kg of raw materials remained in stock. There was no stock of raw materials at the beginning of the month. a) Calculate the price and quantity variances of raw materials for the month.
b) Calculate the direct labor rate and time differentials for the month.
c) Calculate the variable manufacturing overhead cost and performance variances for the month.
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